File No. 180/41.

Chargé Pierrepont to the Secretary of State.

No. 91.]

Sir: I have the honor to report that the President of Chile opened the ordinary session of the National Congress on June 1 with all the customary solemnity, the ceremony being followed by a military review.

Inclosed herewith are two copies of the annual message which the President himself read to Congress, together with translations of the extracts relating to the United States, the relations with Peru, the situation between Peru and Ecuador, and the legation in Japan.

I have, etc.,

Seth L. Pierrepont.
[Inclosure—Translation.]

Opening of the National Congress—Joint session of the two Houses, June 1, 1910—Presidency of Luis Antonio Vergara.

The lack of precision in the boundaries of the old Spanish colonies of America has unfortunately given rise to other controversies of the same kind, and among them the dispute affecting Peru and Ecuador is especially sensitive.

[Page 196]

Not only the old and strong chains of friendship that bind us to Ecuador, but also our interest in preserving the continental peace, have induced us to multiply our efforts in order to obtain a friendly solution of the difficulty.

Being inspired by this high motive and within the sphere of action corresponding to us, under the circumstances, we insinuated at an opportune moment the idea of a mediation. We hope to see the good offices that three friendly powers have offered crowned by an agreement equitable and satisfactory to the aspirations and harmony of the interests of Ecuador and Peru.

* * * * * * *

The traditional cordiality of our relations with Brazil have remained unchanged, and it gives me pleasure to testify to the fact that the intervention of her Government brought about the agreement which we reached with the United States of America to submit an ancient diplomatic claim to arbitration.

* * * * * * *

Our diplomatic relations with Peru have been interrupted once more.

In the course of the negotiations that took place in order to establish the basis of the plebiscite that should determine the nationality of the Provinces of Tacna and Arica, Peru saw fit to withdraw the legation she had accredited in Santiago.

I deplore that this resolution will postpone the opportunity for both countries to come to a definite agreement on this important question, a solution of which would be beneficial for both; and we can not understand the reasons of that Government for not considering our propositions, which are inspired by conciliatory and equitable sentiments, and unite with the desire that animates us to carry out the clauses of the treaty of Ancon referring to Tacna and Arica.

Various measures destined to augment the agricultural and industrial development of Tacna and Arica have drawn from the Government of Peru some observations which we have not esteemed proper, because those measures constituted acts of internal administration, executed in the exercise of the sovereignty which the treaty of Ancon conferred on Chile, and in fulfillment of the duties which that sovereignty places upon us respecting the advancement and progress of the people submitted to the laws of the country.

The diversity of origin and tendencies between the civil and ecclesiastical authorities of Tacna and Arica has brought about difficulties.

For that reason, and from the fact that no priest, Chilean or foreigner, has obtained the necessary authority to exercise his ministry, the Province of Tacna has been deprived of all religious services.

In order to remedy the inconveniences of the situation I applied to the Holy See, and His Holiness has seen fit to create a general military vicary, that shall attend to the religious services of that Province after a fashion.

The protocol celebrated with the United States of America to submit the Alsop claim to arbitration has been approved by the Government of that country and also by ours.

The contracting parties shall defend their respective rights before the court of arbitration in the manner and as amply as they shall consider convenient.

* * * * * * *

The minister of Chile to Japan is already at his post, a mission that has the double purpose of strengthening our friendly relations with that Empire and to correspond to the permanent legation established by that country in Chile.

* * * * * * *

The foreign commerce of the Republic, the importation as well as the exportation, reached in 1909 the figure of $568,512,672 of 18d.

The exportation decreased from $319,149,072 in 1908 to $306,429,909 in 1909.

The decrease is due exclusively to the fall in the price of saltpeter. In spite of the fact that the quantity of saltpeter exported increased by 750,895 metrical quintals, the value of the exportation diminished by $22,995,000. On the other hand, there was an increase in the exportation of animal and vegetable products, especially of barley and wheat.

The customs receipts reached the sum total of $113,143,084 of 18d, a sum superior to that received in 1908 by $3,242,728. The import duties, which reached the sum of $40,390,108, increased by $736,385, and the export duties, which produced $71,876,356, increased by $2,721,084.

* * * * * * *