File No. 723.2515/117.

The American Chargé d’Affaires at Santiago to the Secretary of State.


Your telegram March 24, via Petropolis. Chilean Minister for Foreign Affairs told me that Chile is determined to end Tacna-Arica dispute and to abide by Ancon Treaty as she interprets it, but needs territories economically and strategically and intends to keep them, but would be willing to pay Peru much larger indemnity than that specified; and added that should any neutral power desire to assist the settlement it should address Peru, urging the acceptance of a money indemnity, Chile being very determined. As to the threat referred to in my March 23, the Minister said: “We did not say so”, emphasizing the word “say”.