File No. 723.2515/271.
The American Minister to Chile to the Secretary of State.
Santiago, November 10, 1912.
I am informed that Peru and Chile are about to agree upon a settlement of the Tacna-Arica question on the basis of a commercial treaty of reciprocity to be concluded at once, Chile to pay Peru £500,000 on the signature of treaty. There will be a plebiscite to determine sovereignty over provinces to be held twenty-one years hence and limited to Peruvians and Chileans then resident in the provinces. Election board to be composed of Peruvians and Chileans, one of whom will be President of Chilean Supreme Court. Losing nation to pay indemnity stipulated in treaty of Ancon. Have not been able to verify this officially but the information seems reliable.