File No. 723.2515/278.

The American Minister to Peru to the Secretary of State.

No. 177.]

Sir: When the press on the 11th instant announced the resumption of diplomatic relations between Peru and Chile and an agreement for the settlement of the Tacna and Arica question, I have [Page 1226] the honor to report that the President had agreed to notify me when certain data was at hand upon the nitrate development, and I had delayed calling because expecting a notice from him. It was not, therefore, until today that confirmation of the reports was sought and obtained. The President said that he had been wanting to see me to give the particulars, and went into a communicating room where he dictated the enclosed paper giving the substance of the agreement reached between the two countries. I herewith enclose same and a translation. He spoke with apparent gratification at the outcome, saying that his country was at this time in no condition to press for a plebiscite, and he expects that Congress will ratify the action taken.

I have [etc.]

H. Clay Howard.
[Inclosure.]

[Untitled]

1st.
On Sunday, the 10th instant, at two o’clock in the afternoon, the Ministers of Chile and Peru exchanged friendly cablegrams, renewing diplomatic relations.
2nd.
It was agreed mutually to postpone the popular vote with respect to Tacna and Arica until 1933.
3rd.
The popular vote is to be taken under the presidency of a mixed commission composed of two Peruvian delegates and two Chilean delegates, and is to be presided over by the President of the Supreme Court of Justice of Chile.
4th.
All those born in Tacna and Arica, and Chileans and Peruvians not born there who have resided three years in the territory, will vote.
5th.
Chile will send a Minister Plenipotentiary to Peru and Peru will send a Minister Plenipotentiary to Chile.
6th.
The Chilean Government will pay to the Peruvian Government £500,000 sterling for the occupation of the disputed territory during the twenty-one years.