File No. 723.2515/292.

The American Minister to Chile to the Secretary of State.

No. 396.]

Sir. I have the honor to report that no progress has been made in the Chilean-Peruvian negotiations for the settlement of the Tacna-Arica dispute since the date of my last report, April 29th; last (No. 334).

Mr. Edwards, Chilean Minister in London, who was Minister for Foreign Affairs of Chile when the diplomatic relations of the two countries were last severed, recently arrived in Santiago. On his way he stopped a few hours in Lima and, in company with Admirals Montt and Uribe, was received by the President of Peru.

In a conversation with him a few days ago I asked him if there were any developments. He replied that he had a very friendly talk with President Billinghurst, but only along the general line of the interest of both countries in a prompt and mutually satisfactory settlement. He then said that his idea was that the Chilean Minister in Berlin or some other European capital—not London—be authorized to conclude a treaty with his Peruvian colleague, who would be similarly authorized; that if the Congresses of both countries [Page 1235] were thus confronted with a signed treaty he thought the matter would be readily adjusted, whereas it seemed impossible to make any progress with the negotiations as at present conducted. His idea is that Chile should insist upon a plebiscite being held within two or three years or else after 99 years—either a very short or a very long time. He is convinced that if a plebiscite were to be held in the two provinces now, Chile would win. He even went so far as to say that he thought it would be possible to arrange that the inhabitants of this district should, of their own initiative, vote or petition for definite incorporation with Chile. He was evidently much impressed with what he saw and heard during his short stay in Arica.

Subsequently I had an informal conversation with Mr. Villegas, the Minister for Foreign Affairs, on the subject. He informed me that there was nothing new, but that he hoped to advance matters in the near future. He said that it was absolutely necessary to conclude the question and that if Peru would not come to terms directly and as a result of friendly overtures, Chile would try to find some other means of persuasion. He hinted that the good offices of friendly governments might be asked to counsel Peru; he especially mentioned Brazil and hinted that the United States might also be called upon. His policy since he has been Minister for Foreign Affairs has been to draw Brazil and Chile as closely together as possible, and while he has maintained most friendly relations with the Argentine it has been apparent to me that he sets greater store upon the friendship of Brazil—and of course, in speaking with me, the United States also.

Mr. Alfredo Irarrazaval, the new Chilean Minister to Brazil, is considered a more able man than his predecessor, Mr. Herboso, and his transfer from Tokio to Brazil, in my opinion, is intimately connected with the Chilean-Peruvian controversy and their desire to settle the same before the opening of the Panama Canal. He remained in Chile about a month receiving instructions and presented his credentials in Rio a few days ago, and the formal presentation discourses were more than usually cordial.

The Minister also said that after the Congress adjourned for the national holidays he hoped he could so far advance matters as to be in position to give me definite news before my departure for the United States on leave, as he was very anxious to have me explain to the President and Secretary of State Chile’s position. I replied that I would be very glad to do so.

Meantime there is a multitude of counsellors but no purposes established.

I have [etc.]

Henry P. Fletcher.