File No. 825.032/7.

Minister Fletcher to the Secretary of State.

No. 490.]

Sir: I have the honor to report that the ordinary sessions of Congress were formally opened on June first. His Excellency President Barros Luco read extracts from his annual message, a copy of which I enclose herewith.

After congratulating the country upon the satisfactory condition of its international relations, His Excellency spoke of the mediation of the Argentine, Brazil and Chile as follows:

The difficult situation produced between the United States and Mexico threatened to disturb the peace of America. Fortunately the unchangeable cordiality of our relations with Brazil and the Argentine Republic permitted the Governments of the three Republics to jointly offer their good offices, inspired by the high principles of humanity, in order to avoid the deplorable consequences of a war. The mediation, after being accepted by the nations interested, has received the universal sympathy of governments and peoples, who see in it a new and eloquent manifestation of the exalted spirit which governs the relations of the countries of the new continent.

The armistice agreed upon constitutes in itself a positive and beneficial result; and the noble attitude of the countries in conflict permits the predicting of a successful termination of the conferences which, at the present time, are being celebrated at Niagara Falls.

The following reference was made to the Tacna and Arica question:

After the internal situation of Peru has been arranged, the Government hopes that the negotiations, which have been paralyzed, will be renewed for resolving definitely the question which for so long a time has separated the two countries.

Other extracts from the message which may be of interest to the Department are:

The strengthening of the peace and cordiality of the relations of the peoples which form this continent, constitutes the most solid guaranty of its progressive development.

The International Conferences of the American Republics, which are held periodically, efficiently contribute to this purpose. The honor of being designated as the seat of the next Conference has been conferred upon our capital, and I am pleased to testify to our gratitude for this unanimous manifestation of the American Governments.

The Government of the United States has officially communicated to our Government the approval of the law which authorizes the elevation to the rank of Embassy of the Legation in Santiago. In a short time I hope to obtain your authorization to respond, by a similar diplomatic representation, to this demonstration of the cordial relations which bind us to the great American nation.

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The commercial development which will be produced on our coasts on account of the near opening of the Panama Canal, and the increase of international traffic through the port of Arica, due to the railroad to La Paz, made it necessary to modify to a certain extent the attributes of the Sanitary Station of the North. By agreement with the Superior Board of Public Hygiene, and in conformity with the provisions of the International Sanitary Convention of Washington in 1905, the regulations of that sanitary station were completely reformed.

The National Congress having approved at the beginning of the present year the participation of Chile in the Exposition of San Francisco, California, the preparatory work for such participation has been renewed with great activity by means of a committee in which are represented the National Societies of Agriculture, Mining, Manufacturing Development, and Propaganda Association of Nitrate.

1 have [etc.]

Henry P. Fletcher
.