723.2515/780: Telegram
The Chargé in Peru ( Sterling ) to the Secretary of State
[Received December 16—10:10 a.m.]
84. In continuation of my telegram number 82, December 13, 11 p.m. Having received confirmation of authenticity of telegram, I saw the Minister for Foreign Affairs this morning. He stated that he would shortly call together the members of the committees of foreign affairs of both houses of Congress to discuss whether any reply should be sent to Chile and if so its tenor. He would inform me immediately of the decision. … I believe a reply, but not direct, will be made repudiating the invitation to reopen negotiations on the proposed bases giving reasons therefor and stating that the only possible solution is arbitration.
Press despatches of a few days ago emanating from Santiago accuse Peruvian Government of not allowing Chileans or Chilean products to enter Peru and of causing destruction of Chilean irrigation works on the frontier. A despatch from Chile is also carried in this morning’s papers that clash has occurred between Peruvian [Page 252] and Chilean troops. All of these reports are absolutely denied by the Minister of Foreign Affairs and Minister of War. The former states that these inventions were published to prepare the way for the Chilean telegram—to make it appear to the public in Chile that by offering to renew negotiations the Government is endeavoring to end an intolerable state of affairs. Furthermore as regards the telegram, that Chile being certain that Peru will either not reply or will repudiate negotiations on the proposed bases, is preparing the ground to conduct a unilateral plebiscite.
Press comment has been confined mostly to bitter criticism of Chile for sending its communication directly to a Government which had broken relations with her and to the impossibility of accepting her invitation in view of past acts.
In an interview given today by the President to the United Press he declared that Chile’s offer cannot be accepted on the proposed bases. Chile’s broken faith, the deportations and changed conditions allowed Peru only one course—arbitration. The incredible success of the Disarmament Conference had established the leadership of the United States more firmly than ever and he hoped for arbitration under American auspices. Peru was agreeing with Chile in a desire of a solution; her cards were all on the table and he hoped Chile would respond in like fashion. The tenor of the interview does not close the door to further negotiations.