723.2515/792: Telegram
The Chargé in Peru ( Sterling ) to the Secretary of State
[Received December 23—9:37 a.m.]
89. Arbitration is not absolutely repudiated in the Chilean rejoinder to the Peruvian reply, but it is stated that the two countries [Page 257] should first agree on the bases for taking the plebiscite. Peru’s reply will be that this point is to be decided by arbitration.
So far the tone of the communications seems to give hope for continued negotiations. Bolivia, however, has intervened both in Santiago and here, to have herself included in the discussion; she contends that if Peru’s 1–year arbitration, which she approves, be impossible, there should be convened a conference of the three countries, attended by a commissioner from the United States. It is the opinion of the Foreign Office here that to include [Bolivia] in the negotiations at the present time will complicate the question and render a settlement more difficult.