423.11 L 23/297
Memorandum by Mr. Hallett Johnson of the Division of
Latin American Affairs, Department of State
[Washington,] January 10,
1920.
A memorandum is attached herewith giving the origin and early history of
the Landreau claim. As is shown by the negotiations carried on in 1912
and 1913, Peru has in effect admitted certain liability, and the method
of adjusting the claim is really the only matter now requiring
settlement. The negotiation began with the admission of Peru of a
liability to the American claimants. (See Memorandum of February 5,
1914, File No. 423.11 L 23/253 1/2 and 423.11 L23/244a.10)
During the years 1912 and 1913 negotiations were carried on for the
conclusion of a protocol and several draft protocols proposed by the two
governments were considered.
On November 15, 1913 an instruction10 was sent to Minister McMillin enclosing a copy of a
proposed protocol of September 21, 1912,10 and instructed him to state that the United
States expected it to be used as a basis for arbitration.
In a telegram from Peru dated January 29, 191410 the Minister reports no
progress toward obtaining acceptance of the protocol for arbitration
owing to so many changes in the portfolio of Foreign Affairs of
Peru.
On December 7, 1919 a telegram10 was received from the American Minister stating that
a new protocol, following practically the same lines of the others, had
been received from the Minister of Foreign Affairs which proposed to
submit the question, re settlement of Landreau
case, to The Hague Tribunal.
On December 10, 1919 a despatch10 was received from the American Minister at Peru
enclosing a note from the Minister for Foreign Affairs, in which was
enclosed a protocol, which, in the opinion of the Peruvian Government,
may serve as the text for the arbitral convention in the final
disposition of this claim.
[Page 672]
[Enclosure]
During the years of 1844–1859, John T[héophile] Landreau, a Frenchman
domiciled in Peru, made extensive explorations along the coasts and
adjacent islands of that country and that in the course of these
explorations he discovered large and valuable deposits of guano;
that finding himself financially crippled because of the
expenditures incident to these explorations, he applied, in 1858, to
his brother, John C[elestine] Landreau, then residing in Louisiana,
U.S.A., for financial assistance, which assistance was granted by
his brother John C., who in return for this assistance was to share
equally with John T., any reward which the Peruvian Government might
allow for these discoveries.
In 1865, John T. after having ineffectually attempted to secure a
recognition under the laws of Peru of his right to compensation for
his discoveries, entered into a contract with the Government of Peru
by which Peru, in terms of its own choosing, stipulated to pay to
Landreau an average of six per cent of the net proceeds of the first
five million tons of guano shipped from the deposits of guano
discovered by him; that the consideration, upon Landreau’s part, was
the furnishing to the Peruvian Government of a list of his
discoveries, and that list was furnished; that in making this
contract John T. acted in two capacities, —as a principal (for
himself), and as an agent for an undisclosed principal (his brother,
John C.), and that Peru has since had full and repeated notice of
the American interest in the contract then made with the Peruvian
authorities. The records also show that in 1868 the Peruvian
Government sought illegally to repudiate this contract of 1865; that
beginning with 1869–1870 that country made extensive shipments of
guano from the Landreau deposits, the shipments apparently equalling
and in all probability far exceeding the five million tons
stipulated in the contract; and that it then neglected and refused
and has ever since neglected And refused, though repeatedly
requested so to do, to pay to the American claimants their share of
the proceeds of the guano so sold.
The essential facts set forth above have been admitted by Peru in the
governmental order that accompanied the settlement which that
Government made with J. T. Landreau in 1892. They not only admitted
that Landreau had made important discoveries, but gave figures as to
the amount of guano shipped from them. This order Also states that
the contract of 1865 was valid; that large sums were due under the
contract; that Landreau had exhausted his remedies before Peruvian
Tribunals, and that therefore that clause of the contract which
forbade an appeal to diplomatic intervention was nullified and the
matter was ripe for consideration by the Foreign Offices of the two
Governments.
[Page 673]
The Peruvian Government had notice of the American interest, as shown
by the fact that in 1874 and again in 1877 the Peruvian Foreign
Office acknowledged the receipt of documents expressly setting forth
the American interest in the Landreau claim, the instrument
transmitted in 1877 being a copy of a contract by which the Landreau
brothers readjusted their respective interests, and by the further
fact that from 1874 to 1890 the matter of the American interests in
the Landreau claim was, through, diplomatic channels, otherwise
repeatedly called to the attention of the Peruvian Foreign Office by
the American representative.
The Department was unable to assent to the contention of the Peruvian
authorities that the settlement of 1892 with J. Theophile Landreau
was to be regarded as a liquidation of the entire Landreau claim,
and that, therefore, Peru’s recognition and satisfaction of the
American claimants in this case would amount to a double payment of
a single claim. On the contrary, the Department insisted that as the
Peruvian Government had been repeatedly informed of the existence of
the American interest by documents deposited in the archives of the
Peruvian Foreign Office, it was not competent for that Government
and J. Theophile Landreau to enter into any settlement of the
Landreau claim that could be legally or equitably regarded as a
satisfaction of the American interests. There is nothing in the
records to show that either party was or pretended to be authorized
to represent in the settlement of 1892, this interest which the
Peruvian Government is seeking to bar.
