723.2515/3209
Memorandum by the Assistant Secretary of State (White)
The Bolivian Minister, Señor Don Eduardo Diez de Medina, accompanied by Señor de la Barra, First Secretary of the Legation, called on the Secretary of State on Monday, October 8.
The Minister stated that his Government had been informed in Lima that diplomatic relations having been reestablished between Chile and Peru direct negotiations would now be carried on by those Governments with a view to settling the Tacna-Arica question, and the Bolivian Government was fearful that a settlement might be made without the participation of the United States and that there might be economic arrangements concluded at the same time which would be very unfavorable. The Minister stated that he had a book, written by the present Minister for Foreign Affairs of Chile shortly before he assumed office, in which the latter pointed out that, before there was an American representative in Bolivia of the trustees for the bond issue of 1922, Chilean products occupied the first place in the list of imports into Bolivia and that, since that time, American products have occupied the first place and Chilean products have dropped to third place, and that, therefore, in view of the very large and close commercial relations between the United States and Bolivia, no settlement involving Bolivia should be made in Washington.
The Secretary replied that he knew of no exclusive commercial agreement under contemplation between Chile and Peru although, of course, it had been stated that a commercial treaty would be concluded when the Tacna-Arica question was settled. The Minister stated that he did not have in mind an exclusive commercial agreement but that Chile and Peru might make an agreement giving one another lower tariff rates or even putting certain goods on the free list and that this was looked upon with concern in Bolivia. The Secretary stated that he did not know that there was any conflict between Bolivian commerce on the one hand and Chilean and Peruvian on the other; that Chile imports mostly cotton and sugar from Peru which are not produced by Bolivia and, on the contrary, Peru takes from Chile mostly fruits and nitrates which also are not produced in Bolivia. The Minister replied that that was quite true; that what he had referred to was the unfavorable position in which the United States would be put in trade with these countries. The Secretary immediately replied that, in a political controversy of the importance of that of Tacna-Arica, he certainly would not let any question of self-interest on the part of the United States enter into [Page 667] it. In fact, he did not think that American commerce would be adversely affected but, even so, he was endeavoring to settle the question on its merits and to be helpful to the sister Republics concerned. He was not concerned with trying to obtain any material advantage for the United States in settling it nor would he let any possible self-interest prevent a settlement and he could not and would not take any measures to prevent Chile and Peru from arriving at a settlement solely between themselves.
The Minister stated that he understood this but that he was very anxious, of course, to see that nothing happened to the detriment of Bolivia. … The Secretary said that he trusted nothing of this sort would come about but that the Minister of course must understand that he is unable to bring Bolivia into the negotiations. As the Secretary had said at the outset of this matter when Bolivia had asked to come into the good offices, the Tacna-Arica question was a matter which had been submitted by Chile and Peru for the arbitration of the United States and then to the good offices of the Secretary of State and, unless he were given fuller authority in the settlement or were requested by the two parties at interest, he could not bring a third party into the negotiations. The Minister stated that he took note of what the Secretary said and that he very much regretted that the last hope of Bolivia was denied her as, without the support and friendly aid of the United States, she could do nothing.
The Secretary replied that the friendly support and interest of this Government in Bolivia had never been and was not now withdrawn. The Secretary was merely stating the facts as they are and when he had been given an opportunity to make a suggestion for a settlement” he had suggested that the territory be given to Bolivia. The Secretary thought and still thinks that this is the best solution of the whole matter and that, if both parties do not wish to give the entire territory to Bolivia, at least they should give a zone of land including the railroad and city and port of Arica.
The Minister expressed his great gratification and said that in order that there might be no misunderstanding he would summarize his position as follows: He had not and of course could not ask that the United States Government do anything to prevent a direct settlement between Chile and Peru. On the other hand, the only strength that Bolivia has is in the justice of its case and in the friendly support of the United States, and that should this support be withdrawn from Bolivia it would be without remedy. Bolivia would welcome a settlement between Chile and Peru … The Minister was very gratified that the friendly interest of the United States [Page 668] Government in Bolivia continued and he wanted to ask that the position and desires of Bolivia should not be forgotten if a favorable opportunity should arise to do something in Bolivia’s behalf. The Secretary told the Minister that of course he would be glad to bear this in mind.