723.2515/3218: Telegram
The Chargé in Peru (Hanna) to the Secretary of State
123. Department’s No. 80, October 29, noon. Last evening I delivered your message to President Leguia. He manifested regret because the United States would not participate in the administration of the territory in dispute, but stated that on October 28 the Chilean Ambassador had informed him that the Government of Chile refused to accept his proposal to neutralize the entire territory under the administration of the United States. He stated that the Ambassador then proposed that the territory be divided along a line 10 kilometers north of the railway from Arica to La Paz, the port of Arica to be under the administration of Chile. He stated that Peru is unable to accept this proposal which would transfer to Chile not only a large portion of Tacna but a portion of Tarata as well, and that Peru, of course, could not agree to surrender to Chile the port of Arica. He said that he was willing to make Arica a free port under neutral control, but he positively could not accept less, and [Page 671] would preferably permit the negotiations to fail because a less favorable solution would outrage Peruvian sentiment and would result in the overthrow of his Government.
He stated that if Chile would agree to make Arica a free port under neutral control, say of Uruguay and Venezuela, which have no boundary disputes with either Chile or Peru, he believes a way could be found to divide the balance of territory and adjust the remaining problems. With regard to the railway, he said that he objected to Chile’s insistence on retaining it, because it was constructed by Chile upon territory in dispute under the Treaty of Ancon, despite Peru’s protest made at that time. He stated, however, that Peru was willing to make a financial sacrifice and purchase the railway from Chile. The President has not yet given his answer to the proposal of the Ambassador.
The President seemed despondent. He seems to think that Chile is intransigent, especially with regard to the port of Arica. He thinks that the negotiations hinge on the disposition of that port. He thinks that they will fail if Chile refuses to accept some practical arrangement regarding it which will satisfy the national sentiment of Peru. It is my belief that he thinks that if such an arrangement can be agreed upon, he will find it possible to make reasonable concessions regarding the railway and the division of the territory.
- Telegram in two sections.↩