723.2515/3250

Memorandum by the Chief of the Division of Latin American Affairs (Morgan) of a Conversation Between the Secretary of State and the Chilean Ambassador (Davila), December 31, 1928

The Secretary explained to the Ambassador the recent correspondence between Ambassador Moore and the Department relative to the sending of a representative by President Leguia to examine the port of Arica and vicinity to ascertain if another port could be established north of and near the port of Arica, or if a small portion of the north end of the Arica port would meet the requirements of Peru for an outlet from Tacna. The Secretary said that he had not wished Colonel Moore to go on this mission and had so informed the Ambassador. Now President Leguia desired to send Mr. Ralph Cady, chief engineer of the Frederick Snare Corporation, if permission could be obtained from the Chilean Government. Ambassador Davila after some hesitation said that he thought this could be arranged and that he would telegraph his Government accordingly. He said, however, that he thought it would be impossible to set aside a part of the port of Arica, as this port was too small. He also said that Chile planned to spend sixty million pesos in [Page 723] developing the port of Arica, and it seemed unnecessary for Peru to go to the expense of developing a separate port. He thought it would be better, if anyone went, that it should be Mr. Cady rather than Colonel Moore. The Secretary said he hoped that the Chilean Government would not raise any objection and would give Mr. Cady all facilities to make his investigation, in the interest of justice and the settlement of the Tacna-Arica problem. The Ambassador said that he thought it would be best that Mr. Cady should not make any public announcement of the purpose of his visit.

Referring to the Chilean Ambassador’s proposal for a settlement of the Tacna-Arica problem, the Secretary pointed out that the Chilean line reached the ocean ten miles north of Arica. He thought this was pretty far, and saw no reason why the line should not be drawn down so as to meet the ocean much nearer the city. He thought this would be much more acceptable to Peru. The Ambassador said he understood that the line could not be drawn very close to the city without leaving the workshops of the Arica-La Paz Railway in Peru. After consulting the maps of the city the Secretary and the Ambassador thought that possibly a line could be drawn around the workshops and down between the Arica-Tacna and the Arica-La Paz Railways so as to reach the ocean quite near the city of Arica. This could not be decided with certainty as the workshops were not shown on the maps which were available for consultation.

Morgan