723.2515/3301: Telegram
The Secretary of State to the Ambassador in Chile (Culbertson)
32. Your 43, March 17, 8 p.m. It is my feeling that the difficulty in reaching a prompt agreement may arise from the feeling in Chile that Peru will accept a port at Escritos. The position seems to be as follows:
President Leguia insists upon a port for Tacna, and with Chile’s permission sent engineers to make a survey of the coast and report if it would be possible to construct another port north of Arica. The coast was examined separately from a launch and by airplane by two American engineers who both arrived independently at the very definite conclusion that the only feasible port is at the San José River. A detailed investigation was then made there including soundings and an investigation of the bottom. After assembling all [Page 751] the data they made a comprehensive study of it and reported that a port could be made there for $3,500,000. President Leguia then presented this to Chile.
The Government of Chile replied that it would give Peru a dock, warehouse, customhouse, and railroad station in Arica and have the boundary line come to the sea at Escritos, or would give them $3,500,000 for building a port at Lluta. The Government of Chile apparently had no surveys indicating the feasibility of such a port. President Leguia replied that, according to his information, a port could not be built at Lluta but, if Chile could show that it could be built there for $3,500,000, he would accept, and he asked for the plans of the Chilean engineers. The Chilean engineers later admitted that a port could not be built at Lluta and suggested that one be constructed at Escritos, but so far have offered no evidence that competent studies had been made there which indicate the feasibility of such a port. After this the Foreign Minister in his memorandum to you definitely stated that Chile would not accept a Peruvian port south of the Lluta River. This was the first intimation received of such a position on the part of Chile. No such intimation was made by Chile when it gave permission for the engineers to visit Arica or during the time of their investigations over a period of some weeks or while they were preparing their report. The fact that Chile made no objection to the coming of the engineers and the making of the survey seemed to indicate that Chile was willing to discuss a port south of the Lluta River. Mr. Cady states definitely that a port cannot be constructed at Escritos and the Department of State has been advised by the president of the Frederick Snare Corporation that its other engineers at Lima, including a vice president of the corporation, hold the same opinion.
While a lighterage pier might perhaps be constructed further north, its cost and that of the breakwaters, together with the very extensive railroad construction necessary to bring the Tacna railroad to such a port, would be vastly more than $3,500,000. Therefore, should Peru accept a port further north, of which we have no assurance, it would presumably want the payment of $3,500,000 by Chile augmented to such a sum as may be required to meet the increased cost.
President Leguia countered Chile’s proposal by requesting evidence that such a port could be constructed for $3,500,000 and this has not been forthcoming and the American engineers say that it cannot be constructed for that sum. There is, therefore, a settlement possible by accepting the port of the San José River and a remote possibility, of which I have no assurance, that a settlement might possibly be reached if Chile would agree to construct the port further [Page 752] north whatever it might cost. We have no evidence that Peru would accept such a proposal nor have we been advised that Chile has agreed to pay the larger sum, whatever it might be.
You may discuss this matter fully with the Chilean authorities and report the result by cable.