723.2515/3335: Telegram
The Ambassador in Peru (Moore) to the Secretary of State
[Received April 13—3 a.m.]
72. My number 70, April 11, 7 p.m. Engineer Seeley this afternoon filed with President Leguia his answer to the Chilean details of the proposed port at Yaradas which were submitted to the President yesterday by Ambassador Figueroa.
Seeley’s report reads as follows:
“April 12.
Dear Mr. President: Regarding the cable from Santiago to the Chilean Ambassador dated April 9th, which you gave me yesterday afternoon, I would comment as follows.
As stated in my memorandum of April 10th, there was no reason for discussing Ilo. It already has a port belonging to Peru and has no physical connection with Tacna.
In regard to changes deemed necessary by the Chilean engineers in the San José project and their statement as to cost, I believe the best answer is the one already given you; i. e., we will contract [Page 767] for the construction of this port and guarantee the physical results for approximately $3,500,000 as stated in our original report.
As to their statement regarding the Yaradas location, we have been unable to work out any plans for a port at that place which we could unreservedly guarantee and which would come within their estimated cost of $6,000,000.
We would respectfully suggest, Mr. President, that the Chilean Government be requested to send, as soon as possible, their project with detailed plans and specifications showing what they have in mind and the type of construction proposed. We would be only too pleased to examine these and make a report, sending them to New York to be examined by our engineers there and by other recognized authorities in New York with whom we are in almost daily contact, submitting to you their opinions and estimates of cost. We believe this would avoid further discussions and that it would be the quickest way of satisfying all concerned as to whether the proposed scheme is really feasible or otherwise and whether it would meet with your requirements.
Very respectfully yours, Frederick Snare Corporation, (Signed) G. P. Seeley, Junior, Vice President.”
President Leguia will request the Chileans to present their plans as soon as possible. Ambassador Figueroa just informed me that they are on their way and would arrive here in about 10 days.
Personally I think the expenditure of $6,000,000 for a port to take care of 1600 tons of freight (which was total tonnage of Tacna last year) is almost a financial crime.
From what the American engineers tell me and from what I learn from other Americans who have visited Tacna-Arica, the whole territory is almost worthless except in the small valleys surrounding the cities of Tacna and Arica. The whole situation reminds me of two baldheaded men fighting over a comb. However, pride is playing such an important part that a really practical and economic settlement will be hard to reach. I am using all my efforts for a solution and I believe that eventually something will be worked out.
From a purely commercial standpoint I believe Peru would be better off to accept the free port, customhouse, railroad station and pier offered by Chile with the addition of $6,000,000 for damages which I believe Chile would pay. On the other hand I think Chile would be commercially better off to accept the San José proposition. It may be possible that between these two propositions something can be worked out.
I am rather inclined to think a port at Yaradas is almost impossible for the reason that the Snare Corporation, who would naturally be most interested in securing the contract for its construction, state positively that a practical and proper port cannot be built there within the limits suggested.