723.2515/3337: Telegram
The Ambassador in Chile (Culbertson) to the Secretary of State
[Received 9:33 p.m.]
61. My 59, April 9, 10 a.m. [p.m.] Referring to the Chilean proposal summarized in the above telegram, President Leguia is said to have replied that the Tacna-Arica question would be virtually settled if the Government of Chile will obtain a guarantee to construct a port at Las Yaradas from an American engineering concern. The Government of Chile is now consulting the J. G. White Engineering Corporation and other American concerns, all of which are willing to guarantee the construction of the port. Ulen and Company and Fred T. Ley and Company, working together, offer to construct and guarantee the port on a cost plus basis. While the Government of Chile has now fixed the amount which it is willing to pay at $6,000,000 more or less, I feel confident that if money becomes the only question standing in the way of settlement, Chile will pay.
I am not pressing the Foreign Minister in any way. As a matter of fact, I have not seen him personally for several days in view of the fact that direct negotiations appear to be progressing nicely.