723.2515/3340: Telegram
The Ambassador in Chile (Culbertson) to the Secretary of State
[Received 3:20 p.m.]
62. My 31, March 9, 7 p.m. The Government of Chile has received a telegram from its Ambassador in Peru reporting a conversation with President Leguia. President Leguia expressed lack of confidence [Page 770] in the possibility of constructing a port at Las Yaradas, whereupon the Chilean Ambassador asked him to speak frankly and definitely regarding the solution of the Tacna-Arica question. President Leguia replied as follows:
“I accept the proposal of the memorandum which you recently presented to me, namely, the concession to Peru within the Bay of Arica of a pier, customhouse, and station for the Arica-Tacna railway all constructed at the expense of the Government of Chile and where Peru will enjoy complete freedom of the port. In addition to this Chile must pay $6,000,000 in cash to Peru. The boundary line will commence at a point on the coast 10 kilometers north of Arica and run parallel to the railway line from Arica to La Paz up to kilometer 160. From this point to kilometer 190 the line must include in the Peruvian territory the Usuma [Uchusuma?] and Aguada Canals and Laguna Blanca. President Leguia added that it was not necessary to make any declaration about new railways and the concession of a port of the territory to a third party; but with regard to the last point, however, if Chile insists, Peru will accept it.”
Finally, President Leguia stated that as a condition to this agreement the proposition must come from the Government of the United States inviting both countries to accept. President Leguia desires that this entire proposition be kept strictly secret until the matter is settled.
Although I have no official statement from the Foreign Minister, my impression is that the proposition will be acceptable to the Government of Chile.