723.2515/3357: Telegram
The Ambassador in Chile (Culbertson) to the Secretary of State
[Received 11 p.m.]
68. Today the Foreign Minister informed me that the Tacna-Arica negotiations were progressing favorably. Leguia approves [Page 783] the procedure that the basis of settlement when finally agreed upon be sent to the Chilean and Peruvian Ambassadors in the United States for discussion with the Department of State and then that the proposal of settlement be submitted by the President of the United States to Chile and Peru through the respective American Embassies in Chile and Peru.
The Foreign Minister is informing Leguia that Chile will concede very liberal free port privileges and control of the terminal buildings of the Tacna-Arica railway at Arica to facilitate Peruvian export import trade, but will not agree to nullify sovereignty over port property at Arica.
Chile agrees that the boundary shall be so fixed to include certain canals, water rights, and sulphur properties within Peruvian territory.31
Leguia desires that there be a provision in the treaty for the cancelation of old debt owed by Peru to Chile amounting with interest to thirty million pesos. Chile will agree to this, and also to a provision in the treaty or protocol for the establishment of a commission to settle private war claims. The President of Chile desires to announce definite settlement on May 21 next, and he suggests that all details be agreed to by May 15. Leguia stated that he had no objection to this.
Leguia requires details as to dismantling the Morro at Arica and the kind of monument to be erected there, all of which Chile will communicate. Leguia is anxious to have some reference made to this in the treaty or protocol.