722.2315/941

The Ambassador in Peru (Dearing) to the Secretary of State

No. 4622

Sir: Referring to despatch No. 4594 of June 9, 1936,10 and to previous reports concerning the Peruvian-Ecuadoran boundary situation, I have the honor to report that Dr. Homero Viteri Lafronte, the Ecuadoran Minister to Peru, recently has returned to this capital from a visit to Quito. It is clear that Dr. Viteri some time back became convinced that if any progress was to be made in the boundary negotiations, it would be necessary for Ecuador to yield to Peru’s [Page 114] insistence that before going to Washington some previous agreement must be reached between the two governments as to the basis on which any eventual arbitration should take place, and thus also the basis for any negotiations preceding arbitration in Washington. While Dr. Carlos Concha was Minister of Foreign Affairs in October of last year, he said that Peru would continue to seek arbitration on a basis of legal rights and titles (de derechos), and would not consent to any transfer of negotiations to Washington until the character of the arbitration had been determined.

With this in mind, Dr. Viteri went to Quito in order to present the situation to his Government and with the intention of procuring a change of front on the part of Ecuador. Apparently he has succeeded, for he states that the Ecuadoran Government has granted authorization for the removal of the boundary negotiations from Lima to Washington, with the agreement that final arbitration of the boundary will be on the basis of legal rights and titles (as demanded by Peru). It will be recalled that the Ecuadoran Government has until now held out for discussions and arbitration on a basis of equity and existing conditions.

Immediately upon his return to this capital Dr. Viteri began his conversations with the Minister of Foreign Affairs, and he states that the Government of Peru still insists that definite agreement be reached here in Lima concerning the basis for future discussions and arbitration. However, apparently in order to save face, Dr. Viteri is now endeavoring to persuade the Peruvian Government to accept the formula that the two Governments will constitute their respective delegations in Washington where arbitration on a basis of legal titles will be agreed upon. In other words, Dr. Viteri is endeavoring to have the negotiations transferred to Washington on the promise by Ecuador that any eventual arbitration will be on the basis desired by the Government of Peru. The Minister of Foreign Affairs of Peru still is holding out for definite agreement here so that direct negotiations as well as arbitration in Washington will be upon the basis of legal claims. Dr. Viteri seems optimistic with respect to the reaching of an agreement, and it would appear that if the Government of Peru does not yield, the Government of Ecuador will, so that in any case the direct negotiations will be continued in Washington.

It will be seen that this represents a concession on the part of Ecuador, but one which the Government of Peru considers only reasonable. Dr. Viteri mentioned that the idea has gained ground in Peru that Ecuador wishes to avoid arbitration and that while he was in Quito, he found it necessary to persuade his Government that as they have faith in their contentions and their rights to the territory in dispute, they must be willing to have the matter settled on the basis of [Page 115] legal titles and also to go to arbitration in case direct negotiations in Washington do not lead to complete settlement. He added that it is hardly to be expected that the two Governments can agree on the whole boundary line by direct negotiations, but that he feels sure they can agree on parts of the territory mutually recognized by each as belonging to the other, thus leaving only a portion of the boundary to be fixed by arbitration. Dr. Viteri mentioned that such feeling as existed in his country in opposition to arbitration was due to sad experience and it was necessary for him to show that element that the unsuccessful arbitration by the King of Spain was quite a different thing from what may be expected in the Republic of the United States; it being his belief that the advisers of the king in the monarchy were corrupt and subject to mercenary consideration, while this is out of the question with the Government at Washington.

Dr. Viteri mentioned that when it was supposed that President Lopez of Colombia was going to visit Quito and Lima, it had been hoped that he might lend his auspicious presence to favoring the signing of an agreement between Ecuador and Peru, but that now it hardly seems probable that President Lopez will be able to visit these countries during the present year and naturally the signing of the agreement should not be put off until next year in the expectation that he may be able to come later. Dr. Viteri seemed to feel that the agreement to take the negotiations to Washington might be reached within the next two months. He recognizes the fact that Dr. Alberto Ulloa, the present Minister of Foreign Affairs, realizes that he is in office for only a comparatively short time, since the presidential elections are scheduled to be held in Peru on Sunday, October 11, and the new president presumably will take office in December. However, he believes that Dr. Ulloa is ambitious to have as much to his credit as possible and he hopes that the two Governments may actually have their representatives in Washington and carrying on the negotiations before December of this year. For some reason which I do not quite understand, Dr. Viteri seemed to feel that the appointment of the Peruvian delegates to Washington would be of a permanent nature and not subject to replacement following the change of administration here. On the other hand, he mentioned that Dr. Concha had refused to be one of the Peruvian delegates because he wanted a more permanent position. He mentioned that he understands Peru will appoint as its three delegates, Dr. Arturo Garcia Salazar, at present Peruvian Minister at Quito, and the two present Peruvian delegates to the League of Nations, Dr. Francisco Tudela y Varela and Dr. Victor Andrés Belaúnde.

It appears that the situation along the boundary now is tranquil and the Ecuadoran members of the Mixed Commission for the purpose [Page 116] of preparing a complete map of the Zarumilla region (see page 2 of despatch No, 4518 of April 25, 193611) now are on the ground. The Peruvian members of the Mixed Commission are scheduled to arrive there about July 3rd, and it is expected that the survey of that region will begin immediately.

Respectfully yours,

For the Ambassador,
R. M. de Lambert

Secretary of Embassy
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