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Señor Calderon accepted this proposal, but your excellency declined it, chiefly for two reasons; firstly, because to refer such a question at this time to a foreign ruler would be practically to place the results of the war in the hands of a foreign state, which would be an infringement upon the sovereignty of Chili; and secondly, because to admit the possibility of a decision against Chili, would be to yield all claim upon the district in question, a claim which she has constantly made since the conference of Arica.

Sixth. I then proposed to Señor Calderon that Tacna and Arica should be ceded to Bolivia. This proposal he declined, and it was not presented, therefore, to your excellency.

Seventh. I then proposed that the following question be submitted, not to the head of a foreign Government, but to a diplomatic representative friendly to both parties, who should simply be regarded in the light of an impartial referee:

"Shall Chili have the right to purchase the territory embracing Tacna and Arica for $9,000,000, or shall she have military occupation of the said territory for a period of fifteen years, being obliged to evacuate it at the expiration of that period?"

As this proposition removed your excellency's objection to a foreign ruler, and also secures either the purchase of the territory or its occupation for fifteen years, your excellency consented to accept it, in substance, as the basis of a negotiation. Señor Calderon also consented to it, and I rejoiced in the belief that we were to have peace at last.

When we came to the arrangement of details of procedure, Señor Calderon made certain stipulations to the effect, first, that a clause should be inserted in the treaty, that Chili should pay all of the legitimate debts of Tarapaca, and "make arrangements conducing to a compliance with the contracts of the Peruvian creditors "; secondly, he proposed making a protocol with the American minister at Santiago, setting forth the terms of the agreement, after which he was to be put in liberty and proceed to Arequipa; he was then to assume direction of his Government, and nominate a plenipotentiary in Lima, to sign with the Chilian representative a truce for six months; thirdly, after the signing of the truce, an election was to be held in Peru for members to a new Congress, to deliberate upon the proposed terms of peace, which, if ratified by the Congress, were to be embodied in a formal treaty to be signed by authorized plenipotentiaries on both sides, at Lima; fourthly, in case of non-ratification by the Congress, notice thereof to be given to Chili, who might resume hostilities thirty days after receiving it.

In defense of these stipulations, Señor Calderon urged that Arequipa was the capital of Peru, and that he would have to observe the form of again assuming direction of the Government; that to hold the Congress in Lima

would be to place it under the military control of a foreign power, and that he himself would be as much a prisoner in Lima as in Santiago. In order to act freely they must all be outside the Chilian lines. He also claimed that six months was a very short time in which to hold an election, &c.

Your excellency declined all these stipulations. First. You said that there was no need to make any stipulation in the treaty concerning the Peruvian debt, as the responsibility of your Government was fixed by law and by the guano decree of February last, under which $240,000,000 of that indebtedness had been arranged for with the bondholders. Second. That instead of going to Arequipa, Señor Calderon must proceed to Lima, sign a preliminary treaty, convoke the Magdalena legislature, and in forty-five days confirm or reject the treaty. Your excellency proposed withdrawing the Chilian troops temporarily to Callao in order to leave Lima free to the legislature. Third. Your excellency declined a truce of six months, as it would lose to Chili the advantage of her present situation and expose her troops to the attacks of guerillas, who would not respect any truce.

In the discussion which followed neither your excellency nor Señor Calderon felt disposed to recede from the position taken, and the promised peace failed.

I believe I have given the substantial facts of the case in the foregoing statement, though if I have made any error I shall be glad to have your excellency correct it.

I embrace, &c.,

C. A. LOGAN.

Peace Protocol Between Novoa and Iglesias 1

I bind myself formally and solemnly to celebrate with the Republic of Chili a treaty of peace, as soon as the minister plenipotentiary of that country recognizes me in the name of his Government as President of Peru. (I will sign such peace) on the following conditions:

1st. Unconditional and perpetual cession to Chili of the department of Tarapaca, as far towards the north as the Quebrada de Camarones, this territory passing in consequence under the absolute sovereignty of Chili.

2d. The territories of Tacna and Arica, actually in the possession of Chili, will be subject to the legislation and laws of Chili for the term of ten years, reckoning from the day when the treaty of peace shall be celebrated. This term once elapsed, a plebiscite will be convoked to decide by popular vote

1 Inclosure in despatch of Mr. Logan to Secretary Frelinghuysen, July 2, 1883. U. S., Foreign Relations, 1883, p. 117.

whether these territories shall remain under the sovereignty of Chili or return to that of Peru. That one of these two nations, in whose favor the definite annexation shall be decided, shall pay the other 10,000,000 silver pesos in Chilian coin or in Peruvian soles of equal fineness.

A special protocol shall establish the form under which the plebiscite shall take place, and the term in which the 10,000,000 pesos shall be paid by the country remaining master of Tacna and Arica.

Treaty of Peace and Friendship Between Chile and Peru. Signed at Ancon, October 20, 1883 1

La República de Chile, de una parte, i de la otra la República del Perú, deseando restablecer las relaziones de amistad entre ámbos paises, han determinado celebrar un Tratado de paz i amistad i al efecto han nombrado i constituido por sus Plenipotenciarios a saber:

S.E. el Presidente de la Republica de Chile a don Jovino Novoa, i S.E. el Presidente de la Republica del Perú a don José Antonio de Lavalle, Ministro de Relaciones Esteriores i a don Mariano Castro Zaldívar.

Quienes, despues de haberse comunicado sus Plenos Poderes, i de haberlos hallado en buena i debida forma, han convenido en los artículos siguientes:

ART. PRIMERO. Restablécense las relaciones de paz i amistad entre las 1 Martens, N. R. G., 2d series, vol. 10, p. 191. Papers, vol. 74, p. 349. Ratifications exchanged

The Republic of Peru on the one part, and the Republic of Chile on the other, being desirous of re-establishing friendly relations between the two countries, have resolved to conclude a Treaty of Peace and Friendship, and for that purpose have named as their Plenipotentiaries, that is to say:

His Excellency the President of the Republic of Peru, Don José Antonio de Lavalle, Minister of Foreign Affairs; and Don Mariano Castro Zaldivar;

And his Excellency the President of the Republic of Chile, Don Jovino Novoa;

Who, after having communicated to each other their full powers, and found them to be in good and due form, have agreed upon the following Articles:

ARTICLE 1. Relations of peace and friendship are re-established beTranslation from British and Foreign State at Lima, March 28, 1884.

Repúblicas de Chile i del Perú. ART. SEGUNDO. La República del Perú cede a la República de Chile, perpétua e incondicionalmente, el territorio de la provincia litoral de Tarapacá, cuyos límites son, por el norte la quebrada i rio de Camarones; por el sur la quebrada i rio del Loa; por el oriente la República de Bolivia i por el poniente el mar pacífico.

ART. TERCERO. El territorio de las provincias de Tacna i Arica, que li mita por el norte con el rio Sama, desde su nacimiento en las cordilleras limítrofes con Bolivia hasta su desembocadura en el mar, por el sur con la quebrada i rio de Camarones, por el oriente con la República de Bolivia, i por el poniente con el mar Pacifico, continuará poseido por Chile i sujeto a la lejislacion i autoridades chilenas durante el término de diez años contados desde que se ratifique el presente Tratado de paz. Espirado este plazo, un plebiscito deciderá, en votacion popular, si el territorio, de las provincias referidas queda definitivamente del dominio i soberanía de Chile, o si continúa siendo parte del territorio peruano. Aquel de los dos paises a cuyo favor queden anexadas las provincias de Tacna i Arica, pagará al otro diez millones de pesos moneda chilena de plata o soles peruanos de igual lei i peso que aquella.

Un protocolo especial, que se con

tween the Republics of Peru and Chile.

ART. 2. The Republic of Peru cedes to the Republic of Chile, in perpetuity and unconditionally, the territory of the littoral province of Tarapaca, the boundaries of which are: on the north, the ravine and River Camarones; on the south, the ravine and River Loa; on the east, the Republic of Bolivia; and on the west, the Pacific Ocean.

ART. 3. The territory of the provinces of Tacna and Arica, bounded on the north by the River Sama from its rise in the Cordilleras bordering upon Bolivia, to where it flows into the sea, on the south by the ravine and River Camarones, on the east by the Republic of Bolivia, and on the west by the Pacific Ocean, shall remain in the possession of Chile, and subject to Chilean laws and authorities, during the term of ten years, to be reckoned from the ratification of the present Treaty of Peace. At the expiration of that term a plebiscite shall, by means of a popular vote, decide whether the territory of the provinces referred to is to remain definitively under the dominion and sovereignty of Chile, or continue to form a part of the Peruvian territory. Whichever of the two countries in whose favour the provinces of Tacna and Arica are to be annexed shall pay to the other 10,000,000 dollars in Chilean silver currency, or Peruvian soles of the same standard and weight.

A special Protocol, which shall be

siderará como parte integrante del presente Tratado, establecerá la forma en que el plebiscito deba tener lugar i los términos i plazos en que hayan de pagarse los diez millones por el pais que quede dueño de las provincias de Tacna i Arica.

ART. CUARTO. En conformidad a lo dispuesto en el supremo decreto de 9 de febrero de 1882, por el cual el Gobierno de Chile ordenó la venta de un millon de toneladas de guano, el producto liquido de esta sustancia, deducidos los gastos i demas desembolsos a que se refiere el artículo 13 de dicho decreto, se distribuirá por partes iguales entre el gobierno de Chile i los acreedores del Perú, cuyos títulos de crédito aparecieren sustentados con la garantía del guano.

Terminada la venta del millon de toneladas a que se refiere el inciso anterior, el Gobierno de Chile continuará entregando a los acreedores peruanos el cincuenta por ciento del producto líquido del guano, tal como se establece en el mencionado articulo 13, hasta que se estinga la deuda o se agoten las covaderas en actual esplotacion.

Los productos le las covaderas o yacimientos que se descubran en lo futuro en los territorios cedidos, pertenecerán esclusivamente al Gobierno de Chile.

ART. DÉCIMO CUARTO. El presente Tratado será ratificado i las ratificaciones canjeadas en la ciudad de Lima cuanto ántes sea posible dentro de un

considered an integral part of the present Treaty, will establish the form in which the plebiscite is to take place, and the conditions and periods of payment of the 10,000,000 dollars by the country which remains in possession of the provinces of Tacna and Arica.

ART. 4. In conformity to the provisions of the Supreme Decree of the 9th February, 1882, by which the Government of Chile ordered the sale of 1,000,000 tons of guano, the net proceeds of that sale, after deducting the expenses and disbursements referred to in Article 13 of the said Decree, shall be equally divided between the Government of Chile and those creditors of Peru whose claims appear to be guaranteed by the guano.

The sale of the 1,000,000 tons referred to in the preceding paragraph being completed, the Government of Chile shall, as provided for in Article 13, continue to hand over to the Peruvian creditors 50 per cent. of the net proceeds of the guano until the debt be extinguished or the guano beds actually worked be exhausted.

The proceeds of the guano beds which may hereafter be discovered in the ceded territories shall belong exclusively to the Government of Chile.

ART. 14. The present Treaty shall be ratified, and the ratifications exchanged as soon as possible within the maximum term of 160 days,

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