File No. 723.2515/201.

The American Minister to Peru to the Secretary of State.

No. 435.]

Sir: I cabled the Department on the 17th the substance of the replies of the Argentine and Brazilian Governments to the inquiry directed to the capitals of the mediating Powers by the Peruvian Foreign Office, regarding their views with respect to the negotiations opened in Lima by Mr. Alfonso, the secret diplomatic agent of Chile, for the settlement of the Tacna and Arica dispute.

Subsequently, I cabled that the President of Peru had accepted the proposal made by Mr. Alfonso in the name of the President of Chile.

In reporting the details of these negotiations I have the honor to state that the inquiry directed by Mr. Porras to the Governments of the United States of America, Argentine, and Brazil to know “without delay openly and explicitly what she [Peru] may expect” from these countries in regard to the Tacna and Arica question was, I think, largely for the purpose of having a record, for future publication, to show that the Peruvian Foreign Office had discovered it could not hope for outside assistance in solving this question and was forced to make the best of the situation.

Mr. Alfonso had maps with a proposed line, which he exhibited; the Peruvian Government offered a different line, and finally it was decided that with these two lines as a basis an agreement as to the exact line and the amount of pecuniary compensation could be reached by discussion, and Mr. Porras notified Mr. Alfonso that his proposal in principle was accepted.

Mr. Porras told me that both Governments felt that it was very important for the success of this plan of settlement that it should be presented to the public as one emanating from a power mutually friendly to Peru and Chile, and that in accordance with this view Mr. Alfonso had suggested Great Britain should propose the settlement and that he had accepted this idea.

These matters having been decided, Mr. Porras mentioned that it would now be advantageous for Chile to quiet the anti-Peruvian agitation in Ecuador and Bolivia, and Mr. Alfonso smilingly bowed assent.

There is no question but Chile, by the difficulties she has created for Peru in Ecuador and Bolivia, has forced Peru into this negotiation. [Page 1206] At the same time, the Powers mediating the question between Peru and Ecuador have put such a moral pressure upon Chile that the policy of the latter in these countries was becoming more and more difficult, and she was compelled to offer a more moderate basis for settlement than would otherwise ever have been formulated.

There is no doubt in my mind but for the mediation, planned by the State Department, Peru would have soon found herself at war with Ecuador, Bolivia, and Chile, with a result little short of her destruction.

However this may be an agreement between Chile and Peru guarantees the success of the mediation.

I have, of course, done all that I could in an unofficial way to forward this settlement.

I have [etc.],

Leslie Combs.