723.2515/979a: Telegram
The Secretary of State to the Chargé in Peru (Sterling)
50. This morning the newspapers print an Associated Press comment on the Chilean-Peruvian conference which states that a communication [Page 493] from their Government had been received by the Peruvian delegation which “fell short of a complete acceptance of the compromise plan.” The Peruvian Ambassador has made no official communication to the Department but it has reason to believe that the Associated Press comment is correct and that President Leguia is unwilling to accept the suggestion which I made in an unofficial capacity. My suggestion was that the provisions of article 3 of the Treaty of Ancón which have not been fulfilled should be submitted to arbitration. Should the arbitrator decide that a plebiscite be held, he shall also establish the terms for holding the plebiscite. If, on the other hand, he should decide against the holding of a plebiscite, then the Governments of Chile and Peru are to agree to enter immediately into negotiations to determine the final status of the disputed territory.
You are instructed to see President Leguia and with the utmost discretion make it clear to him that my purpose in making this suggestion was (1) that questions relative to a plebiscite be eliminated for all time from the discussion, and (2) that the way be paved for an immediate settlement of the question through friendly negotiation, should the decision be adverse to holding a plebiscite.
My reason for mentioning this is the rumor which has reached me that President Leguia believes that division of the territory between the two countries is the plan entertained by this Government. You may assure the President definitely and categorically that no plan relative to the ultimate disposal of Tacna and Arica has been prepared either by this Government or by me personally, and that the disposition of the territory in the contingency supposed, under the suggestion I have made, would be a matter for agreement.
You may add that I am convinced that the suggestion which has been submitted is in the interest of both Chile and Peru, and carries both countries a step forward toward the final solution.