723.2515/980: Telegram

The Secretary of State to the Chargé in Peru (Sterling)

[Paraphrase]

51. Legation’s 62, July 3, 2 p.m. Please say to President Legufa that these are the advantages of the suggestion which has been made:

1.
There will probably be no agreement if it is not accepted, and this would be most serious. Chile would be left in possession, and she would have the advantage of being able to assert that she had made an important concession and had abandoned the position hitherto held, by offering to arbitrate the question whether or not a plebiscite should be held.
2.
Great progress would be made by having eliminated a most important part of the controversy, if the arbitrator should decide that no plebiscite should be held. Without the settlement of this point, nothing could be done as to the disposition of the disputed territory.
3.
A new situation calling for direct negotiations would develop, if the possibility expressed in the above paragraph were to become a fact. Chile would not be in a better position, in my opinion. In the event supposed, the long-standing question would, on the contrary, have been decided against her contention. Although she would be left in possession, the basis on which she now asserts her title would have ceased to exist, and it would be imperative to reach an agreement as to the disposition of the disputed territory.
4.
It is at present impracticable to insist that, if no plebiscite be held, the ultimate disposition of the territory should be arbitrated; a proposal of this nature would be too indefinite, for there are no standards or principles which could be invoked. The case would then be precisely one where it could be said that the parties to the controversy should have the opportunity to undertake a settlement by direct negotiations, as a new situation had been created.
5.
The present alternatives are the following: (1) the complete failure of the present conference, or (2) an arrangement which will, at the very least, assure an important step forward and will constitute the best disposition of the matter obtainable at this time. In the first instance, the Government of Peru can not fail to recognize the serious results of a failure of the conference.

If you desire, you may give President Leguia a paraphrase of the above five points, taking care not to omit any of the qualifications stated.

Hughes