723.2515/3301: Telegram

The Ambassador in Chile (Culbertson) to the Secretary of State

43. The following points are suggested unofficially for consideration in preparing the joint declaration of Chile and Peru:

1.
The boundary between Chile and Peru will be fixed parallel to the Arica-La Paz railroad and 10 kilometers, more or less, north of it.
2.
All government and municipal property north of this boundary will be turned over to Peru without charge.
3.
Chile will pay to Peru $3,500,000 United States currency, which Peru may use, if she so desires, to build a port at any point selected by her engineers at or north of Escritos and to connect the Tacna railroad therewith.
4.
Except as provided for in the treaty of settlement, Chile and Peru agree not to extend or change the course of railroads under their respective jurisdiction in the Provinces of Tacna and Arica.
5.
Chile and Peru agree never to alienate to a third party all or any portion of their respective parts of the Provinces of Tacna and Arica without the consent and approval of the other.
6.
If Peru decides to continue to maintain railway connections between Tacna and Arica, Chile will grant to Peru free port privileges at Arica and free transit in bond to Peruvian goods shipped into Bolivia by the Arica–La Paz railway.
7.
Fortifications will be removed from the Morro promontory and a monument will be erected there in commemoration of the permanent peace established between the two countries, and the promontory will be converted into a park to which everyone will have free access.
8.
Chile and Peru will agree to reciprocal guarantees of personal and commercial rights in the Provinces of Tacna and Arica.
9.
Chile and Peru will embody in the final treaty of settlement specific and detailed provisions for compulsory arbitration of all disputes over the interpretation of treaty provisions.

As an alternative reading to point number 3, I suggest the following as possibly more acceptable to Peru:

3. Chile and Peru agree to appoint engineers to deal concerning the location of a suitable port for Peru at or north of Escritos and concerning the establishment of railroad connections between such port and Tacna. If and when the location of such a port is agreed upon, Chile will pay Peru the cost of construction of such port and of the establishment of railroad connections between it and Tacna but not to exceed 3,500,000 United States currency. Chile and Peru agree however that if investigation fails to convince Peru that a suitable port can be erected at or north of Escritos, the present settlement will nevertheless stand and Peru will accept in lieu of said port the sum of $3,500,000.

The Chilean Government has been [sic] considered and will accept all of the points suggested above. It will accept either number 3 or the proposed alternative as altered.

Culbertson