The Secretary of State to the Chilean Chargé.

My Dear Mr. Chargé d’Affaires: In answer to your inquiry of the 4th instant I beg to hand you herewith a memorandum embodying the views of the United States on the suggestion made by the Ecuadorian Government on May 26.

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In placing this memorandum in your hands permit me to express the appreciation of the Government of the United States for the influence exerted by Chile upon the Government of Ecuador in bringing about the withdrawal of her troops from the Peruvian frontier.

I am, my dear Mr. Yoachim, etc.,

P. C. Knox.

[Inclosure—Memorandum.1]

The Government of the United States regretted to be unable to receive with its usual sympathy the proposal of the Ecuadorian memorandum of May 26, for the reason that the proposal apparently sought to invoke Article VI of the arbitration convention of 23 years ago, and under it at this late date to insist, without the consent of Peru and as a right, upon fresh direct negotiations.

The situation is substantially this: Ecuador and Peru in 1887 concluded a treaty submitting their boundary dispute to the arbitration of the King of Spain. In this treaty the following article was incorporated:

Before rendering the arbitral award, and within the shortest period possible following the exchange both parties will use their best efforts to settle through direct negotiations all or some of the points comprised in the boundary questions, and in the event of such agreements being reached and perfected in accordance with the forms required for the validity of public treaties, they shall be made known to His Catholic Majesty, thus bringing the arbitration to an end or confining it to the unsettled points, as the case may be. Failing a direct agreement, the award shall be rendered to its full extent as provided by Article I.

Several unsuccessful efforts were made under the provisions of this article to directly adjust some or all of the differences between the two countries, but they failed, and the case proceeded before the arbitrator; evidence was produced by both parties in support of their respective contentions, the case closed, and for some time the decision of the arbitrator has been expected.

Rumors circulating as to the probable nature of the award produced an agitation in both countries which unfortunately soon manifested itself in preparations for war.

These preparations were of such a character and proceeded to such an extent as to cause belief throughout the world that war between the two countries was imminent, and the Republics of Argentina, Brazil, and the United States, mindful of their friendliness to both countries and anxious to preserve the peace in this hemisphere, proposed to both countries that if they would retire their troops from the frontier, cease warlike preparations and await eventualities, in case of no award or difficulties arising under the award, the three Republics would be glad to act as mediators to adjust the differences between Ecuador and Peru.

Both countries accepted this offer of mediation. Ecuador has concurrently with the acceptance of the offer of mediation, and subsequently, reverted to the desirability and her willingness to undertake direct negotiations for the settlement of the question under Article VI above quoted, but Peru has not indicated a willingness to do so.

Assuming the concurrence of the other two mediating powers, the Government of the United States would hold the view that direct negotiations could only occur at this juncture if happily either in pursuance of or irrespective of Article VI both parties desired them.

By their voluntary act both Ecuador and Peru have resumed a status of peace and have undertaken calmly to await the definite establishment of the fact that there shall be no award, or the making of an award followed by difficulties, in either of which eventualities the tripartite mediation will equally become operative.

Convinced that this view will bear the closest analysis and in the absence of evidence that both Governments desire to attempt a direct settlement, while on the other hand mediation has been accepted by both, the Government of the United States could not indeed avoid surprise at the proposal in question as based upon Article VI.

It should, however, by no means be inferred that if both parties choose to revert to Article VI or in any other manner to agree upon a direct settlement such result could be otherwise than agreeable to the mediating powers, because it would accomplish the very object of the mediation.

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That there should have at first existed any confusion or divergence of opinion as to any phase of the situation is only deprecated because of the unfortunate impression which it may produce and the Government of the United States is unwilling for a moment to believe that the Government and people of Ecuador could fail to share with the Government and people of Peru the fullest confidence that their rightful interests will be safeguarded by friendly mediating powers, whose sole desire is impartially to serve the two countries through mediation, which is known to diplomacy as the highest form of conciliatory good offices and which, according to The Hague convention, imposes upon them a duty which “consists in reconciling the opposing claims and appeasing the feelings of resentment which may have arisen between the States at variance.”

  1. Copies sent to Chargés of Brazil and Argentina, and to ministers of Peru and Ecuador, dated as above.