PERU & CHILI.

Taranaki Daily News, 9 December 1918, Page 6

PERU & CHILI.

SIGNIFICANT EVEOT& (Kec. December 7, 2.10 p.m.)' Santiago, Dee. 0. It is reported liere that tie Peruvian Cabinet lias resigned. New York, Dec. <j. Dispatches from Lima say tho Chilian Consul-general left for Santiago ijJijf took the Chilian archives. The Peruvian Government is repo/t----ed to have asked American bankers for thirty-three million dollars loan. LEGACY FROM PREVIOUS WAR. CHILE COVETOUS. The trouble between Chile and 'Peru is a legacy from the war of 1879-80, which arose over Chile's dispute with Bolivia regarding the desert of Atacama, an. arid waste along the Pacific Coast separating the southern boundary of Peru from Chile's northern line. This desert had remained for many years without an acknowledged owner, though both Bolivia and Chile claimed it. In 1866 the two republics, being allied against Spain, fixed the twentyfourth degree of south latitude as the boundary between them. This gave Bolivia the northern portion of the desert, which subsequently was discovered to bfl rich in minerals. The Chilean landowners in this area were permitted by treaty to mine and to export minerals without tax or hindrance, the Chilean Government being allowed to maintain a representative in the Cus-toms-house at Autofogasta to facilitate this arrangement. In 1878 Bolivia imposed a ta\> on all nitrates, and insisted, despite Chile's protests, that it should apply to the Atacama province, and announced that unless the dues were paid, all nitrates in the hands of the exporters would be seized. When the day for the seizure arrived, the Chileans occupied Autofogasta, and subsequently defeated > the Bolivians in some minor fighting. Peru thereupon sent envoys to the belligerents, and being suspicious of the ' southern republic's intentions, took other precautionary measures'. Chile replied by announcing that she knew that Peru and Bolivia had signed an offensive treaty agalast her in 1873, and she threatened war. The text of this treaty was published, and it was shown to be purely defensive.

Chile, however, had set her eyes on the rich 'Peruvian province of Tarapaco, north of Atacama, and in spite of the denial of her allegations regarding the treaty, declared war on both Peru and Bolivia. The Chileans were victorious, putting the military issue beyond doubt in a crushing defeat Of tho Allies at Arica on June 7, 1880. Lima was occupied, and peace was finally signed at Ancoii m ISBS. This treaty gave Chile the 4tacama desert and the Tarapaca province, together with the right to oi«upy for ten years the provinces of Tncna and Arica, after which the inhabitants of the districts were to decide 't>y> popular rote whether or not tlioy would revert to !P«ro. the republic finally remaining in to pay tho other a. sum equal to about £1,000,000. It is the question of the, 'plebiscite in Arica and Tacua that is the iubject of the present breach between the republics. Tho vote should have been taken in 1894, but Peru was then in the throes of irovototionjiry upheavals, and later the two ".ouwT.ries we.rc unable to agree on the qualilicaMok necessary for the 'Jihabitauts to (to to. Vcru insisted that only Pei-u----vians % tie two districts should vote, but Oliile injected this ou the ground thai all the inhabitants were raiitled to a voice in the Anal dccisiou. The position was further complicated by the discovery in the early atages of. an agreement between Chile and Bolivia, whereby the latter should receivo the disputed provinces if the rote went against Peru. It is interesting to notice, too, that the treaty of kneon was ratified, by a Peruvian Government, headed by General Iglesiaa, which had been organised by the Chilean army of occupation in Lima. General Iglcsias*. was driven from office by the Peruvians immediately the Chilean troops had departed.