CHILL AND PERU.

Temuka Leader, Issue 37, 2 March 1880, Page 2

CHILL AND PERU.

Were it not that uo oauio ever and anon favours us with a more or less ambiguous announcement of the doings of the contending forces, we should amn-st forgei that war was raging :n South America, where Bolivia and Peru are allied in arms against Chili. Evm when an engagement takes place, it i.s not easy for these at a distance to decide on its pn bible bargr.i is upon the result of the contest, Beeing that each side invariably claims the victory. T.ie circumstances which led to the Avar are not g nerally known ; but it is now pretty certain that they originated in a dispute between Chili and Bolivia as to certain boundaries. When South'Ame- J rica was under the dominion of Spain, the limits of the various countries were not very e.l arely defined, and when these I became independent there was uo immediate rectification of boundaries. For several years this produced no evil consequences. As soon, however, as the value of the various natural products of th 1 Independent States became knownf a struggle commenced, each claiming as much adjoining territory as it believed would be profitable and possible to obtain. For example, Bolivia claimed from Peru a stretch of land about 40 miles long by 40 miles broad having a seaboard to' the Pacific, which Peru would not give up. Then again, Bolivia had a dispute with Chili as to territory lying between the 23rd 24th parallels, of South latitude. In 1842 Chili sent out an exploring commission, which discover 1 deposits of guano—then recently become valuable —in the district between the parallels above mentioned. Bolivia however, claimed the te ritory down to Salado, below the 26th parallel. After much wrangling, an arrangement was entered into in 1866, by which the disputed boundary was fixed at the 24th parallel, from the shoro to the eastern limit of Chili. There was, however, to be an equal division between the two States of all revenue derived from guano deposits and ores in the territory between the 23rl and 24th parallels. Various details for carrying out this arrangement were perfected, and Chili thereupon evacuated the territory. Later discoveries ot the richness in minerals of the formerly disputed ground led to the abrogation of this settlement. The land lying between the 23rd and 24th parallel to all appearance is barren and unproductive in the extreme, but in reality it is one great mine, containing gold, silver, saltpetre, iron, copper, and othe valuable products. There were no less than 4000 silver mines in the Caracoles district alone previous to the outbreak of the war. Near Antafagasta there are large deposits of nitrite of sod* and potash The discoveries referred to were made in 1870, and resulted in the rise of the towns of Antof.igasta and rinciila.

Chi! was not long in complaining that it did n>t receive its fair sliare of the increased revenue, and continued agitating until a second treaty was sigii'd in l#~l, by which Chili abandoned its inte>vst in the rev-uue ari ing from the disputed district, m considernti n of the cx> mpUon of Chilian suiij--cts from imposts igher than '-hos in force, on material extracted by them between the 23 rd and 25th parallels. The f-ilure of iiJivia to comply with this condition appears to havo been the immediate cause of the present war. It is not easy to predict with which side victory wil eventua'ly rest, but it is certain that the war can result in little beyo d the injury of the (States engaged in it.

Though attracting little attention here, the combatants are by no means insignificant. Chili has a population of over two millions, and before the outbreak of the war had a publis debt of nearly thirteen millions sterling. Even in times of peace, its expenditure had a tendency to exceed its income. The maintenance of an aimy and navy was a heavy burden—an expense that we in New Zealand are fortunately almost free from. Chili has soma 1200 miles of railway, most of which belongs to Government. Peru is still more popular having about three millions inhabitants. Its public debt in 1678 was over fifty millions sterling, besides a floating internal debt, the amount of which is not accurately known. It posseses ovet 220 miles of railway, nearly all Government prjperty, and of course lias a comparatively large army and navy. Bolivia has a population of two millions, exclusive of a large number of Indians. Its publio debt is three and a half millions. Half of this amount was raised in Kigland, for the construction of a railway to enable the National Bolivian Navigation Company to open up communication between the Republic and the Atlantic, which scheme was not earned out, and much of the loan was spent in England in law suits. It is to be regretted that the natural wealth, and not the poverty, of these States ti should have led them into a long and expensive war . —Mataura Ensign.