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time of occupation shall be collected in the form which the chief collector of customs shall determine.

ART. VIII. All merchandise disembarked should be immediately dispatched for consumption. If from exceptional circumstances, duly certified to by the chief collector of customs, it shall not be possible to dispatch from the port the merchandise disembarked, these may be deposited in the stores of the customhouse for fifteen days. The compensation for storage shall be equivalent to 2 per cent of the value of the merchandise. If, at the expiration of fifteen days, the merchandise shall not have been dispatched, the collector of customs shall proceed to sell them at auction to the highest bidder, and, after deduction of costs and duties, the remainder shall be held in deposit to the credit of whom it may concern.

PAYMENT OF DUTIES.

ART. XI. The duties may be paid, at the option of the payer, (1) in the silver peso (dollar) of any nationality, provided always that, by weight and standard, shall not be worth less than that of Chili; (2) in gold coin, computing the peso at 38 pence each; (3) in treasury bills of Chili at such rates of discount as shall be fixed at these headquarters within the first two weeks of each month.

ART. XII. This decree shall take effect from and after the 8th of June, proximo.

The decrees of the 22d January and the 15th February last are repealed.

Given in the Government House, in Lima, this 24th of May, 1881. PATRICK LYNCH,

MANUEL DIAZ B., Secretary-General.

to the collector of customs at Callao, after having certified to the quantity of merchandise shipped. The other copy shall be returned to the party interested after the remarks written upon the one reserved have been copied thereon.

ART. VIII. The collector of customs at Callao, as soon as he shall receive the copy sent him by the military commander, or the commander of the blockading squadron, shall proceed to collect the duties on the goods, in case they have not yet been paid.

ART. IX. Any exports made in violation of the foregoing articles will subject the party making them to the penalties prescribed for the prevention and repression of smuggling.

Done at Lima, in the Government Hall, May 25, 1881. P. LYNCH. MANUEL DIAZ B., Secretary-General.

Of the condition of Peruvian commerce at the present time nothing more can be said than that it has reached the lowest ebb. Even the trade with Great Britain has been sensibly decreasing since 1878. The subjoined tabular statement will serve to show the value of the Peruvian exports to and imports from Great Britain during the decennial period embraced between 1871 and 1880:

1871

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1879

FOR EXPORTATION.

ART. V. Merchants wishing to export sugar, or any article subject to export duties, from any port lying north or south of Callao, may do so by complying with the following provisions:

1. They shall present an application to the collector of customs at Callao, mentioning the name of the port (or ports) in which the goods are to be discharged, together with the quantity to be exported. On arranging for the payment of duties on the merchandise to be exported, the parties interested shall furnish a certificate of deposit, or a promissory note, indorsed to the satisfaction of the collector, as security for the

amount of such duties.

2. The payment of said amount shall be required, if, during the period which shall be fixed by the collector, and which shall not exceed one month, it shall not be satisfactorily shown that the exportation has been impossible, owing to some unforeseen occurrence, or to vis major.

3. Notwithstanding the provisions contained in the foregoing paragraph, the collector may require the payment of the export duties to be made in cash whenever he shall deem it proper so to do.

ART. VI. The duties having been paid, or a sufficient guarantee furnished for their payment, the collector shall issue an order in duplicate, in which shall be stated the name of the vessel which is to receive the goods, the exact quantity of the latter, the name of the port (or ports) in which they are to be discharged, and such other particulars as may tend to prevent abuses. Both copies shall bear the approval and seal of the military commander of Callao."

ART. VII. The order referred to in the foregoing article shall be delivered to the party interested, and shall be considered a sufficient permit by the commanding officer of the blockading force, or by the military officer in command of the port from which the exportation takes place. The military commander, or, in his absence, the commander of the blockading force, shall retain one of the copies of the order, for the purpose of transmission, as speedily as possible,

1850

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The exports of sugar in an unrefined state, small previous to 1869, have attained large proportions in recent years. From 2,560,560 soles in 1874, they rose in 1876 to the value of 4,963,995 soles, and in 1880 to 5,640,310 soles.

The following table shows the annual exports of nitrate of soda from Iquique (the principal port of the nitrate region), from 1830 to 1879, the value, per cwt., at Liverpool, in each year since 1847, inclusive, and the number of vessels annually engaged in the nitrate carrying trade:

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Thus the total quantity shipped in the thirtythree years from 1847 to 1879, inclusive, was 3,723,182 tons of 2,240 pounds each, at an average value of £14 68. 8d. per ton, and an aggregate value of $264,345,900 approximately. The rate of duty imposed on nitrate shipped from the port of Iquique from 1830 to 1873 was four cents per quintal; from the latter year to the end of 1880 it gradually rose to $1.50 per quintal; and at the end of 1881 it was $1.60 per metric quintal (of 100 kilogrammes). The total length of the twenty-two railway lines open to traffic at the end of 1877 was 2,030 miles. Eleven of these lines belonged to the Government, eight were the property of private companies or individuals, and the three remaining lines were in part owned by the Government, and in part private property. As recorded in the article PERU, in our volume for 1880, the Chilians, after their victory at Arica, set about preparing an expedition against Lima, for the avowed purpose of putting an end to the prolonged contest, "not by such

VOL. XXI.-47 A

expedients as the conferences of Arica, which could give no positive result, but by striking the final blow in the very capital of the enemy." As soon as the army was raised to a strength sufficient, 26,000 Chilians, commanded by General Baquedano, began a campaign which culminated in the complete overthrow of the Peruvian army, and the occupation of the Peruvian capital by the victorious Chilian troops. Landing at Curuyaco early in January, 1881, the expedition at once proceeded to camp in front of the Peruvian army, which occupied the heights extending from Bella Vista to Monterico, under cover of parapets and ditches. At five o'clock, on the morning of the 13th, the first division, under Colonel Lynch, opened fire, and, the second soon following, the attack became general. A fierce fight of four hours ended in a victory for the Chilians. Yet another battle had to be fought, for some 8,000 Peruvians had concentrated in Chorrillos, whence they were "dislodged street by street." The town was completely destroyed. An armistice was now granted, at the request of the foreign ministers resident at Lima, but the Peruvians, again in position under cover of the fortifications at Miraflores, provoked another attack, and were routed and pursued to the suburbs of the capital. According to the report of the Chilian commander-in-chief, 25,000 Peruvians were beaten by half that number of Chilians at Chorrillos, and the number of the former at the commencement of the fight at Miraflores was 15,000. The Peruvian losses in the first of these two engagements "exceeded 7,000, with 1,500 prisoners, over 60 cannon and mitrailleuses, and a quantity of arms"; while the Chilian losses in both battles were estimated at but 600 killed and 2,000 wounded. Lima surrendered unconditionally, and was occupied by 4,000 Chilians on the 17th. Callao surrendered on the same day, and here virtually comes to an end the record of the military operations of this protracted struggle. Meantime Piérola, the Peruvian Dictator, had fled to Chocos, from which place he issued a pompous proclamation.

Piérola was credited with the design to protract the struggle by carrying the scene of hostilities to the mountainous regions, distant from the coast, and of difficult access for the Chilians. But these had no desire for the indefinite prosecution of guerrilla warfare, unpromising of glory or benefit. The main professed object for which they had pursued the conflict was not the conquest of Peru, but her destruction as a naval power, and her incapacitation for future intervention in Chilian affairs. That object attained, their further desires were lim. ited to two requirements: the establishment of a permanent peace, and the payment to them of a war indemnity. The only present means of securing the latter being the occupation of the conquered territory, that it was resolved to continue indefinitely. With a view to obtain the first, a provisional government

was, as already recorded, organized, with Señor García Calderon at its head, and under the protection of the Chilian authorities, Calderon "pledging himself to conduct his government upon principles not opposed to the fundamental conditions demanded by Chili for the final arrangement of peace." The failure of this and other efforts to the same end is briefly stated in the following extract from a circular which the Minister of Foreign Affairs of Chili addressed to the diplomatic agents of the republic abroad, under date December 21, 1881. Thus it is that Chili could not conclude a peace with Piérola, who, after his defeat at Miraflores, proved his inability to form a serious government outside of Lima, and finally fell, overthrown by the intrigues of Calderon and the rebellion of his soldiers; nor with García Calderon, who, lacking authority in the first period, and who, when beginning to acquire it, perverted it in the name of an intervention irreconcilable with the honor and the sovereignty of nations such as Chili and the United States. The last acts of Calderon, his public declarations against the capital conditions of peace, and the abuse against Chili and Peru of which he was guilty in encouraging a supposed foreign intervention, obliged our military authorities to make an end of the attempt at government made by García Calderon in February last.

On learning that Montero had adhered to the Arequipa and Puno declaration in favor of Calderon, the Chilian Government ordered the arrest of Calderon and his minister, Galvez, who accordingly were taken to Valparaiso in November. Piérola, abandoned by Montero (then in Cajamarca in the north), and probably also by Cáceres, who had been appointed by the Arequipa Congress second Vice-President of the Republic, Montero being the first, returned to Lima, and publicly declared his intention to renounce all further pretensions to power (December). Señor Don Adolfo Guerrero, late secretary to General Lynch, had been appointed political chief of Lima. As announced in President Arthur's message to Congress in December, special envoys were sent to Peru and Chili "with instructions which it is hoped will bring these powers into friendly relations." These envoys, Messrs. Blaine and Trescott, arrived at Callao on December 22d. It was presumed that Mr. Blaine would, on reaching Santiago, take charge of the United States legation left vacant by the death of General Kilpatrick.

The part played by Bolivia in the long contest is little short of inexplicable. The declaration of war was the outgrowth of a quarrel between Chili and Bolivia, about the ownership of a strip of desert. Peru not only took sides with Bolivia, but actually threw out the challenge to Chili, and, with little effective aid from Bolivian contingents, has borne the brunt of the war, and expiated her folly with her ruin; while Bolivia, save the almost inevitable sacrifice of her sea-board, undoubtedly damaging to her commercial interests, will have sustained no serious losses, territorial or financial.

See the article PERU, Chill, and the UNITED STATES,

in this volume.

PERU, CHILI, AND THE UNITED STATES. After the failure of the peace conference held on board the United States steamship Lackawanna at Arica, on October 22, 25, and 27, 1880, in pursuance of the offer by this Government of its good offices as an arbitrator between the belligerents, there is nothing of note to record on diplomatic relations with the Republics of Peru and Chili, until June 26, 1881, when, in accordance with instructions from Secretary Blaine, Minister Christiancy formally recognized the government of the Provisional President, Señor García Calderon. In July Minister Christiancy presented his letters of recall, and on the same day the new Minister, General Stephen A. Hurlbut, presented his credentials to President Calderon at the little village of Magdalena, Lima being then in the hands of the Chilians. On the 23d of August, Aurelio García y García, Minister of Foreign Affairs under Piérola, addressed to Minister Hurlbut a letter dated "The Ministry, Ayacucho," a town in the interior, where Piérola had set up the semblance of a government after his flight from Lima. The purpose of this letter was to persuade General Hurlbut to recognize Piérola as "the constitutionally proclaimed President" and lawful head of the government in Peru. In reply our Minister assured Señor García y Garcia that it would scarcely become him to enter into a discussion upon the internal affairs of Peru, "but," continued he, "as in your letter to me you have opened the road to such discussion, I propose frankly to express my opinion, so wording it as to wound as lightly as possible." He then points out that in seizing the supreme power and assuming an authority unknown to the Constitution, Piérola committed revolutionary and lawless acts. The resolution he carried out was "a crime against liberty"; the dictatorship was "a tyranny which was autocratic and despotic in its construction, its title, and its acts." Minister Hurlbut's letter continued as follows:

Oppressed by an invader, the populace of Peru submitted to that autocracy in the belief that it would conduct to victory. Foreign nations recognized it as a de facto government, but they never recognized its origin or its system. Under the Constitution the Ayacucho National Assembly has no right to exist, and its resolutions possess no legal power beyond that of the opinions uttered by an equal number of private citizens. Consequently, its confirmation of the full and autocratic faculties of the ex-dictator, under his new title of President, gives no greater legal weight to his authority or pretensions.

For this reason, and much to my regret, I find myself compelled to inform you that the decrees are barbarous and inhuman which have been recently issued in Ayachuco with respect to the persons and properties of those who do not recognize Señor Pierola, and they place the government which adopts such measures beyond the pale of the law. These unnatural decrees, in my opinion, afford conclusive proof that the government with which you are connected owes its existence entirely to force and not to public opinion. The government presided over by Señor Garcia Calderon does not pretend to be regularly and perfectly established. It is provisional. It is sup

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