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I will further say that immediately after my last dispatch, No. 156, at a meeting of the ministers of England, France, and Germany, and the chargé d'affaires of Italy, it was unanimously resolved that the notice of the blockade given by the Chilian admiral applied only to Callao.

Knowledge of this resolution was, I suppose, conveyed to the Chilian admiral, when he declared that the notice was intended to apply also to the towns of Chorillos, Miraflores, and Magdelena; but I am satisfied from information received through the British minister, who, as well as the commander of the English naval vessels here, seems to be on very friendly terms with the Chilian admiral, that the Chilian fleet do not intend to fire upon the three latter towns unless provoked by hostile demonstrations therefrom, though the blockade will apply to them.

The regular line of English mail steamers (upon which we all have to rely for our mails north and south) is no longer permitted to enter Callao. But the port of Ancon (20 miles north) is as yet open, and a steamer from there to Panama is expected to leave on the 22d, by which I expect this to go.

On the 20th, at 12 m., we expect the bombardment upon Callao to commence. The Chilians have eight vessels here, among which are the Blanco Encalada, the Huascar, and the Angamos, and it is believed they will have more before the attack is commenced. Our consul, Mr. Clayton, has, with my advice, removed the archives of the consulate ou board the Onward to await the result.

I have, &c.,

I. P. CHRISTIANCY.

[Inclosure 1 in No. 157.-Translation,]

LIMA, April 17, 18×0. The undersigned, after reading the note of Admiral Riveros to the consular corps of Callao, are convinced that, in conformity to his declarations, the chief of the blockading squadron, on making use of the rights of war, coinciding with his own interest, is aware of the rights due to neutral individuals and their properties. Nevertheless, the correspondence between Admiral Riveros and the consular corps leaving some points uncertain, they deem it their duty, in order to protect the interests of those under their charge, as well as to cover their responsibility towards their respective governments, to make the following declaration:

1st. That they reserve all questions in regard to the damages which may be caused, without military necessity, to the persons and property of neutrals.

2d. That they especially make these reservations in case of the bombardment of open and undefended localities.

3d. They do so likewise in the case of a bombardment of a town not expressly des ignated in a previous notification.

The undersigned hope that the Chilian admiral will be pleased to acknowledge the receipt of these reservations, and avail themselves of this occasion to offer him the assurance of their high consideration.

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[Inclosure 2 in No. 157.-Translation.]

Admiral Riveros to the diplomatic corps.

APRIL 18, 1880.

The undersigned has the honor to acknowledge the receipt of the esteemed collective note, dated yesterday, which the honorable diplomatic corps of Lima has been pleased to address to him.

That valuable communication has for object to establish declarations and reservations on the following points:

1st. In case that the persons and property of neutrals will be damaged without military necessity.

24. In case of the bombardment of open and undefended localities.

3d. In case of the bombardment of a town not expressly designated in a previous notification.

The undersigned, while sustaining the declarations and communications which, in the proper opportunity, addressed to the honorable consular corps of Callao, and to the commanders of the naval forces of neutrals in this harbor, has the honor to acknowledge the receipt of that respectful note, placing to the knowledge of the honorable gentlemen who signed it that, by the first opportunity, he will make it his duty to transmit the original to the Supreme Government of Chili.

The undersigned commander thinks proper to repeat here his declaration that, as far as the necessities of war and his instructions will permit, he will never forget the duties which the principles of humanity impose upon him, and the respect due to those who have not the character of belligerents.

The undersigned has the honor to offer, &c.,

No. 76.]

No. 535.

Mr. Evarts to Mr. Christiancy.

DEPARTMENT OF STATE,
Washington, April 19, 1880.

SIR: I have to acknowledge the receipt of your No. 140, in which you inclose a report of Consul Montjoy, relative to the destruction of neutral property at the Lobos Islands by Chilian vessels.

The Department had received information from our minister at Santiago of the issuance of the order, which appears to have been in part carried out at these islands, on the occasion referred to, and also of a representation made by the minister to the Chilian Government, to the end of procuring a modification of the order in the interest of neutral citizens of the United States. This government will not fail to protest to the minister of Chili in Washington against the conduct of the war, to the injury of citizens of the United States; and should Peru pursue a like course to that of Chili, it will be expected that you will make due representations to the minister of foreign affairs, to prevent damage to the citizens of this country and to restrict the collisions of a military character, the cruelties and devastations of the war.

I am, &c.,

No. 536.

WM. M. EVARTS.

No. 164.]

Mr. Christiancy to Mr. Evarts.

LEGATION OF THE UNITED STATES,

Lima, Peru, May 9, 1880. (Received June 5.)

SIR: Premising that on the 12th of April last, the Supreme Chief of this republic had issued a decree prohibiting the sale of articles of the first necessity at prices higher than those at which they were sold on the 8th April, when the blockade of Callao was notified, that this means that they should not be sold at higher prices in paper soles, the only currency

in circulation, that these soles were on the 8th April worth in exchange on London about 8 pence sterling, and that they are worth, to day, only about 5 pence, the following decree of the prefect of Lima of the 4th instant will be understood:

PRICES OF THE NECESSARIES OF LIFE.

His honor, the prefect of Lima, has issued a decree regulating the prices of daïly necessities, of which the following is a translation:

Considering,

1st. That by the supreme decree of the 12th ultimo it is prohibited to sell articles of first necessity at higher prices than those at which they were sold on the sth of same month;

2d. That such prices, in conformity with the said supreme decree, having been de termined on by the municipality of this capital:

I decree

ARTICLE 1. The articles of first necessity and the highest prices at which they sha!! be sold are to be as follows:

Rice, first class, of the country, sack of 190 pounds 34 soles, 1 pound 20 cents; East Indian, sack of 190 pounds 33 soles, 1 pound 19 cents.

White sugar, 100 pounds 25 soles, 1 pound 35 cents.
Brown sugar, 100 pounds 21 soles, 1 pound 24 cents.

Fresh beef, first class, 2 pounds 70 cents, 1 pound 50 cents; second class, 2 pounds 54 cents, 1 pound 40 cents; third class, 2 pounds 36 cents, 1 pound 30 cents. Pork, 60 cents per pound.

Mutton, first class, 2 pounds 78 cents, 1 pound 60 cents; second class, 2 pounds 54 cents, 1 pound 50 cents.

Sweet-potatoes (camotes), per sack 4 soles, per pound 5 cents.
Arrowroot, 100 pounds 17 soles, 1 pound 20 cents.

Beans, white and brown, 182 pounds 15 soles, 1 pound 13 cents.

Biscuit, ordinary, 100 pounds 36 soles, 1 pound 40 cents.

Pease, 182 pounds 18 soles, 1 pound 20 cents.

Flour, 100 pounds 21 soles 50 cents, 1 pound 25 cents.

Corn flour, 100 pounds 8 soles, 1 pound 15 cents.

Lentils (pease), 182 pounds 20 soles, 1 pound 18 cents.

Wood, for kindling fires, 100 pounds 2 soles.

Lard, foreign, 100 pounds 65 soles, 1 pound 70 cents; native, 100 pounds 55 soles, 1 pound 60 cents.

Corn, 156 pounds 9 soles, 1 pound 7 cents.

Potatoes, per load 25 soles, 1 pound 7 cents.

Beans, large, 156 pounds 15 soles, 1 pound 20 cents.

Bread, 140 to 180 grams, 10 cents each.

Soap, 300 in a box, 52 soles 20 cents; each piece 20 cents; native soap, large, 1 piece

10 cents.

Quinine, 24 soles per ounce.

Rum, per block 2 soles, 1 bottle 40 cents.

Salt, per block 3 soles, 1 pound 5 cents.

Candles, per box of 25 packets 23 soles, 1 packet 1 sole.

Yuca, per sack 21 soles, 1 pound 5 cents.

Kerosene, per box, containing 2 tins, 16 soles 75 cents; 1 gallon, 2 soles.

ART. 2. The sub-prefects, commissioners, and governors, in their respective jurisdictions, and the municipalities and the municipal agents in the groceries, markets, and slaughter-houses, exercising the most active vigilance so as to discover all infractions, are encharged with the punctual fulfillment of this decree, applying to all who contravene the same arbitrarily and immediately, the proportioned penalties to the gravity of the offense.

ART. 3. The authorities of the police will lend to the aforesaid municipalities the aid and assistance of the armed force, so that the above resolution be duly carried into effect.

Given at the prefecture in Lima the 4th day of May, 1830.

JUAN MARTIN ECHENIQUE.

The effect of this decree, as might have been anticipated, has been to drive many of the dealers in such articles to shut up their shops and refuse to sell the articles at all. Such has been the fact, especially among the shop-keepers of neutral nations doing business here, though the smaller native dealers profess to comply with the decree, and in many cases do, but many of them continue to supply inferior articles for the same price at which a superior article was sold before.

It must be acknowledged that this decree is an extreme measure. But it was expected to have a temporary effect in keeping up the value of the paper currency, and I think it has had and still has this effect to some extent.

There being no other currency to be had, the people must use this or nothing, and I fear the latter alternative will soon occur. What, then, is to happen I cannot foresee, as Peru does not appear to have any present available resources on which she can contract loans or obtain a coin currency.

I am, &c.,

No. 537.

I. P. CHRISTIANCY.

No. 179.]

Mr. Christiancy to Mr. Evarts.

LEGATION OF THE UNITED STATES,

Lima, Peru, June 20, 1880. (Received July 29.) SIR: Referring to my dispatch No. 177,* upon the progress of the war and the question of peace, I have now to inform you that on the 14th instant (the day after the dean of the diplomatic corps and the French minister had called upon the Supreme Chief in the name of the corps, as stated at the close of my dispatch No. 177), there appeared in the Patria and in El Peruano the address or proclamation of the Supreme Chief to the nation, a copy of which I here inclose, marked, with a translation from the South Pacific Times.

On the 16th instant appeared in the Patria (official paper) the "Protocol of the preliminary bases of the federal union of Peru and Bolivia,” a copy of which, with the translation, I here inclose. Also the "Supplementary protocol of the preliminary basis of the union of Peru and Bolivia," of which I inclose copy, with translation.

The proclamation is substantially in accord with the answer given by the Supreme Chief in person to the dean of the diplomatic corps and the French minister the day before.

It is the general opinion among the best informed Peruvians and foreigners here that such federal union, if carried into effect, will be highly and permanently beneficial to both Peru and Bolivia, though, in the meantime, revolutions may take place in Peru, and especially in Bolivia, which may prevent the union, but it is believed the general public opinion in Bolivia and Peru is and will remain in favor of the union, and such is my impression from the best information I can obtain.

The effect of the publication of these protocols has been to raise the market value of the paper currency here, which had fallen to 5 pence per sol, in exchange on London, and which is now freely granted by English houses here at the rate of 64 pence per sol.

I have, &c.,

I. P. CHRISTIANCY.

Published with the peace conference correspondence, Senate Ex. Doc., No. 26, Forty-sixth Congress, third session.

[Inclosure 1 in No. 179.1

[From The South Pacific Times, June 15, 1889.]

The Supreme Chief to the Nation :

FELLOW CITIZENS: Our patriotism has just received a rude shock. The unex pected check sustained by our first army of the south, brought about by a series of errors, and which can only be explained by the impatience of our army to meet the enemy, has given to the latter, at great cost, the useless occupation of Tacha and Arica, after a most heroic and memorable resistance.

A people bold and firm, who feel that they deserve to triumph, receive with pride. as does Peru, those checks, which only dishearten the weak.

It is well! By the pain with which we count our victims will be forged the sword of justice with which we shall repel our invaders. The blood shed claims vengeance: and shall have it, ample and complete. The example of our martyrs makes solders spring up by thousands, and there is not in Peru one who does not feel proud of them. Chili, conqueror, will find its conquests very dear. Peru to-day is to be feared a hundred times more by Chili than at the commencement of the campaign, and recovers in misfortune the strength forgotten in the days of confidence and tranquility.

Chili does not understand, cannot understand. what to a generous and high-spirited people means hearths trampled under foot, the blood of its sons shed, and the majesty of the nation outraged by those who should tremble at its anger; and judging us by themselves, they have dreamt that they could obtain the peace they covet, in order not to succumb to our inevitable and legitimate triumph.

Yesterday Chili dreamt also in our intestine struggles, but Peru and Bolivia have to-day only one voice, one thought. Chili sought to destroy the alliance, and all tha she has reaped is the making of two peoples one only. She attempts to hem us in by a blockade, but will only hasten the solution of our internal questions, and by s doing enable us to recover that strength which to-morrow she will look upon affrighted. Chili is building up day by day with her ephemeral successes her own ruin, and be each of her costly blows wastes the strength which might be able to resist us at a future time. Our resources are untouched, but theirs are coming to an end. They are living on what they borrow, to their own ruin and to the undeceiving of the deluded persons who discount their barren triumphs. They have played in Tacna a stroke of fortune which is utterly useless to them, which prostrates them and makes us, arise more vigorous and determined than before.

Let them burn, let them efface our undefended towns on the coast: let them lay waste our fields, if they can. We are determined to all, save the renouncing the vi dication of our right, the ceding one inch of our soil, the asking from us, to save thenselves, a peace which they will never be able to force upon us.

Fellow countrymen, you have contided to me the recovery of our national rights trampled under foot without even a pretext. My task, therefore, is to seek the recov ery of our rights without rest, and seek it at any cost, seek it until it be obtained. Behind me stand six million men. And when I fall, fortune, which may deny to me the being present at the triumph of my country, will not deny me, I trast, the right to die in its defense, secure of victory.

Justice is with us. Victory has never been denied to those who fighting for ther home and country become worthy of them by their determination and self-sacrifice. Lima, June 13, 18-0.

N. DE PIEROLA.

[Inclosure 2 in No. 179.-Translation.]

Protocol of the preliminary bases of the federal union of Peru and Bolivia,

In Lima, capital of the Republic of Peru, on the 11th day of June, in the year 180, the undersigned plenipotentiaries of Peru and Bolivia, having met in the hall of public audience of the secretary of foreign relations and worship, and after having exhib ited to one another their respective powers and found the same to be sufficient and in due form to proceed to stipulate and agree upon that which may the better tend toward the object of drawing closer the bonds of fraternity which nature and historical events have created between the two republics; of consolidating their domestic peace and providing for their security abroad; of assuring the general welfare of their inhabitants and extending the blessings of independence and liberty to the present and future generations; of promoting, likewise, that prosperity and greatness to which by a common destiny the rich and beautiful regions embraced in their vast territories are called, in conformity to the aspirations generally manifested by public opinion in the two countries, respecting the necessities of adopting a new political organization

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