SIR: I have the honor of informing you that the Peruvian minister at La Paz, Bolivia, Dr. Felipe de Osma, has signed a protocol for the purpose of submitting to arbitration the pending questions between Peru and Bolivia. I have, etc., RICHARD R. NEILL. Mr. Hay to Mr. Neill. No. 278.] DEPARTMENT OF STATE, Washington, January 27, 1902. SIR: I have been gratified to receive your No. 547, of November 27 last, reporting the signing of a protocol between Peru and Bolivia submitting to arbitration the pending questions between the two countries. You will send to the Department a copy of the protocol when published. I am, etc., JOHN HAY. Mr. Neill to Mr. Hay. No. 572.] LEGATION OF THE UNITED STATES, SIR: Referring to my No. 547 of November 27 last, and also to the Department's instruction No. 278 of January 27 last, I am pleased to transmit herewith, as instructed, a copy of the protocol between Peru and Bolivia submitting to arbitration the pending questions between the two countries. I have, etc., [Inclosure.] RICHARD R. NEILL Treaty of arbitration between Bolivia and Peru-Official text. [From El Tiempo, Lima, December 12, 1901.] The President of the Republic of Bolivia and the President of the Republic of Peru, being desirous to draw closer the bonds which exist between the two States, by estab lishing arbitration in the relations of the two Republics, have for that purpose named as their plenipotentiaries: His Excellency the President of the Republic of Bolivia, Dr. Federico Diez de Medina, his minister of foreign relations, and His Excellency the President of the Republic of Peru, Dr. Felipe de Osma, his envoy extraordinary and minister plenipotentiary, who have concluded the following treaty of arbitration ARTICLE 1. The high contracting parties pledge themselves to submit to arbitration all the controversies which have thus far been pending, and those which, while the present treaty is in force, may arise between them, whatever may be their nature and causes, provided that it has been found impossible to settle them by direct negotiation. ART. 2. In each case that may arise the contracting parties shall conclude a special agreement with a view to determining the subject-matter of the controversy, to fixing the points that are to be settled, the extent of the powers of the arbitrators, and the procedure to be observed. ART. 3. In case the high contracting parties do not succeed in agreeing on the points referred to in the foregoing article, the arbitrator shall be authorized to determine, in view of the claims of both parties, the points of fact and of law that are to be decided for the settlement of the controversy, and to establish the mode of procedure to be followed. ART. 4. The high contracting parties agree that the arbitrator shall be the permanent court of arbitration that may be established in virtue of the decisions adopted by the Pan-American Conference now sitting in the City of Mexico. ART. 5. For these two cases: (a) If the court referred to in the foregoing article shall not be created, and (b) if there is need of having recourse to arbitration before that court shall be created, the high contracting parties agree to designate as arbitrator the Government of the Argentine Republic, that of Spain, and that of the United Mexican States for the performance of this duty, one to act in case of the disability of the other, and in the order in which they are named. ART. 6. If, while the present treaty is in force, and in the two contingencies referred to in the foregoing article, different cases of arbitration shall arise, they shall be successively submitted for decision to the aforesaid governments in the order above established. ART. 7. The arbitrator shall further be competent: 1. To pass upon the regularity of his appointment, the validity of the agreement, and the interpretation thereof. 2. To adopt such measures as may be necessary, and to settle all difficulties that may arise in the course of the debate. Concerning questions of a technical or scientific character that may arise during the debate, the opinion of the Royal Geographical Society of London or that of the International Geodetic Institute of Berlin shall be asked. 3. To designate the time in which he shall perform his arbitral functions. ART. 8. The arbitrator shall decide in strict obedience to the provisions of international law, and, on questions relating to boundary, in strict obedience to the American principle of "uti possedetis" of 1810, whenever, in the agreement mentioned in article 2, the application of the special rules shall not be established, or in case the arbitrator shall (not ?) be authorized to decide as an amicable referee. ART. 9. The decision shall decide, definitely, every point in dispute, stating the reasons therefor. It shall be prepared in duplicate, and notice thereof shall be given to each of the parties through its representative before the arbitrator. ART. 10. The decision, legally pronounced, shall decide, within the limits of its scope, the contest between the parties. ART. 11. The arbitrator shall fix, in his decision, the time within which said decision is to be executed. ART. 12. No appeal from the decision shall be allowed, and its execution is intrusted to the honor of the nations that sign this treaty. Nevertheless, an appeal for revision to the arbitrator who pronounced it shall be admissible, provided that such appeal be taken before the expiration of the time fixed for its execution, in the following cases: 1. If the decision has been pronounced on the basis of a counterfeit document, or of one that has been tampered with. 2. If the decision has been, either in whole or in part, the consequence of a fact resulting from the proceedings or documents of the case. ART. 13. An appeal for revision shall in no case be required after six months from the time when notice of the decision shall have been given. ART. 14. The high contracting parties shall appoint their representatives for the proceedings, shall place at the disposal of the arbitrator all the information in their power, and shall pay their own expenses an done-half of the general expenses of the arbitration. ART. 15. The same arbitrator who pronounced the decision shall decide concerning such questions as may arise in the execution thereof. ART. 16. This treaty shall remain in force for ten years, reckoned from the date of the exchange of its ratifications. If no notice shall be given six months before its expiration of a desire for the cessation of its effects, it shall continue in force ten years longer, and so successively. ART. 17. The ratifications of this treaty shall be exchanged at La Paz or at Lima within one year from the day of its date. In testimony whereof, the undersigned have signed and sealed this treaty, prepared in duplicate, in the city of La Paz, on the 21st day of the month of November, 1901. FEDERICO DIEZ DE MEDINA. ADOPTION OF GOLD STANDARD IN PERU. Mr. Neill to Mr. Hay. No. 550.] * * * LEGATION OF THE UNITED STATES, SIR: The law creating the gold standard in Peru was passed by Congress, and of which I herewith transmit copies and a translation. This decree also provides that the Government, as it thinks best, shall demonetize up to a million of silver soles and convert their value into Peruvian gold coins. Although this law was promulgated on the 14th instant, to-day, the 16th instant, the banks have not recommenced to pay out gold; perhaps they may do so in a few days. * * I have, etc., * * * * * RICHARD R. NEILL. [Inclosure.-Translation.] The President of the Republic: The gold standard. Whereas Congress has passed the following law: The Congress of the Peruvian Republic, exercising the attribute conferred by the ninth paragraph of article 59 of the constitution, has passed the following law: ARTICLE 1. The monetary unit in the Republic is the Peruvian gold pound. ART. 2. The Peruvian gold pound is a coined disk of twenty-two millimeters in diameter (0.022), composed of eleven parts gold and one of copper, the total weight of which is seven grams nine hundred and eighty-eight milligrams (7.988). Half-pound pieces shall be coined, which shall be made of the same alloy in disks of nineteen millimeters and three-tenths (0.0193 m.) and of the corresponding weight of three grams nine hundred and ninety-four milligrams (3.994 grs.). ART. 3. The silver and copper pieces coined according to the law of February 14, 1863, and article 7 of the law of December 30, 1872, existing in the Republic, shall be simply fractional parts of the pound, ten soles to each pound. ART. 4. The gold coin is the only legal tender for the payment of debts, and no one is obliged to receive more than one hundred soles in silver or more than ten cents in copper coins. ART. 5. Only the state has the right to coin money. Silver and copper money can only be coined by virtue of a special law which shall determine the amount. ART. 6. The coinage of gold is unlimited. The national mint shall receive all the gold offered for the purpose of being converted into national money. ART. 7. The introduction into the territory of the Republic of silver and copper coin whatsoever is prohibited, and persons wishing to import the same can do so by way of the port of Callao only, the respective manifests to be entered at the customhouse there, in order that the administrator of the said customs may forward the money to the national mint to be smelted into ingots, at the importer's expense, to whom the same shall be returned in the said form. Passengers are not allowed to bring more than ten soles silver for their personal expenses. ART. 8. The grade margin permitted is two per one thousand, for the pound and half pound. The weight margin permitted will be twelve milligrams and ninety-six hundredths of milligrams (0.01296 g.) for the pound, and only nine milligrams and sixty-two hundredths of milligrams (0.00962 g.) for the half pounds. ART. 9. The loss in weight resulting from the use of gold coin shall unfit its legal circulation whenever it exceeds fifty milligrams (0.050 g.) for coins of one pound, and thirty-three milligrams (0.033.g.) for those of half pounds. The loss in weight allowable for silver coin can not exceed 5 per cent and that for copper can not exceed 10 per cent of their respective weights. The mint shall receive Peruvian silver and copper coins light in weight after being in circulation at their normal value and shall exchange them at par for new coins. ART. 10. Coins with completely obliterated stamps, and such as have been chipped, filed, or pierced shall not come under this head. The said coins shall lose their monetary character, and shall be considered as merchandise only. ART. 11. All previous monetary laws are hereby repealed in all such respects as are in opposition to the present law. TRANSITORY ARTICLES. First. The Executive shall adopt measures calculated to foment the coining of the greatest possible amount of gold coin. Second. English pounds and half pounds sterling shall be a legal tender in the Republic, the same as if they were Peruvian pounds and half pounds, respectively. Third. Obligations contracted previous to the promulgation of the present law, in silver soles, may be canceled with the said coin up to two years from the present date. After that term all obligations contracted in silver soles shall be canceled with gold coin at the rate of one pound for every ten soles silver. Fourth. The Executive shall exercise its judgment in the smelting down to one million of silver soles, the value of which shall be replaced by Peruvian gold pounds. The expense of this operation shall be placed to the demonetization account and chargeable to the extraordinary expenses of the treasury department. Let this be communicated to the Executive in order that he may take the neces sary steps for its promulgation. Given at the House of Congress, in session at Lima, the 13th day of the month of December, 1901. M. CANDAMO, President of the Senate. MARIANO H. CORNÉGO, President of the House of Deputies. I. CAPELO, Secretary of the Senate. José OLIVA, Secretary of the House of Deputies. To His Excellency the CONSTITUTIONAL PRESIDENT OF THE REPUBLIC. Therefore I order the printing, publishing, circulating, and due carrying out of Given at the Government house, Lima, on the 14th day of the month of December, 1901. this law. EDUARDO L. DE RAMAÑA. Mr. Neill to Mr. Hay. No. 564.] LEGATION OF THE UNITED STATES, SIR: In connection with my No. 550, of December 16 last, regarding the passage of the gold-standard law in Peru, I have the honor to announce that on the 17th instant the minister of finance, Señor Adrian Ward, issued a decree bearing the sanction of the President of the Republic, causing 500,000 soles to be smelted into silver bars at the Lima mint and directing the said bars to be exported to Europe and sold for the purpose of buying gold. Vide fourth article of the transitory measure in decree of December 14, 1901, which says: The President shall exercise his judgment in the smelting to the amount of 1,000,000 of silver soles, the value of which shall be replaced by Peruvian gold pounds. For the due carrying into effect of article 4 of the transitory law of December 14, 1901, it is resolved: First. The treasury department shall order the smelting into silver bars at the national mint of 500,000 entire soles-silver-coined money. Second. The said department shall take measures to have these bars exported to Europe and sold there, and shall employ the product of the same in the importation of gold. Third. The expenses attached to these operations shall be chargeable to item 5495 of the present budget on account of "demonetization." [The rubric of His Excellency.] Mr. Neill to Mr. Hay. WARD. No. 580.] LEGATION OF THE UNITED STATES, SIR: Referring to my No. 564, of January 18 last, regarding the demonetization of 500,000 Peruvian silver soles, I have the honor to transmit herewith copies and translation of an arrangement entered into by the Peruvian minister of finance and the banks of Lima for the carrying out of the resolution of January 17 last and as authorized by a supreme decree of March 6, 1902. I have, etc., RICHARD R. NEILL. [Inclosure.-Translation.] The silver soles which by virtue of the following act and decree the Banco del Peru y Londres engaged to deliver for the purpose of converting into bars, which operation is to commence at the mint to-morrow, are already deposited in the vaults of the said institution. The minister of finance, acting as chairman, the manager of the finance department, the president of the Lima Chamber of Commerce, and the managers of the Peru and London, the Italian, the International, and the Popular banks, respectively, met on the 1st of March, 1902, in Lima, when the minister stated that the Government wished to know if the banks maintained their offer to carry out the demonetization of 500,000 silver soles, in fulfillment of the gold-standard law. After a lengthy discussion, in which the bank managers were disposed to cooperate with the Government in the carrying out of the desired object, the following resolutions were passed: 1. The Italian, the International, and the Popular banks, respectively, will deposit in the Peru and London Bank the number of silver soles that each one may find |