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desirous the present Government may be to settle this matter it can not indicate the amount to be paid, nor can it, I believe, consent to any liberal compensation except as the result of arbitration. I again referred to the general list of claims, as set forth in my note of 30th September, 1890, and said that having read the report of the fiscal of the supreme court, Señor Don Ambrosio Montt, upon the claims of citizens of Spain and Ecuador, and the manner in which that gentleman had referred, not only to the claims, but to the governments that had supported them, I had considerable hesitation in submitting these claims to him. Señor Errázuriz said that, of course, the opinion of the fiscal would not bind the Government, whereupon I asked if some arrangement could not be come to for submitting them directly to arbitration, and thus avoid a delay apparently unnecessary and the danger of some expression of opinion on the part of the fiscal that might not be consid ered friendly by my Government. Señor Errázuriz at once expressed his approval of the idea provided that such arbitration should embrace the Baltimore claims as well as the others; in fact all claims up to date, and added that he would be in favor of adopting the simplest possible form of arbitration. He requested me to suggest a plan for the forma tion of a tribunal of arbitration, to which I replied that I would telegraph my Government for instructions on the whole question, and meantime he stated he would consult with the President and his colleagues of the cabinet on the matter.

I send you to-day telegram summarizing the foregoing, and recommending that under the circumstances stated everything should be left to arbitration.

I have, etc.,

PATRICK EGAN.

No. 29.1

Mr. Egan to Mr. Foster.

[Extract.]

LEGATION OF THE UNITED STATES,

Santiago, July 2, 1892. (Received August 11.) SIR: In consequence of the translation into a section of the Chilean press of the infamous letters addressed by the Señores Ricardo L. and Juan Trumbull to certain members of the United States Congress, in one of which Señor Juan Trumbull says: "The 1,400 men killed in the Placillas directly owe their death to the interference of the United States Navy," the attacks upon Admiral Brown and other naval officers of the United States have been again renewed, with even more than former

venom.

In a leading article, which appeared in yesterday's edition of El Heraldo, a leading radical-liberal organ of Valparaiso the false charges against Admiral Brown and the officers of the cruiser San Francisco are again emphasized. Referring to my note of 17th September last, addressed to the minister of foreign relations, conveying Admiraĺ Brown's denial of the charges, it says:

In the note directed to the minister of foreign relations, Mr. Egan speaks of the "scandalous charges" which have been made against Rear-Admiral Brown, and insists on maintaining that the disembarkation at Quinteros was already known to the agents of Balmaceda. This is, without doubt, the fact; the Dictatorial Government knew of the disembarkation of some troops at Quinteros, but they could not have known if that was a regular attack or a false disembarkation in order to cover a different plan of campaign, and this was what they learned through the American naval officers who communicated to Mr. Viel the number of ships and the approximate number of effective troops which they had brought.

In view of the effect upon the opinions of the unreasoning and uneducated masses in Valparaiso and other Chilean ports, of these repeated and scandalous attacks, and the danger should the opportunity offer of further attacks being made in consequence upon the uniform of the United States, similar to the murderous assault upon the men of the Baltimore, I deemed it my duty to address to-day to the minister of foreign relations a note upon the subject, copy of which I beg to hand herewith (inclosure No. 1).

I am glad also to be able to inclose translation (inclosure No. 2) of a letter published in La Republica of this city, of 29th June ultimo, two days prior to the appearance of the slanderous article in El Heraldo, signed by Señor Don A. Valdes Carrera, who at the time of the landing of the Congressional forces at Quinteros was governor of Quillota and who is a gentleman of entire reliability.

Señor Valdes Carrera says that at 5:30 o'clock in the morning of the 20th August he advised to President Balmaceda the arrival of the Congressional squadron in the Bay of Quinteros, and also to Admiral Viel, intendente of Valparaiso; that he had the landing watched by advanced pickets, who from moment to moment telegraphed all details of the landing up to 4:30 o'clock in the evening, when they announced the completion of the disembarkation nearly one hour before the San Francisco arrived back from her voyage to Quinteros Bay.

This agrees exactly with the statement of Admiral Brown, conveyed in his letter to me of 8th September, copy of which I inclosed in my dispatch No. 203 of 17th September last, and is a complete answer to the scandalous charges so constantly repeated here against him and against other officers of the U. S. Navy.

I have, etc.,

[Inclosure 1 in No. 319.]

PATRICK EGAN.

Mr. Egan to Señor Errazuriz.

LEGATION OF THE UNITED STATES,
Santiago, July 2, 1892.

SIR: On September 17 last, foreseeing and fearing the danger that might arise to the friendly relations of our respective countries from the reckless and utterly unfounded charges made against Admiral Brown, of the U. S. Navy, over the signature of Señor Don Ismael Valdez Vergara, and freely repeated by a section of the Chilean press, which fears were afterwards so fatally confirmed a month later by the attack upon and killing and wounding of a number of the crew of the United States cruiser Baltimore in Valparaiso, I considered it my duty to address to the ministry of your excellency a note conveying copies of a letter of Admiral Brown addressed to me, in which that officer gave a clear and positive denial to the odious charges made against him.

From time to time since, notwithstanding this denial of Admiral Brown, the same charge of having given important information to the Balmaceda Government has been made against both him and his officers until the statement has become almost an accepted part of the history of Chile.

Only yesterday, the 1st instant, El Heraldo, of Valparaiso, in one of its leading articles, repeated the charges and added: *

"En la nota dirijida al Ministerio de Relaciones Esteriores habla el Señor Egan de los cargos escandalosos' que se han hecho al contra-almirante Brown e insiste en sostener que el desembarco de Quinteros era ya conocido de los ajentes de Balmaceda. El hecho es sin duda exacto; el gobierno dictatorial conocía el desembarco de algunas tropas en Quinteros pero no podía saber si era aquello un ataque en regla 6 un falso desembarco para enbrir un plan diverso de campaña y eso fué lo que supo por los oficiales de marina Americanos que comunicaron al Señor Viel el número de buques y el efectivo aproximado de las tropas que aquellos traian.”

This additional calumny is completely answered in a letter of Señor Don A. Valdes Carrera, ex-governor of Quillota, which I find published in La Republica, of this city, of 29th ultimo, two days before the publication of the article in El Heraldo, copy of which I inclose for the information of your excellency. In this letter Señor Valdes Carrera says:*

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· El que suscribe, gobernador de Quillota, a las 5:30 a. m. del 20 de agosto, puso telegrama al Excelentísimo Señor Balmaceda, avisando la llegada de la Escuadra a Quinteros i comienzo del desembarco, e igual aviso dió al almirante Viel i al jeneral Aleerreca, i que momento a momento telegrafiaba a mis superiores dando las noticias del caso.

"Las revolucionarios eran inspeccionados por las avanzadas que tenia en ese lugar; una de ellas llevaba un telegrafista con máquina de mano, el que a cada instante comunicaba lo que ocurria.

"De este modo avisé el desembarco con todos sus detalles, hasta número exacto de fuerzas de cada arma, número de lanchas empleadas en desembarco i número de trasportes, i a las 4:30 p. m. anunciaba terminacion del desembarco, ántes que almirante Viel tuviese conocimiento de estos sucesos por el cablegrama que el oficial norte Americano le llevara para ser visado i remitido a su gobierno."

I shall not enter further into the question of these offenses against the honor of trusted officers of the United States naval service except to repeat to your excellency what I stated in my note of September 17 last, already referred to. It is to be regretted that charges of this nature, calculated to weaken the cordial feelings of friendship which ought to unite our people, should be so recklessly made.

I have not brought to the notice of your excellency's ministry, nor do I intend to do so, the vile and utterly untruthful statements leveled against me as minister of the United States by this same section of the press, being content to leave entirely to my own Government the appreciation of such attacks.

Renewing, etc.,

PATRICK EGAN.

[Inclosure 2 in No. 319-From La Republica, Santiago, June 29-Translation.]

The EDITORS OF LA REPUBLICA: I have read in El Ferrocarril of the 22d instant, No. 11425, an article calumniating the worthy representatives of the United States of America in this country with the heading "More Light," translation from the New York World for El Mercurio.

In this publication there is an attempt to prove that Admiral Brown and Lieut. Dyer, of the American Navy, were occupied in informing President Balmaceda of the advance of the revolutionists and of the disembarkation at Quinteros on 20th of last August.

As a proof that is unimpeachable he publishes a cablegram that said Admiral Brown sent to his Government after he had been at Quinteros on the afternoon of that day and had assured himself of the actual disembarkation of the troops-which cablegram was viséed by our Admiral Viel.

Lieut. Dyer went on shore in Valparaiso at 5:10 p. m. to have his cablegram viséed and send it to his Government, at which hour, says the World, Admiral Viel learned of the disembarkation by means of the advice which he received from the officers of the American Navy. This is the proof the New York World adduces, according to the assertions of Dr. Trumbull, agent of the revolutionists at Valparaiso.

From the above statements the management of the affairs of the country appear in a very brilliant light since it was necessary that a foreign admiral should inform our Government of the landing of the enemy on the coast twelve hours after it had occurred.

Let the New York World and the traitor Trumbull both know that the undersigned governor of Quillota, at 5:30 a. m. on the 20th of August, telegraphed to President Balmaceda, informing him that the fleet had arrived at Quinteros and had begun the disembarkation, and that I at the same time advised Admiral Viel and Gen. Alcerreca, and each moment thereafter I telegraphed my superior officers, giving them news of what occurred.

The revolutionists were watched by the pickets which I had stationed at Quinteros. One of these parties had with them a telegraph operator with a portable instrument, and he informed me cach moment of what occurred.

By these means I advised the landing of the troops with all details, even the exact number of forces in infantry, artillery, and cavalry, the number of launches employed in the disembarkation, and the number of vessels, and at 4:30 p. m. I announced that the disembarkation of the troops was concluded, before Admiral Viel learned of *The translation of what follows will be found in Mr. Egan's covering dispatch.

these occurrences through the cablegram which the American naval officer took him to be viséed and remitted to his Government.

This is the truth of what occurred, and proves the calumny the most powerful weapon of the revolutionists.

I remain, etc.,

A. VALDES CARRERA.

Mr. Foster to Mr. Egan.

[Telegram.]

DEPARTMENT OF STATE,
Washington, July 5, 1892.

Mr. Foster calls Mr. Egan's attention to the fact that he has overlooked, in his suggestion to include the Baltimore incident among older claims, that it was undesirable on account of its important features to join this question with ordinary claims; he states that the Government of the United States has not changed its belief that the question was deemed to be capable of honorable adjustment by the usual diplomatic methods, as expressed to the Government of Chile when arbitration was proposed; he remarks that Chile made, in international conferences on the subject of arbitration of questions in which national honor is involved, declarations which are now particularly applicable; that the United States under analogous circumstances has several times offered a voluntary compensation, and that a frank and friendly offer of the same nature would be signal proof of good will; that close amity would thereby be much more effectively promoted than by a protracted litigation of a point of honor, and that after a satisfactory adjustment of the Baltimore case there could certainly be no difficulty in arranging the details concerning the arbitration of other claims.

No. 320.]

Mr. Egan to Mr. Foster.

[Extract.]

LEGATION OF THE UNITED STATES, Santiago, July 7, 1892. (Received August 11.) SIR: I beg to refer to my No. 319 of 2d instant, inclosing copy of my note addressed to the minister of foreign relations on the subject of the repeated attacks made by a section of the Chilean press upon the honor of Admiral Brown and other officers of the U. S. Navy, and now inclose translation of the reply of the minister thereto.

I have, etc.,

PATRICK EGAN.

[Inclosure in No. 320.-Translation.]
Señor Errazuriz to Mr. Egan.

DEPARTMENT OF FOREIGN RELATIONS,
Santiago, July 6, 1892.

SIR: I have had the honor to receive the communication of your excellency dated 2d instant, in which, after repeating that stated by your excellency to this department on a former occasion with reference to certain comments made by the press on

the conduct observed by Admiral Brown during the disembarkation of the constitutional forces at Quinteros, your excellency incloses a printed cutting in which the ex-governor of Quillota under the Balmaceda administration explains the manner in which the knowledge of the disembarkation of the said forces reached the authorities.

I liave taken careful note of the dispatch of your excellency, which I have read with marked interest, and in acknowledging the receipt of it to your excellency I am glad to avail, etc., ISIDORO ERRAZURIZ.

Mr. Egan to Mr. Foster.

[Telegram.]

LEGATION OF THE UNITED STATES,

Santiago, July 11, 1892.

Mr. Egan reports that an indemnity for the seamen of the Baltimore has been agreed to by the minister for foreign affairs, who this day offers $75,000 in gold, and that the Congress will be asked, without delay, for the approval to which the offer is subject. Mr. Egan recommends that it be accepted and confirmed at once.

Mr.Foster to Mr. Egan.

[Telegram.]

DEPARTMENT OF STATE,
Washington, July 12, 1892.

Mr. Egan is informed that Chile's offer of $75,000 indemnity in the Baltimore case will be cordially accepted, subject to the condition named; and is directed to receive and accept payment by exchange of notes as promptly as possible.

No. 326.]

Mr. Egan to Mr. Foster.

LEGATION OF THE UNITED STATES, Santiago, July 12, 1892. (Received August 11.) SIR: I beg to refer to my No. 318 of 2d instant in relation to the question of compensation in the Baltimore case, and to say that on receipt of your telegram of 5th, I had an interview with the minister of foreign relations on the matter, and brought to his attention the importance of making a frank and friendly offer, which would be so much more conducive to friendly relations between the two countries than a protracted litigation. He on the other hand contended for the convenience of arbitration, especially because such a mode of arrangement would not call up any discussion in Congress; however, he finally said that if the United States would not willingly accept this mode of settlement Chile should adopt the other. On the 8th instant we had another interview, when the minister asked me if a sum of $50,000 would be

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