PERU 1095 



In January 1910 a treaty was signed between Peru and Brazil settling the boundary 

 question so far as those two republics were concerned, but still leaving open that 

 portion of the frontier claimed by Ecuador. Several British officers took part in the 

 Peruvian Brazilian frontier delimitation namely Colonel Arthur J. Woodroffe, R.E., 

 who had had much experience in denning the boundaries of East Africa, Captain H. S. 

 Toppin, Lieutenant M. R. C. Nanson, and Lieutenant C. G. Moores. The Commission 

 sailed from Europe for the second time on October 20, 1912. 



The unfriendly relations which had so long existed between Peru and Chile regarding 

 the provinces of Tacna and Arica were accentuated when in February 1910 the Peruvian 

 minister in Chile, Senor Arturo Garcia, was withdrawn. At the end of 1912 however 

 a friendly settlement was reported to be in progress. 



A fresh outbreak of popular fury directed against the Peruvian legation at Bogota, 

 Colombia, occurred on April i, 1910, the outcome of an inflammatory proclamation 

 addressed by the president of Ecuador, Senor Eloy Alfaro. This was productive of 

 much angry correspondence and threatened reprisals between the two governments. 

 Peruvian troops were moved to the Ecuadorian frontier, and in the month of May it 

 seemed as if a border war was inevitable. The excitement gradually calmed down, 

 however, and normal conditions were restored. The Ecuadorian frontier question re- 

 maining unsettled, the United States, Brazil and Argentina in June offered their joint 

 services as mediators between Peru and Ecuador; the offer was accepted by Peru, but 

 was refused by Ecuador, as was also the suggestion that the whole question should be 

 referred either to King Alfonso XIII of Spain or to the Hague Tribunal. 



The boundary dispute between Peru and Ecuador differs materially from the usual 

 squabbles in which " the honour of the flag " and the " dignity of the nation " play prom- 

 inent parts. Here there is involved a serious question of territory, namely the entire 

 province of Loreto. This large tract of land covers an extensive region in the centre of 

 South America, and is divided into northern and southern sections. Peru claims the 

 northern section from Ecuador, and as this claim means the relinquishing of one-fifth 

 of the whole territory, the objection of Ecuador can be appreciated. 



During 1910 commerce and finance advanced encouragingly, and education also made 

 headway. The government carried on the policy of providing educational establish- 

 ments upon the principle initiated by President Manuel Pardo in 1872, whereby educa- 

 tion was made free throughout the republic. Wireless telegraphy, introduced into Peru 

 before it was adopted by any other South American republic, showed remarkable progress; 

 aviation also met with encouragement. In September 1910 the Peruvian aviator, Jorge 

 Chavez-Dartnell, the first man to fly across the Alps, was killed in Switzerland. 



On November 3, 1910, a new cabinet was formed under Dr. Jose Salvador Cavero, 

 but was compelled to resign (Dec. loth) on account of a vote of censure passed by the 

 Chamber of Deputies upon one of its members, Dr. Porras, minister for foreign relations. 

 The minister of finance, Dr. Carlos Forero, had previously resigned and had been replaced 

 by Senor Deyada. On Dec. 28th the Cabinet was reformed under Dr. Basadre, being 

 with two exceptions the same as that which held office under Dr. Cavero. 



On January 20, 1911 a law was passed providing for compensation for accidents to 

 workmen and employees in receipt of not more than 120 per annum. In May a law 

 governing the exportation tax upon crude rubber was promulgated, providing that all 

 rubber exported should pay an 8 per cent ad valorem duty based upon the quotation for 

 the commodity prevailing on the Liverpool market. 



On October 5, 191 1 a further attack upon the Peruvian legation at Bogota, Colombia, 

 took place, the mob stoning the residence and tearing down the escutcheon. The out- 

 rage was due to ill-feeling over an alleged encroachment of Peru upon territory claimed 

 by Colombia. 



The Ministry soon Underwent yet another change, Dr. Agustin Ganoza, former 

 Minister of Justice, becoming premier on October 20, 1911; the attempt to form a 

 Cabinet under Senor Ego-Aguirre on the i2th of that month had failed. A boycott 

 of Chilean steamers was instituted at the ports of Mollendo and Pisco in December, but 



