The Sun.
London, England, 1865-01-07 00:00:00

nistry for Foreign Affairs, to the representative of this Go-'
vernment abroad. That document merits especial mention,
since in it are expressed the views of the Spanish Govern-
ment upon the events in Peru, as well as the limit and
foundation of its moderate demands.

" These were stated with still greater precision in the
project of arrangement dated June 25, presented by Senor
Pacheco to the Peruvian Government through Senor
Moreira, its Consul in Spain, of which I have the honour
to append a copy.

"The equity of these proposals exactly corresponding to
the spirit of the above-mentioned Circular has been recog-
nised by all, both in Spain and abroad. In Spain, never-
theless, there have not been wanting some who consider
that her Majesty's Government has shown itself by no
means rigorous in expressing its injuries, and excessively
indulgent in fixing the nature and limits of the satisfaction
it demands. There are those also who, animated by ardent
zeal for the national honour, reason that moderation should
not alone be kept in view, and that on similar occasions
Governments should prove themselves right by confining
themselves within the limits of strict justice, at the same
time preparing, as circumstances may require, for equitable
arrangement or vigorous resolutions if they become indis-
pensable.
"But with much less reason the proposals of the 24th
and 25th June have been received in a contrary sense by
Peru as a fresh and great affront to the dignity of the Re-
public. In a document signed by Senor Ribero, the Peru-
vian Minister for Foreign Affairs, it is affirmed that the
attempt of the 24th April was less grave—that is to say,
the sequestration of the Chinchas on the ground of revin-
dication.

"In another Circular of the 25th August last the same
Minister states that the proposals transmitted through
Senor Moreira "were a graver offence to Peru than that of
the violent usurpation of a portion of territory and the cap-
ture of a ship of war.'
" The insult consisted in having offered the restitution of
the islands occupied and the conclusion of a treaty, the first
base of which would have been the recognition of the in-
dependence of Peru on condition that this Government
gave the moderate satisfaction required.
" Her Majesty's Government has gone to the extremes of
moderation and prudence ; explicitly disapproved the pro-
ceedings of the chief of the squadron and the diplomatic
agent in making use of the expression 'revindication' on
taking possession of the Chinchas Islands, not certainly as
the fundamental and exclusive motive, but as one of the
arguments serving as apology for their conduct in employ-
ing this coercive measure instead of others specified in
their instructions.

" The Government has frankly and expressly renounced
any views of aggrandizement and any project of reconquest
in the continent that some time formed part of the Spanish
Monarchy. Before the occupation of the Chinchas was
known in Europe, it had already protested on the 24th of
May, against any such design as that attributed to it of re-
covering forgotten rights, and immediately the news ar-
rived it reiterated its protests in the clearest and most im-

pressive manner.
"It further declared that Spain considered Peru as a n
independent, free, and sovereign nation, even though through
culpable discourtesy it had not been able to advance in the
regular measures leading to the solemn formula of recogni-
tion. By the language it employed, the forms of which it
made use, and the frankness of its declarations, her Ma-
jesty's Government displayed the most deferential respect
towards the Peruvian nation, not only in just demands, but
even in -the most exaggerated scruples of courtesy.
"It did more, however, by waiving a long and compli-
cated series of complaints, the discussion and clearing up
of which would have infallibly contributed to the prolon-
gation of the conflict, and consented to reduce its demands
to the latest and most manifest grievances. In this man-
ner it was hoped that the difficulty had an easy termina-
tion, and that by obtaining satisfaction for the most recent
grievances the Spanish nation considered all former
offences atoned for. It is not only in the terms of its
official documents and the form of its demands that the
Spanish Government has shown itself conciliatory and
equitable. It has been equally so in its arrangements and
acts. Your Excellency will not have forgotten that upon
taking possession of the Chinchas our agents declared that
the guano existing upon them would continue to serve as a
lien for the sums advanced to Peru by foreign subjects
under the guarantee of this security, provided that the
respective contracts had been previously approved and
published.
" They likewise promised that the foreign companies in-
terested in the said contracts should continue to export the
guano, rendering an account to her Majesty's Government
of the number of tons embarked.
"With such scrupulous fidelity has this undertaking
been fulfilled that the guano trade has not experienced the
least obstacle, nor has the Spanish occupation given rise to
the slightest complaint on the part of those engaged therein,
or the creditors protected by this guarantee. This has been
stated in Madrid by the representatives of various foreign
nations, and is further attested by the silence maintained
upon the matter by the Peruvian Government, generally
little guarded in the expression of its complaints. Neither,
even, has any rigour been used up to the present in ascer-
taining whether exportations of guano were made solely
on account of contracts previously concluded or for very
different objects.
" The ambitious projects attributed to us at Lima are
thus reduced to these limits. Our sailors hold and guard
this species 'of rich factory, while those of Peru dispose of
the guano of the Chinchas, not only to satisfy previous ob-
ligations, but also according to trustworthy)nformation, to
expend the proceeds thereof in preparation and armaments
against our squadron.
" However strange such condescension may appear, her
Majesty's Government does not consider it excessive, since
it now serves to prove the generosity of its conduct, and be-
fore long will perhaps be useful to justify the necessity of
more'severe:and vigorous measures. In any case the profound
respect that it has professed, and will always profess, for
legitimately acquired rights and general commercial and ag-
ricultural interests of other nations, will be manifest.
"But the Peruvian Governmenthas not desponded as was
expected to so many signal proofs of moderation and pru-
dence. To the conciliatory Circular of the 24th of June it
replied in documents of a style and character very different
from the proposals for an arrangement communicated through
Senor Moreira, 'Consul in Spain, and by the dismissal of
that functionary on the sole ground of having served as the
medium of our proposals for an understanding. Thisproves
once more that the Peruvian Government persists in the in-
tention which it has always manifested of closing every way
of negotiation and arrangement, first refusing to ratify the
treaty signed by its plenipotentiary, without even deigning
to state the reasons of its conduct, withdrawing its consuls
from Spain, and rejecting subsequently, on two distinct
occasions, the amicable intervention of France— a friendly
and impartial nation, the representative of which endeavoured
to extend his protection to the Spaniards resident in Pent.
It refused later to treat with the agent sent to Limaby Her
Majesty's Government, declaring its proposal for an amicable
arrangement injurious and insulting, instead of discussing
it and bringing forward another, and finally dismissed its
commercial agent in the Peninsula solely for having trans-
mitted the arrangement proposed by the Spanish Govern-
ment.
" The last act of which we have intelligence is a certain
resolution recently adopted by the Congress at Lima, by
virtue of which that Government will have to declare war
against Spain if the latter refuses to give satisfaction, which
certainly it is impossihle for us to concede who have so
much right to demand it.
" Such a proceeding necessarily gives ground for un-
favourable interpretations. Grant that the Government of
Peru is very upright, and the nation too enlightened not to
listen to the dictates of reason and prudence, still it cannot
be ignored that in its relations with other States, and espe-
cially with Spain, the said Government makes use of un-
usual and irregular forms ; and further, considering the
disorderly passions which surround it, may it not be sus-
pected that under the pressure of foreign influences there
has failed to preside at its resolutions and acts all the sere-
nity and independence required for the exercise of public
authority ?
" I speak exclusively of its acts in as far as they refer to
the course and direction of international affairs, the sole
aspect under -which I have an interest, as well as right and
intention to pronounce upon them.' It may, in like manner,
be apprehended that the Circular and proposals for an ar-
rangement, of the 24th and 25th of June, were wrongly in-
terpreted at Lima, the spirit of moderation and prudence by
which they were dictated being attributed to weakness and
vacillation, without reflecting that the moderation of Go-
vernments on such occasions is usually, and was certainly
in this case, a sure indication and precursor of the firmness
of their intentions.
"Be this as it may, her Majesty's Government perse-
veres in the same desires and proposals for an understand-
ing, the change of Ministry in Spain forming no obstacle,
since changes of this nature are quite reconcilable with the
identitylof views necessary for the guidance of international
policy ; and it will not certainly be our wish that anything
should. oppose a speedy and satisfactory arrangement, if,
after reflection, the Peruvian Government now accepts the
basis laid down in the proposal of the 25th of June. The
legitimate redress demanded in that document being ob-
tained, her Majesty's Government would leave Peru in pos-
session of the Chincha Islands, and a treaty of peace might
shortly be concluded establishing and regulating friendly
relations between both nations.
If, on the contrary, the Government of that Republic
persists in the determination it has manifested of refusing
to enter into terms of arrangement, and in declaring, as
hitherto, all complaints unfounded and all proposals inad-
missible, the time willvery shortly arrive to renounce nego-
tiation and resort to the use of those measures only justifi-
able, as they 'certainly now are, when supported by right
and recommended and demanded by the most imperious
necessity. From June to the present time many months
have elapsed, but time has not allowed the voice of justice
to be heard in Pent, nor the most disinterested and friendly
counsels to obtain consideration.
"Meanwhile the prolonged stay in Pacific waters of the
Spanish squadron, which it has been necessary to reinforce,
by occasioning expenses and material losses, is contrary to
the political views of this Government, inclined, without
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" In view of the eventualities that may arise from this
determination her Majesty's Government has deemed it