The New York herald., 1869-12-27

| amR-Oipi0matic Aniiirs--The Mixed Conn
| nission-<;enerai News.
| LIMA Nov. g. 1859.
| The long discussed question concerning the Drey
| fus loan To the government Is at last approaching
| conclusion 1t win be recoected that this matter
| has occupied public attention In Peru since July
last and being affair in which the pockets OF the
people were Intimately concerned. the greatest inter-
est has been manifested regarding 1t. Despite OF the
| determined opposition on the part OF the country
generally to the sale OF 2Oo0O 900 tons OF gusno to
the French house under terms highly advantageous
| to the purchaser, the government pressed for
money and with a'mutitude or clamorous creditors,
Insisted upon carrying out the negotiation, and ap.
| peared to be indexlbe in this determination.
| The most dangerous opponents, however,
| were found In tue Peruvian capitalists,
VINO, naturally, discounted at seeing the proba-
bty Of such rich prize alippng from their hands.
| more especially as they had made offers more ac-
ccptable in public opinion than those OF Dreyfus.
Basing their claim existing law these capital.
lists declared the legal rights held by Peruvans over
foreigners ia all cases where the national treasure
| OF gaaEo was concerned. After long period OF
suspense the supreme Court OF Peru has decided
! this point IN favor OF the Peruvian bankers and
| against the house OF Dresfus. Now commences the
real conflict. Dreyfus has n anticipation OF success,
| advanced large sums or money 10 the government,
and the President counseled by his brother, the
Minister OF War appears 10 be resolute in his deter
mnalion TO consider the contract legal despite the
courts and people. But an nsuperable difficulty Dere
arises Dreyrus manlfests decided and most praise
worthy unwillingness TO employ the large sums re-.
I quired b. the terms OF the loan In matter con-
deulneo by entire nation and only upheld by the
President Of the republic, especially since the
terms OF the contract stpuate that IN no case snail
diplomatic intervention oe resorsed to. The moss
be called tor and VIII be adjudcsted TO tho lowest
bidder, Dreyfus or the Peruvians, rs the case may
be. Otherwise trouble will certainly ensue, II the
President persists III holding the negotiation
effective
| OF gallant little Paraguay aud NJ. Pacheco, when
Minister or Foreign Affairs under Prado, drew up
and published the celebrated remonstrance signed
by Peru, Ecuador, Bolivia and Chlle and asaented
BY Columbia, declaring that the action OF Brazil ana
her allies towards Paraguay tended to the destruc
uon OF sister republic. This note together with
some strong renarka made III Presidential message
by Prado condemnlns the conduct OF the allies, pro-
duceu the suspension OF diplomatic relations between
Brazil and Peru, which were only resumed about
| SIX months ago oy sending an Envoy Extra
o,anary ~ Inc @ coart oi 81 ldetonso r Ins
IN consequence OF too great display OF the OBJECTS
Of his mission, ana o new Envoy has recently been
appointed. This diplomatic agent Dr. Mesones, has
represented Peru In England, france ana Italy, and
is adnitted TO be a man OF very superior acquire
ments and Intelligence. 1t IS generally supposed
mere tina. the has for Its object the arrange
ment OF the affairs OF The Peruvian monitors now
lad up. In RIO Janelro and likely to remain there
for some time In order to receive those repairs
which appear to be necessary to them intervals OF
not more than SIX weeks. Your correspondent,
however, has learned that now the sympathy OF
Peau for Paraguay is To DO demonstrated III very
direct manner, ana IL is proposed TO follow In Brazil
the example set Paraguay by the United Stares.
the geographical proximity OF Brazil and Peru and
the increasing trade between the two nations on
their Amzonan waters render their relations mote
Intimate tian those OF the empire with any OF the
Paciac republics, and we are IN hopes that the
| mission niay succeed IN aiding Paraguay
the desire OF Peru, viewing the Brazilian
conduct AZ aggressive towards republican
nstitotion.to take such measures as win effectualy
prevelt any movement OF Brazil towards appropri
aung portions OF Peruvian territory bordering on
her own. Measures Of this description may be
necessary since Brazil has already manifested an
inclination 10 dispute the right OF Peru to certain
districts adjacent TO the Brazilian headwaters OF the
Amazon. Certainly the position OF the American
republics as to inspire the greatest confidence IN
her integrity and Justice. Peru however. Will not
be & backward In guarding her rights.
With the Capture and imprlsonnent OF Doctor
sssyedr formerly in p,ados n Cabinet and recently
have passed away Nevertheless the ardent devo.
towards overthrowlng The existing powers never
allows the government q moments peace. Within
ammunition and wariAe material have been
discovered in the immediate vicinity Of
affected nave shared Or. aavedra's fate Waile this
gentleman remains Ia prison there u little danger Of
the occurrence OF any formidable outbreak and even
were he at liberty It would be difficult to organize
serious revolution from the fact that no leader,
possessing the puOllc confidence could be pitched
upon Prado, the still popular favorite s content
In Chile with his vines ng trees the he has
established, and ne Is known ~ nave refused many
tempting offers 70 return and atemps the repossas
sion OF MS old Presidential dignity.
An important decree has received the Presidents
approval, that authorizing the construction OF
Tumbez, the border port with the republic Of
Ecuador. Already land line Is in operation from
north and with the exception Of lew miles OF snb.
marine wre, the whole northern coast OF Peru win
be speedily traversea by The line Ihis enterprise is
company composed Of some Of the most pro-
minent Peruvian capitalists, who, without ask.
have agreed to finish the work, placing Lima Ia
direct Geographic communication With Panama In
four years from the present date From 1umbsz
north the line Will be submarine and il is confidently
expected that the facilities offered TO bugness men
ana TO the governments CT Peru aud Ecuador for the
speedy transmission OF messages will render the
dertaking profitable IN its results. AT all events
this is another proof OF the progressive spirit OF
mel Bal.a IL Interested and decided In aiding all
measures that tend towards promoting the welfare
and consequent peace OF the country.
The mixed commission to decide all claims or
American citizens against Peru, and cics versa, IL
progressing well IN its labors. The members OF the
commission, both American aud Peruvian, appear
TO be acuated by sincere desire to DO Justice TO ali
parties and the claimants place the greatest in
fhe equity of the decisions to be made Tne govern
ment here has shown q most friendly spirit In the
matter, and Is desrous o: terminating nnay all OF
those questions that might possibly DISTURB the har
mony existing between the two nations.
Nothing more mas been said OF the dlsngreeabls
occurrence that took place IN the Bay or Csllao
laten ID my last correspondence. The government
Is perfectly satisfied with the explanations made by
the United States Legation IN this city aud the aar
rests In quiet.
Dr. Pedro Galvez mas been named Minister PIeni.
potentary OF Peru 70 France and England. This Ia
the second time that this gentleman has represented
his country al tae Tuleres and st. James.
Mr.. Edward Villcna Is appointed Secretary OF the
Peruvian Legation In Washington, In place OF the
lamented Mr. Medina.
Now that the yellow fever epoch Ia approaching,
the municipality ts busy taking every possible pre-
caution towards preventing the appearance OF this
formidable visitor and from the health OF the city
present we augur that the coming season VIII pass
without recurrence OF the dreaded epidemic.