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This Government understands that any differences which may arise with respect to the execution of the clause I have cited are to be decided by the Arbitrator, in accordance with the stipulation in Article I of the General Treaty of Arbitration signed this day.

Trusting that your Excellency will be good enough to inform me of the view of your Government in this respect, I have, etc.,

[Signed] JOSÉ FRANCISCO VERGARA DONOSO.

Señor Terry to Señor Donoso.

[TRANSLATION.]

M. LE MINISTRE,

SANTIAGO, May 28, 1902.

I have had the honour to receive your Excellency's note of this date, by which you are good enough to inform me that your Government interprets the second part of Article I of the Convention respecting the limitation of armaments in the sense that any difference which may arise and which cannot be settled directly between the Chanceries within the year shall be a matter for general arbitration, in accordance with the Treaty signed to-day.

In reply, I have the honour to inform your Excellency that my Government places a similar interpretation on the above-mentioned clause.

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Señor Don José Francisco Vergara Donoso, Minister for Foreign Affairs of Chile, and Señor Don José Antonio Terry, the Argentine Envoy Extraordinary and Minister Plenipotentiary of the Argentine Republic, having met together in the Ministry for Foreign Affairs of Chile in order to remove the slight doubts which have arisen in both countries, and to give to the Agreements signed on the 28th May last the full value of the high aims with which they were signed, and being duly authorized, declared that their respective Governments agreed:

1. That the carrying out of existing Treaties, or of others which may be rendered necessary by them, which question is referred to in the Preliminary Declaration in the Treaty of Arbitration, cannot be the subject of Arbitration between the two Parties, and consequently neither of the

contracting Governments has the right to interfere with the manner in which the other may choose to give effect to those Treaties.

2. That the carrying out of paragraph 2 of Article I of the Convention concerning naval armaments, in virtue of which a just balance between the two fleets was to be established, shall not necessitate the sale of vessels, but that this just balance may be arrived at by a disarmament or by other means to the extent required, in order that both Governments may retain the necessary fleets, the one for their natural defence and for the permanent safeguard of the Republic of Chile in the Pacific, and the other for the natural defence and the permanent safeguard of the Argentine Republic in the Atlantic and in the River Plate.

3. That the Agreements referred to having been submitted to the respective Congress of both countries, the present instrument shall likewise be brought to the knowledge of those bodies.

In faith whereof the Undersigned have hereunto affixed their signature in duplicate at Santiago, this 10th day of July, 1902.

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Agreement concluded and signed between the Argentine Republic and Chile on the 9th January, 1903, giving effect to the terms of the Convention of May 28, 1902, for the Limitation of Naval Armaments.

[TRANSLATION.]

His Excellency Dr. Luis M. Drago, Minister for Foreign Affairs and Worship, and his Excellency Don Carlos Concha, Envoy Extraordinary and Minister Plenipotentiary of Chile, having met together in the Department of Foreign Affairs and Worship in Buenos Aires, on the 9th of January, 1903, with the view of giving effect to the just balance which both countries have decided to establish between their respective fleets, in conformity with the Treaty on Naval Armaments signed on the 28th May, 1902, with the notes exchanged on the same date between the Chilean Ministry and the Minister Plenipotentiary of the Argentine Republic, and, with the Protocol which was signed on the 10th July, 1902, relating to the same matter, and, after having exchanged their respective powers, which were found in due form, have agreed to the following arrangement:

ARTICLE 1. The Argentine Republic and the Republic of Chile shall

hereafter, and in the shortest time possible, sell the vessels of war now building for them, for the former in the ship-yards of Ansaldo (Italy) and for the latter in those of Messrs. Vickers and Messrs. Armstrong (England), according to the stipulations set forth in paragraph 1 of Article 1 and in Article 3 of the Agreement of the 28th May, 1902. In the event of its not being possible from any cause to carry out the sale immediately, the High Contracting Parties may continue the building of the said ships, until they are completed, but in no case shall they be added to the respective fleets; not even with the previous notice of eighteen months required for the increase of naval armaments by the 2nd Article of the above-quoted Agreement.

ART. 2. Both the High Contracting Parties mutually agree immediately to put the vessels at present building at the disposal and at the orders of His Brittanic Majesty, the Arbitrator appointed by the Treaty of the 28th May, 1902, informing him that they have agreed that the vessels shall not leave the yards where they actually are except only in case both High Parties jointly request it, either because their sale has been effected or in virtue of a subsequent Agreement.

ART. 3. The two High Contracting Parties shall immediately communicate to the ship-builders the fact that the vessels have been placed, by common consent of both Governments, at the disposal of the Arbitrator designated in the Treaty of the 28th May, 1902, without whose express order they may not be delivered to any nation or individual.

ART. 4. In order to establish the just balance between the two fleets, the Republic of Chile shall proceed to disarm the battle-ship "Capitán Prat," and the Argentine Republic to disarm its battle-ships "Garibaldi " and "Pueyrredon."

ART. 5. In order that the vessels may be considered disarmed, in accordance with the foregoing Article, they must be moored in a basin or port, having on board only the necessary crew to attend to the preservation of the material which cannot be removed, and they must have landed

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All coal.

All powder and ammunition.

Artillery of small calibre.

Torpedo tubes and torpedoes.
Electric search-lights.

Boats.

All stores of whatever kind.

For their better preservation it is permissible to roof in the decks.

ART. 6. The vessels mentioned in Article 4, which both Governments agree to disarm, shall remain in that state, and may not be rearmed without the previous notice of eighteen months which the Government who wishes to do so is obliged to give to the other Government, except in case of a subsequent Agreement or of their alienation.

ART. 7. Both Governments shall request the Arbitrator appointed by the Treaties of the 28th May, 1902, for the purpose of arranging difficulties to which questions on naval armaments may give rise, to accept the duties resulting from the present Agreement, for which purpose an authenticated copy thereof shall be sent to him.

In witness whereof the respective Plenipotentiaries sign and seal the present in duplicate.

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Treaty of Obligatory Arbitration between Argentine Republic, Bolivia, Dominican Republic, Guatemala, Mexico, Paraguay, Peru, Salvador, Uruguay. Signed at International American Conference, January 29, 1902.

The undersigned, Delegates to the second American International Conference from the Argentine Republic, Bolivia, Dominican Republic, Guatemala, El Salvador, Mexico, Paraguay, Peru, and Uruguay, assembled in the City of Mexico, who are duly authorised by their respective governments, have agreed to the following articles:

ARTICLE 1. The High Contracting Parties bind themselves to submit to the decision of arbitrators all disputes that exist or may arise between them, which they may not be able to settle by diplomatic means, whenever, in the exclusive judgment of any of the interested nations, such disputes do not affect the national independence or the national honor.

ART. 2. Neither the national independence nor the national honour shall be considered as imperilled by any dispute about diplomatic privileges, boundaries, rights of navigation, or the validity, interpretation, and fulfilment of treaties.

ART. 3. By virtue of the right recognised by Article 26 of the "Convention for the Pacific Settlement of International Conflicts," signed at The Hague on the 29th of July, 1899, the High Contracting Parties

'Darby, International Tribunals, (Fourth edition, 1904), page 726.

agree to submit to the decision of the Permanent Court of Arbitration, established by the said Convention, all the disputes, to which reference is made in this Treaty, unless any of the parties should prefer that a special tribunal should be organised.

In the event of their submission to the Permanent Court of Arbitration at The Hague, the High Contracting Parties shall comply with the provisions of the said Convention in so far as it relates to the organisation of the Arbitral Tribunal, as well as in respect to the procedure to which the latter shall be subject.

ART. 4. Whenever it may be necessary, from any cause whatever, to organise a Special Tribunal, either because any one of the parties may desire it or by reason of the Permanent Court of Arbitration at The Hague not being open to them, the procedure to be followed shall be established on the signing of the Arbitration Agreement. The Tribunal shall determine the date and place of its meetings and the language to be used, and shall in every case be invested with the power to determine all questions relating to its own jurisdiction, and even those referring to procedure on matters not provided for in the Arbitration Agreement.

ART. 5. If the High Contracting Parties, on the organisation of the Special Tribunal, should not have agreed as to the appointment of an Arbitrator, the Tribunal shall consist of three judges. Each State shall appoint an Arbitrator, and these shall designate an Umpire. Should they be unable to agree with reference to this designation, it shall be made by the Chief of a third State, who shall be nominated by the Arbitrators appointed by the Parties. Should they be unable to agree as to the last-mentioned appointment, each of the Parties shall designate a different Power, and the election of the Umpire shall then be made by the two Powers so designated.

ART. 6. The High Contracting Parties stipulate that, in case of grave disagreement or conflict between two or more of them, such as to render war imminent, recourse shall be had, so far as circumstances permit, to the good offices or mediation of one or more of the friendly Powers.

ART. 7. Independently of this recourse, the High Contracting Parties consider it useful that one or more Powers that are not concerned in the conflict, should spontaneously offer, so far as opportunity is presented, their good offices or their mediation to the States at variance.

The Powers not concerned in the conflict have the right of offering their Good Offices or Mediation, even during the course of hostilities.

The exercise of this right can never be considered by either of the Contending Parties as an unfriendly act.

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