¹ Platt, D. C. M., Latin America and British Trade, 1806–1914 (London, Adam and Charles Black, 1972), pp. 316–21.Google Scholar

² Roberto Córtcs, Conde, The First Stages of Modernization in Latin America (New York, Harper & Row, 1974), p. 66.Google Scholar

³ For this, see Heraclio, Bonilla, Guano y Burguesla (Lima, IEP/Campodónico, 1973);Google ScholarShane, J. Hunt, ‘Growth and Guano in Nineteenth Century Peru’; (Discussion paper No. 34, Woodrow Wilson School, Princeton, 1973);Google ScholarCarlos Camprubi, Alcázar, Historia de los Bancos en cl Perú, 1860–1879 (Lima, Editorial Lumen, 1957);Google ScholarRobert, G. Greenhill and Rory, M. Miller, ‘The Peruvian Government and the Nitrate Trade, 1873–1879’;, Journal of Latin American Studies, 5, 1 (1973), 107–31;Google ScholarLevin, J. V., The Export Economies: their Pattern of Development in Historical Perspective (Cambridge, Mass., Harvard University Press, 1960);Google ScholarErnesto Yepes del, Castillo, Perú, 1820–1920: un Siglo de Dearrollo Capitalista (Lima, IEP/Campodónico, 1972);Google ScholarOscar Bermúdez, Miral, Historia del Salitre desde sus on genes hasta la Guenra dcl Pacifico (Santiago, Universidad de Chile, 1963).Google Scholar

⁴ See, for example, Jesús, Chavarría, ‘La desaparición del Perú colonial, 1870–1919’;, Aportes, No. 23 (01, 1972), pp. 120–53.Google Scholar

⁵ Yepes, , op. cit., pp. 136–40.Google Scholar

⁶ Platt, D. C. M., Finance, Trade, and Politics in British Foreign Policy, 1815–1914 (Oxford, Clarendon, 1968), pp. 336–9;Google ScholarHarold, Blakemore, The Chilean Revolution of 1891 (unpublished Ph.D. thesis, London, 1955), pp. 74–96, 193–207, 412–18;Google Scholar and his ‘Limitations of dependency: an historian's view and case study ’;, Boletin de Estudios Latinoamericanos y del Caribe, No. 18 (06, 1975), 74–87,Google Scholar which looks at the question from the Chilean side; Wynne, W. H., State Insolvency and Foreign Bondholders II (New Haven, Conn, Yale University Press, 1955), pp. 109–95.Google Scholar See also Kiernan, V. G., ‘Foreign Interests and the War of the Pacific’;, HAHR, 35, (1955), 14–36.Google Scholar

⁷ Greenhill, and Miller, , op. cit., p. 108.Google Scholar

⁸ William, Clarke, Peru and its Creditors (London, 1877), pp. 13–20.Google Scholar

⁹ President Pardo's speech to Congress, 21 09 1872, Diario de Debates, Cámara de Diputados, 1872, II, pp. 67–72.Google Scholar

¹⁰ Mathew, W. M., ‘Peru and the British Guano Market, 1840–1870’, Economic History Review, 2nd series, 23, 1 (1970), 112–28;Google Scholar on the competition from nitrate, see Greenhill, and Miller, , op. cit. pp. 107–18.Google Scholar

¹¹ Duffield, A. J., Peru in the Guano Age (London, 1877), pp. 120–1;Google Scholar Report on the Finance, Trade, and Industry of Peru (Spencer St, John), Parliamentary Papers, 1878, 72, 560.Google Scholar

¹² The Times, 12 04 1876; Lord Tenterden to Sir Charles Russell (chairman of the Bondholders'Committee), 13 April 1876. London, Public Record Office, Peruvian Archive (F.O. 61), Vol. 323.Google Scholar

¹³ Echo. 8 06 1876;Google ScholarStandard, 8 06 1876;Google ScholarBullionist, 10 06 1876;Google ScholarThe Times, 9 06 1876.Google Scholar

¹⁴ Minute of Sir Julian Pauncefote, 2 Oct. 1878, FO 61/323; Salisbury's minute on James Croyle (president of International Committee of Bondholders) to Salisbury, 18 Sept. 1878, FO 61/323. For Palmerston's circular of 1848, see Platt, Finance, Trade, and Politics, pp. 398–9;Google Scholar for the Foreign Office role in an earlier dispute, see Mathew, W. M., ‘The First Anglo-Peruvian Debt and its Settlement’, Journal of Latin American Studies, 2, 1 (1970), 112–28.CrossRefGoogle Scholar

¹⁵ St, John to Salisbury, , 10 06 1879, FO 61/323.Google Scholar

¹⁶ Russell, to Salisbury, , 1 11 1879;Google ScholarPauncefote, to Russell, , 21 04 1879, FO 61/323.Google Scholar

¹⁷ St, John to Salisbury, , 2 10 1879, FO 61/323.Google Scholar

¹⁸ Decree of 22 02 1880, ‘Correspondence between Minister Plenipotentiary of Chile and the Bondholders'Committee’, p. 48, Peruvian Corporation Archive, University College, LondonGoogle Scholar (hereafter PC/UCL); Pakenham, (minister in Santiago) to Salisbury, , 14 02 1882, FO 65/344.Google Scholar

¹⁹ Granville, to Waddington, (French minister in London), 17 04 1884, FO 61/357.Google Scholar

²⁰ Fraser, Google Scholar (minister in Santiago) to Salisbury, , 1 09 1885, FO 62/367.Google Scholar

²¹ Memo. by Pauncefote, 6 05 1886, FO 61/368; The Times, 11 11 1886.Google Scholar

²² El Comercio (Lima), 14 09 1889;Google ScholarSouth Pacific Times, 9 01 1880.Google Scholar

²³ John, Meiggs to Charles, Watson, 8 01 1884, Caja 6/4, Peruvian Corporation Archive (hereafter PC) Lima.Google Scholar

²⁴ El Comercio, 14 09 1889.Google Scholar

²⁵ Ibid.; Ministerio de Fomento, Anales de Obras Públicas, 1886 (Lima, 1890), pp. 86–90 and 100–9.Google Scholar

²⁶ Joseph, Spinney to Charles, Watson, 25 06 1885, Watson letters, Meiggs archive, PC/Lima (hereafter Watson letters); El Comercio, 16 09 1889.Google Scholar

²⁷ El Comercio, 21 09 1887, quoting an interview with Grace in New York Times, 31 08 1887.Google Scholar

²⁸ Anon, , La Deuda Externa y la Cámara de Diputados (Lima, 1888), p. 5.Google Scholar For the first project, see José Maria, Rodriguez, Anales de la Hacienda Pública del Perú, 1821–1895 (19 vols., Lima, 1912–28), 17, 401a–6a.Google Scholar

²⁹ ‘Memoria del Ministro de Hacienda al Congreso, agosto de 1887’, in Rodríguez, 18, 268a.Google Scholar

³⁰ Rodríguez, , XVIII, 19; xvi, 133;Google ScholarCharles, Watson to Charles, Watson, jnr, 18 04 1887, Watson letters.Google Scholar

³¹ El Comercio, 8 01 1889.Google Scholar

³² Ibid., 30 08 1886.

³³ Anales de Obras Púlicas, 1886, pp. 600–1;Google ScholarAnalex de Obras Públicas, 1887 (Lima, 1890), pp. 248–9.Google Scholar

³⁴ Charles, Watson to Charles, Watson Jr, 13 06 1888, Watson letters.Google Scholar

³⁵ In 1881 it was estimated that British speculators held between £24 and £25 million, French £ 1½ million, with the balance in the hands of Italians, Germans, Belgians, Dutch. Pakenham to Granville, 4 Dec. 1881, FO 65/344.

³⁶ ‘Report of the presidential commission of Francisco García Calderón, Francisco Rosas, and Aurelio Denegri, dated 24 November 1886,’ in Rodriguez, loc. cit., 17, 407a–23a.Google Scholar

³⁷ Ibid.

³⁸ The Grace-Araníbar contract is in ‘ Circular of the Committee of Peruvian Bondiiolders, 3 June 1887’, appendix, PC/UCL.

³⁹ Fraser to Salisbury (very confidential), 2 Feb. 1888, FO 61/378.

⁴⁰ Fraser to Salisbury (very confidential); 13. April 1888, FO 61/379; Sir Chales Mansfield (minister in Lima) to Salisbury, 6 May 1889, FO 61 /383.

⁴¹ According to the Earl of Donoughmore, the Pernvians were ‘in an awful fright of the Chileans ’, Donoughmore to Lady Mary Loyd, 16 July 1889, Donoughmore letters. I am grateful to the present Earl for allowing me to see his grandfather's papers.

⁴² El Cornercio, 16 03 1887.Google Scholar

⁴³ Charles, Watson to Charles, Watson Jr, 22 07 1887, Watson letters.Google Scholar

⁴⁴ El Comercio, 5 10 1887.Google Scholar

⁴⁵ Charles, Watson to Charles, Watson Jnr, 2 11. 1887, and 16 11. 1887, Watson letters.Google Scholar

⁴⁶ El Comercio, 3 10 1887.Google Scholar

⁴⁷ Ibid., 29 09 1887.

⁴⁸ Charles, Watson to Charles, Watson Jnr, 16 11. 1887, Watson letters.Google Scholar

⁴⁹ Idem, to idem., 15 12 1887, in ibid.

⁵⁰ Rodríguez, , loc. cit. xviii, 67–71.Google Scholar

⁵¹ Charles, Watson to Charles, Watson Jnr, 22 07 1887, Watson letters.Google Scholar

⁵² El Comercio, 4 02. 1888, and 8 02. 1888.Google Scholar

⁵³ Lord, Donoughmore to Pauncefote, , 10 02. 1888,Google Scholar enclosing Ollard, to Donoughmore, , 10 02. 1888, FO 61/378.Google Scholar

⁵⁴ Charles, Watson to Charles, Watson Jnr, 25 07 1888.Google Scholar

⁵⁵ Watson later commented that the Earl of Donoughmore, a member of the Committee, was ‘very intimate’ with Sir Julian Pauncefote, the under-secretary at the Foreign Office, and had ‘been useful in bringing pressure on Chile and Peru’. Charles, Watson to Charles, Watson Jnr, 8 08. 1888, Watson letters.Google Scholar

⁵⁶ Memo of Pauncefote, , 11 02. 1888, FO 61/378.Google Scholar

⁵⁷ See Platt, , Finance, Trade, and Politics, pp. 34–53.Google Scholar

⁵⁸ Salisbury, to Newman, (consul-general in Santiago), 18 07 1888, FO 61 /39.Google Scholar

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⁶⁰ For the Donoughmore-Aspíllaga contract, and the protocol, see Rodriguez, , op. cit., xix, 341a–52a. The contract eventually accepted by Peru and the bondholders is in ‘Circular of the Committee of Peruvian Bondholders, 29 November 1889’, PC/UCL. It was the Donoughmore-Aspíllaga contract that came into force in 1890 with a few modifications. It has always been known, however, as the Grace contract after the éminence grise of the whole affair.Google Scholar

⁶¹ El Comercio, 10 11 1888.Google Scholar

⁶² Verbatim report of preliminary session of the Cámara de Diputados on 27 July 1888, in El Comercio, 13 08 1888.Google Scholar

⁶³ El Cormercio, 15 02 1889.Google Scholar

⁶⁴ Nominal lists for the five divisions are to be found in Rodríguez, , loc. cit., XIX, 47, 50, 70–1, 78–9.Google Scholar

⁶⁵ El Comercio, 2 04 1888.Google Scholar

⁶⁶ South American Journal, 4 05 1889.Google Scholar

⁶⁷ El Comercio, 8 04 1889.Google Scholar

⁶⁸ Charles, Watson to Charles, Watson Jnr, 25 07 1888.Google Scholar

⁶⁹ ‘Circular of Bondholders'Committee, 29 April 1889 ’, Appendix, PC/UCL.

⁷⁰ Kennedy, J. G. to Salisbury, (confidential), 18 11. 1889, FO 61/384.Google Scholar

⁷¹ Robert, N. Burr, By Reason or Force: Chile and the Balancing of Power in South America,1830–1905 (Los Angeles, University of California Press, 1974 ed.), pp. 184–8.Google Scholar

⁷² Tne text of these agreements is in ‘Circular of the Committee of Peruvian Bondholders, 2 April 1890’, PC/UCL. In 1893, after further delays due to French protests and Chilean prevarication, the bondholders received from Chile £300,000 cash and £630,000 in 4½4% bonds. However the issue led to continued lawsuits which were not finally settled until 1921. See Joel (consul-general in Santiago) to Rosebery, , 27 01. 1893, FO 61/404;Google ScholarWynne, , op. cii., pp. 161–9.Google Scholar

⁷³ ‘Circular of Committee of Peruvian Bondholders, 26 05 1884’, PC/UCL; The Times, 27 May 1884; The Times, 31 Dec. 1884.Google Scholar

⁷⁴ Yepes, , op. cit., p. 173;Google Scholar for the parallel story in nitrates, see Harold, Blakemore, British Nitrates and Chilean Politics, 1886–1896: Balmaceda and North (London, Athlone Press, 1974), pp. 21–2 and 27–9;Google Scholar see also Emilio, Romero, Historia Económica del Perú (Buenos Aires, 1949), p. 379.Google Scholar

⁷⁵ Charles, Watson to Charles, Watson Jnr, 19 09. 1887, Watson letters.Google Scholar

⁷⁶ Idem. to idem. Jnr, 22 July 1887, and 28 Aug. 1887, in ibid.

⁷⁷ John, Meiggs to Charles, Watson, 8 01. 1884, Caja 6/4, PC/Lima. My italics.Google Scholar

⁷⁸ Platt, , Finance, Trade, and Politics, p. 46.Google Scholar

⁷⁹ Daily Telegraph, 21 02 1884,Google Scholar and Statist, 29 10 1887.Google Scholar

⁸⁰ Salisbury, to Kennedy, (telegraphic), 18 12. 1889, F.O. 61/384.Google Scholar

⁸¹ At the Annual General Meeting of the Peruvian Corporation in Dec. 1892, the chairman told shareholders that the company could not afford to complete 160 km. of railway that it was obliged to under the Grace contract. For its part the Peruvian Government paid the Corporation £25,000 of the annuity when it first became due in 1893. This was, however, only with the greatest difficulty at a time when trade was depressed throughout South America, and as it became clear that the Corporation would not complete its obligations, the Government ceased to try to pay the annuity. This resulted in a protracted dispute between the Peruvian Corporation and the Peruvian Government which was finally settled only in 1907. ‘Report of Proceedings at Annual General Meeting of the Peruvian Corporation, 15 December 1892’ p. 2, PC/UCL; El Comerio, 22 01 1896;Google Scholar Report on the Finances Trade, and Commerce of Peru (Charles, Mansfield Sir), Parliamentary Papers, 1893–1894, xcv, 802–3; ‘Directors'Annual Report, December 190’, Appendix, PC/UCL.Google Scholar

⁸² For, a more detailed analysis of the relations between the Peruvian executive and Congress on the question of foreign concessions between 1885 and 1930, see Miller, Rory, ‘The Peruvian Government and Foreign Firms, 1885–1930’, Business Imperialism: an enquiry based on British experience in Latin Ametica before 1930, ed. Platt, D. C. M. (London, Clarendon Press, forthcoming).Google Scholar

⁸³ South American Journal, 15 02 1890.Google Scholar

⁸⁴ Report on the Trade and Commerce of Callao (Vice-consul Wilson, ), Parliamentary Papers, 1890, Lxxvi, 425.Google Scholar

⁸⁵ José Carlos, Mariátegui, Seven Interpretive Essays on Peruvian Reality (Austin, University of Texas Press, 1974), p. 13.Google Scholar

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⁸⁷ Jorge, Basadre, Historia de la República del Perú (5th ed., Lima, Ediciones “Historia”, 1964), VI, 2770–2.Google Scholar

⁸⁸ ‘Report of the Peruvian Bondholders'Committee, 30 January 1890’, p. 8, PC/UCL. The construction cost of the Southern and Central railways had been £10.6 million by 5890, but by then their capital value was far less as no repairs had taken place since 1875 and there had been no re-equipment although there had been considerable physical destruction of plant in the war with Chile and during the civil strife that followed. For the original cost of the railways see ‘Reseńa: Transferencia de los Ferrocarriles,. Descripción de los mismos’, pp. 24–37, typescript in Caja 36/4, PC/Lima.

⁸⁹ Rory, Miller, ‘Railways and Economic Growth in central Peru’, Social and Economic Change in Modern Peru, Rory, Miller, Clifford, Smith, and John, Fisher, ed. (Liverpool, Centre for Latin American Studies, forthcoming).Google Scholar

⁹⁰ Agreement of 12 Dec. 1889 between Grace and the Bondholders'Committee in ‘Contracts and Documents, 1890’, PC/UCL.

⁹¹ ‘Reseńa: Transferencia de los Ferrocarriles, Descripción de los mismos’, p. 24,Google Scholar Caja 36/4, PC/Lima; Charles, Watson to Charles, Watson Jnr, 22 07 1887 and 28 08. 1887, Watson letters.Google Scholar

⁹² ‘The Corporation appears to be spending too largely on colonisation, exploration, surveys, &c. probably under the Grace-Ollard influence’, wrote Herbert Gibbs at the beginning of a campaign by Gibbs to oust the company's management; Herbert, Gibbs to Harry, Gibbs,8 12. and 15 12. 1893. London, Guildhall Library, Archives of Antony Gibbs and Son, File 11,040/2.Google Scholar

⁹³ Grace bought the Cartavio hacienda from Guilermo Alzamora in 1882, but did not really begin to develop it until he formed the Cartavio Sugar Company in 1891. See Peter, F. Kiaren, Modernization, Dislocation, and Aprismo: Origins of the Peruvian Aprista Party, 1870–1932 (Austin, University of Texas Press, 1973), p.9.Google Scholar Although the Grace interests did not buy the Vitarte Cotton Mill outright till 1917, both Michael Grace and the Peruvian Corporation had taken an interest in the Peruvian Cotton Manufacturing Company, a firm established in 1890 to get control of the Vitarte mill. See ‘Memoria del Ministro de Hacienda, 9 08 1890’Google Scholar in Rodriguez, , loc. cit., xxi, 82, and ‘Annual Reports of Board of Directors of Peruvian Corporation’, Revenue Accounts, 1898–1900, PC/UCL.Google Scholar