LATIN AMERICA: Secret Out

At Santiago, Chile, the local press succeeded in obtaining the text of U.S. Secretary of State Kellogg's secret proposal for compromise between Chile and Peru as to what shall be done with the disputed area of Tacna-Arica, claimed by both for half a century (TIME, April 19 et ante). The Text: "The Secretary of State has the honor to suggest that in the interest of international peace and a cordial rapprochement between the parties [Chile and Peru], they consider the advisability of a mutual and joint sacrifice whereby either—

"1) The territory of Tacna and Arica shall be constituted a neutralized state, either independent or under the protectorate of South American states, as may be agreed, or

"2) The provinces of Tacna and Arica shall be transferred (upon an apportionment of equitable compensation, and appropriate economic arrangements, to be agreed upon) to a South American state not a party to these negotiations.

"As neither party is willing to surrender the territory in question to the other, and as the proposal for a division of the territory between them has been rejected, the remaining opportunity for a solution of the longstanding controversy would appear to be found in one of the suggestions above named, or in a modification thereof if such is deemed to be advisable."