The  Chilean  note  disclaims  any  intention  of  deter-
mining an  international  boundary  by  the  Decree  of  1904
which  is  a  measure  of  internal  administration,  and
quotes  from  the  the  Chilean  note  of  January  19,  1901
(Appendix,  p.  210),  to  the  same  effect.  The  Chilean
Government  then  refers  the  Peruvian  Government  to
the  official  Bertrand  reports  of  1903  and  1904  "in  which
are  rectified  the  errors"  contained  in  the  Peruvian
note  of  July  16th.     (Appendix,  p.  344.)

The  Bertrand  reports  of  1903  and  1904  referred  to
in  answer  to  the  Peruvian  contentions  are  too  long
and  detailed  to  be  summarized  here.  The  Arbitrator,
therefore,  is  respectfully  referred  to  these  reports
which  are  printed  in  full  in  the  Appendix.  (Appendix,
pp.  278;  334.)

In  the  Peruvian  note  of  January  30,  1.901,  it  had
been  intimated  that  the  borate  mines  of  Chilcaya  influ-
enced the  location  of  the  boundary  (Appendix,  p.  232) ;
and  this  intimation  was  revived  by  Senor  Alberto  Salo-
mon in  his  note  of  December  24,  1921,  in  which  he
alludes  to  the  borate  deposits  of  Chilcaya  as  the  reason
why  this  region  was  included  in  the  province  of  Ta-
rapaca.  (Appendix,  p.  573.)  It  may  be  said  that  this
charge  was  unwarranted  because  the  borate  deposits
were  at  the  time  of  the  Decree  of  May  4,  1904,  wholly
in  the  hands  of  private  grantees.  Some  of  the  con-
cessions had  been  conferred  by  Bolivian  authorities
and  others  by  Chilean  authorities.  The  Decree  of
May  4,  1904,  expressly  declares  that  its  provisions
would  not  affect  the  rights  previously  acquired  by
private  parties.    Moreover  Peru  had  been  advised,  on


The  Third  Question.  179

January  19,  1901,  in  effect  that  Chile  did  not  intend
to  give  international  significance  to  its  territorial  de-
marcation in  this  region  which  was  purely  for  adminis-
trative purposes.  (Appendix,  p.  215.)  Finally  the  ex-
port duty  collected  by  the  Chilean  Government  from
the  borate  deposits  in  that  region  is  so  insignificant
as  to  make  it  an  unimportant  matter  as  to  whether
the  deposits  were  in  Chilean  or  foreign  territory,  since
in  1921  the  Chilcayan  production  of  borate  was  only
122  tons.     (Anuario  Estadistico  de  Chile,  p.  36.)

The  question  is  whether  the  River  Ajatama  or  the
River  Caritaya  is  the  true  continuation  of  ■ l  the  ravine
and  River  Camarones"  declared  in  Article  III  of  the
Treaty  of  Ancon  to  be  the  southern  boundary  of  Arica.
