In January, 1864, the government of Peru issued invitations to all the governments of the Spanish nations of America to join in a congress to be held at Lima. The objects of the meeting as stated in the invitation were "to declare that the American nations represented in this congress form one single family," to improve postal facilities, to exchange statistical data, to provide for the settlement of all boundary disputes, and "to irrevocably abolish war, superseding it by arbitration, as the only means of compromising all misunderstandings and causes for disagreements between any of the South American republics." In accepting the invitation to the congress Colombia expressed the opinion that "the United States ought not to be invited, because their policy is adverse to all kind of alliances, and because the natural preponderance which a first-class power, as they are, has to exercise in the deliberations, might embarrass the action of the congress." So far as definite results were concerned, this congress at Lima was of no greater importance than its predecessors.

The French invasion of Mexico and the war between Spain and the republics on the west coast of South America in 1865-66 brought about a realization of their danger on the part of the Spanish-American republics and a fuller appreciation of the friendship of the United States. In the war between Spain on the one hand and the allied republics of Peru, Chile, Bolivia, and Ecuador on the other, the United States declared its neutrality as usual, but at an early period of the struggle Secretary Seward offered to mediate between the warring nations. Spain refused to accept this offer, and the war dragged on in a state of "technical continuance" merely. The offer of mediation was again renewed by Secretary Fish, with the result that a conference was held at the State Department in 1870 attended by the representatives of Spain, Peru, Chile, and Ecuador. While it was found impossible to conclude a formal peace, the delegates signed an armistice April 11, 1871, by which the de facto suspension of hostilities was converted into an armistice which was to continue indefinitely and could not be broken by any of the belligerents without three years' notice, given through the government of the United States, of intention to renew hostilities.[276]

Within ten years of the signature of this perpetual armistice, war broke out between Chile, on the one hand, and Peru and Bolivia, on the other (1879-83). The subject of dispute was the nitrate deposits of northern Chile. In 1880 Chile signed with Colombia an arbitration treaty which provided that in case the two parties should be unable in any given case to agree upon an arbitrator, the matter should be referred to the President of the United States. Article III of this treaty was as follows:

The United States of Colombia and the Republic of Chile will endeavor, at the earliest opportunity, to conclude with the other American nations conventions like unto the present, to the end that the settlement by arbitration of each and every international controversy shall become a principle of American public law.

A few weeks later, without waiting for the ratification of this treaty, Colombia issued invitations to the other Spanish-American republics to attend a conference at Panama for the purpose of securing their adherence to the treaty. The failure to include the United States in the invitation to the conference was explained by our minister to Colombia as being due "to the reason that the position assigned to the government of the United States by the proposed treaty is to maintain and exercise a friendly and judicial impartiality in the differences which may arise between the powers of Spanish America."[277] The continuance of the war between Chile and Peru led to the indefinite postponement of the conference.

On November 29, 1881, Secretary Elaine extended "to all the independent countries of North and South America an earnest invitation to participate in a general congress, to be held in the city of Washington on the 24th day of November, 1882, for the purpose of considering and discussing the methods of preventing war between the nations of America." He expressed the desire that the attention of the congress should be strictly confined to this one great object, and he expressed the hope that in setting a day for the assembling of the congress so far ahead, the war that was then in progress on the South Pacific coast would be ended, and the nations engaged would be able to take part in the proceedings.[278] In this expectation Mr. Blaine was disappointed. The war between Chile and Peru continued, and the invitations to the conference were withdrawn.

Toward the close of President Cleveland's first administration, the Congress of the United States passed an act authorizing the President to invite the republics of Mexico, Central and South America, Haiti, Santo Domingo, and the Empire of Brazil, to join the United States in a conference at Washington on October 2, 1889. Among the subjects proposed for discussion were the adoption of a customs union, the improvement of the means of communication between the various countries, uniform customs regulations, a uniform system of weights and measures, laws for the protection of patents and copyrights, extradition, the adoption of a common silver coin, and the formulation of a definite plan for the arbitration of international disputes of every character. When the conference assembled, Mr. Blaine was again secretary of state, and presided over its opening sessions. The conference formulated a plan for international arbitration and declared that this means of settling disputes was "a principle of American international law." Unfortunately this treaty was not ratified by the governments whose representatives adopted it. The most lasting achievement of the conference was the establishment of the Bureau of American Republics in Washington. While the conference was in session Brazil went through a bloodless revolution, which converted the empire into a republic. Thus disappeared the only independent monarchy of European origin which ever existed on American soil.

Scarcely had the Washington conference adjourned, when the United States and Chile got into an ugly wrangle and were brought to the verge of war over an attack on American sailors on shore leave at Valparaiso. During the civil war between President Balmaceda and the Congressional party, the American minister, Mr. Egan, admitted to the American legation certain adherents of the President. The people of Chile resented the action of the American minister, and were further aroused against the United States by the detention of the Itata, a vessel which left San Diego, California, with a cargo of arms for the Congressional party and was overhauled by an American warship. The United States cruiser Baltimore was lying in the harbor of Valparaiso when news of this incident was received. Members of her crew who happened to be on shore leave were attacked by the populace and several of them killed. As this attack upon American sailors appeared to be due to resentment against the official acts of their government, an apology was immediately demanded, but refused. After considerable delay, President Harrison had just laid the matter before Congress when a belated apology from Chile arrived, and war was fortunately averted. The charge that the United States had interfered in behalf of one of the parties in a civil strife created an unfavorable impression throughout Latin America and counteracted, to a considerable extent, the good effects of the Washington conference.

The Second International American Conference was held in the city of Mexico 1901-02. This conference arranged for all Latin-American States to become parties to the Hague Convention of 1899 for the pacific settlement of international disputes, and drafted a treaty for the compulsory arbitration of pecuniary claims, the first article of which was as follows:

The High Contracting Parties agree to submit to arbitration all claims for pecuniary loss or damage which may be presented by their respective citizens, and which cannot be amicably adjusted through diplomatic channels and when said claims are of sufficient importance to warrant the expenses of arbitration.