Tacna-Arica Dispute

Tacna-Arica Dispute, long-standing dispute between Peru and Chile over the provinces of Tacna and Arica, which before the War of the Pacific (1879-1893) had belonged to Peru. The Treaty of Ancón, ending the war, provided that the provinces remain in Chile's possession for ten years, after which a plebiscite would be held to decide their ultimate disposition. A compensation of some $10 million was to be paid to the nation losing the plebiscite. Ten years later Peru demanded execution of the treaty, but on the understanding that only Peruvian citizens be allowed to vote. No agreement could be reached in the matter, and the dispute lingered.

In 1922 representatives of both nations nominated the president of the United States to arbitrate the dispute. President Calvin Coolidge ruled in 1925 that a plebiscite be held, but the decision was abandoned because of riots in the provinces. In 1928 a treaty was finally arranged, and it was subsequently ratified in 1929. It gave the province of Tacna to Peru and the province of Arica to Chile, the latter agreeing to pay Peru $6 million and grant it control of a terminal at the city of Arica’s port. However, political tensions between the countries delayed the implementation of the agreement until 1999. Chile and Peru fulfilled all of the conditions of the treaty in 2000.