Treaty of Lima
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The Treaty of Lima solved the dispute between Peru and Chile regarding the status of the chilean administered territories of Tacna and Arica. According to the Treaty, the Tacna-Arica Territory was divided between both countries; Tacna being awarded to Peru and with Chile retaining sovereignty over Arica. Chile also agreed to pay up to 6 millions dollars in compensation to Peru.
The Treaty was signed on June 3, 1929 in the City of Lima by then Peruvian Representative José Rada y Gamio and Chilean Representaty Emiliano Figueroa Larrain.
[edit] Peru and Chile's recent Maritime dispute
On January 26th, 2007, Peru’s government issued a protest against Chile’s demarcation of the coastal frontier the two countries share. According to the Peruvian Foreign Ministry, the Chilean legislatures have endorsed a plan regarding the Arica and Parinacota region which does not comply with the current, established territorial demarcation. Moreover, they allege that the proposed Chilean law includes an assertion of sovereignty over 19,000 sq. meters of land in Peru's Department of Tacna.
For its part, the Chilean government has asserted that the region in dispute is not a coastal site named Concordia, but instead refers to boundary stone No. 1, which is located to the northeast and 200 meters inland. [1]
A possible border dispute was averted when the Chilean Constitutional Court ruled on January 26th, 2007 unconstitutional legislation that Peru said could be seen as a move by Chile to encroach on its maritime territorial sovereignty. While agreeing with the court's ruling, the Chilean government reiterated its stance that the maritime borders between the two nations were not in question and have been formally by the international community. [1]
It has been reported that following the Chilean judicial ruling in Lima’s favor, the Peruvian government has stated that it might turn to the international court at The Hague to solve the dispute.[2]