17 DECEMBER 1881, Page 3

President Arthur directed Mr. Blaine, before his retirement, to explain

to Chili and Peru that he did not intend to use force to compel them to come to terms. Accordingly, on Novem- ber 22nd, Mr. Blaine addressed to Mr. Hurlbut, the American Minister in Chili, a despatch, severely censuring him for having gone too far. "While the United States would unquestionably regard with disfavour the imperious annexation of Peruvian territory as a right of conquest," they " could not refuse to recognise that such an annexation might become a necessary condition, in a final treaty of peace." The United States " did not recognise S. Calderon because of his resolve never to cede Peruvian territory." The United States only " desire to restore to the suffering people of Peru . the benefits of a well-ordered government," and the American Foreign Office, therefore, while not dismissing Mr. Hurlbut, supersedes him by a special mission. It is believed that this action of the President has been greatly promoted by the annoyance expressed throughout the Union at the contents of Mr. Blaine's first despatch. The universal feeling appears to be that the Union has no need to go in search of adventures, and should keep out of South- American squabbles.