Consistent with the programme adopted by my Government to settle international differences by the peaceful means of diplomacy, whenever the negotiations consult the mutual interests of the high parties that meet for a solution of that nature, every effort has been made to arrive at an agreement with the neighboring Republic of Chile. Causes, independent of the will of our office of chancellor, have deferred this solution, which the convenience of both countries makes necessary. I earnestly desire that the preeminent labor of the Government that has begun may be the prudent and successful settlement of this business in harmony with the aspirations of the Bolivian people under the peculiar idea of the present conditions of the nation. Mr. Ignacio Calderon, accredited envoy extraordinary and minister plenipotentiary of Bolivia to the Government of the United States of North America, has been officially received by the President, Mr. Roosevelt, on May 27 last. Mr. Calderon is, besides, charged with promoting the formation of a company of builders of railways, a task that he has undertaken with activity and good results, transmitting the reports that will be submitted to you by the office of the division. The Government recognized under date of April 20 last the independence of the new Republic of Panama, Mr. Ignacio Calderon being charged with the personal presentation of this document on his passage through the Isthmus. The opening of the canal is a thing that must advantageously influence the commercial currents of the Pacific. Pending the decision of the President of the Argentine Republic, the arbitration juris stipulated with the Government of Peru, and the acceptance of the arbiter being officially declared, the representatives of each one of the countries that are to be present at the arbitral judgment should be at once established, presenting their allegations of defense within the limits of a year. The Government has a sufficient store of documents for the defense of the rights of Bolivia in the archives of the office of foreign relations, and some other means having been adopted for the acquisition of other elements of defense which are able to reenforce our perfect right over the territories comprised in the court of Charcas. Conformable to the desires of the honorable House of Deputies, a project of a commercial treaty has been subscribed with Mr. Joseph Belin, chargé d'affaires of France, which yet does not have the approval of the high parties contracting, to be submitted to your consideration. I am able to announce to you with the greatest satisfaction that our diplomatic relations with the European powers are every day more extended, the legations of Germany, Austria, Spain, England, and Italy existing at present, accredited to the Government of the nation, although without residence in the country. No. 109.] BRAZIL. MISUSE OF THE FLAG OF THE UNITED STATES. Mr. Thompson to Mr. Hay. AMERICAN LEGATION, Petropolis, January 4, 1904. SIR: I have to report that upon receipt of a letter from Consul Furniss, at Bahia, under date of May 16, 1903 (copy inclosed), informing me of the use by a Brazilian line of sailing vessels of a house flag very much resembling one of the forms of our national ensign, I brought the matter to the attention of the foreign office in an unofficial note of May 25, 1903 (copy inclosed), informing Mr. Furniss of the steps taken in a letter dated May 26, 1903 (copy inclosed). Receiving no answer from the foreign office, I again wrote to Baron Rio Branco under date of September 9, 1903 (copy of letter inclosed), receiving an acknowledgment of the receipt of this note and of my previous one, under date of September 30, 1903 (copy and translation inclosed). Although I have received no further communication from the foreign office, I learn through the official paper that the minister of justice has now taken the necessary measures to prevent the further use of the flag resembling our national ensign by the line of vessels referred to. I have, etc., D. E. THOMPSON. [Inclosure 1.] Mr. Furniss to Mr. Thompson. AMERICAN CONSULATE, DEAR SIR: Under date of July 18, 1901, I wrote to Minister Bryan relative to a line of Brazilian sailing vessels which were using as their house flag a flag so closely resembling our national ensign that it can not be differentiated at a short distance, and asked his assistance to have its use prevented. In August of the same year, when Colonel Bryan was passing through this port on the U. S. S. Atlanta, he informed me that the matter had been called to the attention of the Brazilian Government, and that he had been assured that its use would be prohibited. The boats flying the flag are the property of the Bahia-Pelotas firm of Rosa, Carvalho & Co., and are in the carne secca" trade between the ports mentioned. At present there are three of these vessels in port, and a few days ago my attention was called to the fact that they were flying the objectionable flag at the mainmast. The flag is an exact facsimile of ours, with the exception that the stars in the blue field are arranged in a circle, in the center of which appear the letters "R. C." arranged as a monogram. The arrangement of the stars in a circle is permitted by our Government when 13 stars are used, and that, coupled with the fact that the monogram is so small as to be either indistinguishable or not noticed by one even at a short distance, makes its continued use by a Brazilian vessel very undesirable. This matter is called to your attention that you may give it such action as the matter necessitates. Mr. MINISTER: I herewith inclose you a sketch of the house flag used by the Brazilian firm of Rosa, Carvalho & Co., of Bahia and Pelotas, and regularly displayed in their ships which are engaged in the coastwise trade, and are registered at Pelotas. You will observe that this flag is substantially identical with the flag of my country, having 13 stripes alternately red and white, and a blue field in which stars are disposed in a circle in one of the forms authorized by our statutes and frequently used. The striking resemblance will appear by comparing the lithograph copy of our national ensign which I inclose with the sketch of the house flag of Rosa, Carvalho & Co. Our consular officers in Brazil have called my attention to the use of this ensign, and I believe you will agree with me that confusion may arise from the similarity of the two flags, and that Brazilian port officials as well as our consular officers might well mistake a Brazilian ship for an American or an American for a Brazilian. I do not know whether your Government has adopted any regulations in regard to the use of a national ensign as a house flag of a private firm, but I venture to call your attention for such action by the proper officials as may seem to you and them proper. D. E. THOMPSON. [Inclosure 3.] Mr. Thompson to Mr. Furniss. AMERICAN LEGATION, DEAR SIR: I have received your letter of May 16, 1903, reporting that the Brazilian shipowning firm, Rosa, Carvelho & Co., of Pelotas and Bahia, are using as a house flag on their ships an ensign which is practically identical with the flag of the United States. Your letter on the same subject of July 18, 1901. to my predecessor, Mr. Bryan, was answered by him on August 10, 1901. He said to you: "I have called the attention of the minister of foreign affairs to the matter and he has suggested such communication with the house responsible therefor as is likely to prevent a recurrence of the abuse in the future." It seems probable that Mr. Bryan meant that you should communicate with the house. There is no correspondence here indicating that he or the Brazilian minister of foreign affairs have taken any such action. I infer from your letter that you have not made a direct protest to Rosa, Carvelho & Co. since receiving Mr. Bryan's letter. If I am wrong, please advise me. I think a request to Rosa, Carvelho & Co. to discontinue the use of the United States ensign as a house flag on Brazilian ships should properly come from the Brazilian authorities. The vessels are directly under their control and not under ours. It seems to me the Brazilian Government would disapprove of Brazilian ships carrying a flag which makes them appear foreign. I have therefore written the minister of foreign affairs, calling his attention to the matter for such action by the proper authorities as he may deem proper. I am, sir, etc., D. E. THOMPSON. [Inclosure 4.] Mr. Thompson to Dr. Rio Branco. AMERICAN LEGATION, Petropolis, September 9, 1904. Mr. MINISTER: On May 25 I had the honor of addressing you a note on the subject of the use, by a line of Brazilian sailing vessels plying between Bahia and Pelotas, of a house flag very much resembling the national ensign of the United States, to which we have as yet received no answer. I would be pleased if you would be so good as to tell me the conclusion, when it has been reached, of the proper authorities. I avail, etc., [Inclosure 5.-Translation.] D. E. THOMPSON. Doctor Rio Branco to Mr. Thompson. MINISTRY OF FOREIGN AFFAIRS, I have the honor to acknowledge receipt of your excellency's note of the 9th instant, asking for my attention to your note of May 25 last, on the use by a line of Brazilian merchant vessels plying between Bahia and Pelotas of a flag much resembling the national ensign of the United States. In reply I have to say to your excellency that I have brought your note to the knowledge of my colleague of the navy department, whose reply I am awaiting in order to, in due time, transmit it to you, to whom I have the pleasure of reiterating the protests of my high consideration. Mr. Dawson to Mr. Hay. RIO BRANCO. No. 117.] AMERICAN LEGATION, Petropolis, February 9, 1904. SIR: Referring to the subject of the use by a line of Brazilian sailing vessels of a flag resembling one form of our national ensign, I send inclosed herewith copy and translation of the official note just received confirmatory of the fact reported in Mr. Thompson's No. 109, of January 4, as to the discontinuance of this abuse by order of the authorities. I have, etc., THOMAS C. DAWSON. [Inclosure.-Translation.] MINISTRY OF FOREIGN AFFAIRS, Rio de Janeiro, January 30, 1904. Supplementing my note of September 30 to Mr. David E. Thompson. I now have the honor to inform you that, according to the declaration of my colleague of the navy, the Brazilian firm of Rosa, Carvalho & Co., of Pelotas, has already ordered the flag used on its ships to be substituted, complying thus with the request contained in the note from your legation of May 25 last. I avail, etc., RIO BRANCO. TREATY WITH BOLIVIA TERMINATING THE DISPUTE OVER THE ACRE TERRITORY. Mr. Dawson to Mr. Hay. No. 114.] AMERICAN LEGATION, Petropolis, January 23, 1904. SIR: I herewith transmit a copy and translation of the text of the boundary treaty between this country and Bolivia, recently submitted to the Brazilian Congress for ratification and only published on January 9. Opposition to ratification has largely ceased since the exact terms of the treaty have been made public, and the advantages accruing to Brazil demonstrated by Baron Rio Branco's exposition. A large majority in the Chamber of Deputies is assured for ratification and this is expected to be given within a few days. The treaty will then go to the Senate, where 38 of the 63 votes are, so I am verbally informed, pledged in favor of ratification. A simple majority is sufficient. I have, etc., THOMAS C. DAWSON. [Inclosure. Translation.] Treaty between Brazil and Bolivia. The Republic of the United States of Brazil and the Republic of Bolivia, animated by the desire of consolidating forever their traditional friendship, of removing the causes for possible discord, and wishing at the same time to facilitate the development of their commercial and neighborly relations, have agreed to celebrate a treaty for exchange of territories and other compensations in conformity with the stipulations of art. 5 of the treaty of friendship, boundaries, navigation, and commerce of March 27, 1867. And for this purpose have named plenipotentaries, to wit: The President of the Republic of the United States of Brazil: Messrs. José Maria da Silva Paranhos do Rio Branco, minister of foreign affairs, and Joaquim Francisco de Assis Brazil, envoy extraordinary and minister plenipotentiary in the United States of America; and The President of the Republic of Bolivia: Messrs. Fernando E. Guachalla, envoy extraordinary and minister plenipotentiary on special mission to Brazil and Senator of the Republic, and Claudio Pinilla, envoy extraordinary and minister plenipotentiary in Brazil, nominated minister of foreign affairs of Bolivia; Who, after an exchange of their full powers, which were found to be in good and due form, have agreed on the following articles: ARTICLE I. The boundary between the Republic of the United States of Brazil and the Republic of Bolivia shall be established as follows: 1. Starting from lat. 20° 08′ 35′′ south, opposite the outlet of Bahia Negra into the Paraguay River, it shall ascend this river to a point on the right bank at a distance of 9 kilometers, measured in a straight line, from the port at Coimbra ; that is, approximately at lat. 19° 58′ 05′′ and long. 14° 39′ 14′′ west of the observatory at Rio de Janeiro (57° 47′ 40′′ west of Greenwich), in accordance with the map of the boundary drawn by the mixed boundary commission of 1875 and it shall continue from this point on the right bank of the Paraguay by a geodesic line which shall extend to another point four kilometers distant, in the true direction of 27° 01′ 22′′, northeast, from the so-called "boundary monuments at |