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the end of Bahia Negra," the distance of four kilometers being rigorously measured along the present boundary, so that this point shall be, more or less, at lat. 19° 45′ 36.6" and long. 14° 55′ 46.7" west of Rio de Janeiro (58° 04′ 12.7" west of Greenwich). From there it shall extend, in the direction marked out by the mixed commission of 1875, to lat. 19° 02′, and thence eastward along this parallel to Arroio de Conceição, following this to its mouth on the southern bank of the outlet of Lake Caceres, also called Tamengos River. It shall ascend the river to the meridian cutting Tamarindeiro Point, and thence northward along the meridian of Tamarindeiro to lat. 18° 54', continuing along this par allel to the west until it meets the present boundary.

2. From the point of intersection of parallel 18° 54′ with the straight line forming the present boundary it shall extend, in the same direction as to-day, to lat. 18° 14', and eastward along this parallel to where it meets the outlet of Lake Mandioré, along which it shall ascend, crossing the lake in a straight line to a point on the former boundary line equidistant from the two existing boundary monuments, and thence along this former line to the boundary monument of the northern shore.

3. From the northern monument in Lake Mandioré it shall continue in a straight line, in the same direction as to-day, to lat. 17° 49′, and along this parallel to the meridian of the extreme southeast of Lake Gahiba. It shall follow along that meridian to the lake, and shall cross the latter in a straight line to a point equidistant from the two existing boundary monuments on the old boundary line, and thence along this former or present boundary to the entrance of the Pedro Segundo Canal, also known recently as Pando River.

4. From the southern entrance of the Pedro Segundo Canal, or River Pando, to the confluence of the Beni and Mamoré, the boundary shall be the same as that determined upon in art. 2 of the treaty of March 27, 1867.

5. From the confluence of the Beni and Mamoré the boundary shall follow down the Madeira to the mouth of the Abunan, an affluent entering on the left, and shall ascend by the Abunan to lat. 10° 20′. From there it shall extend along parallel 10° 20′ eastward to the Rapirran, and shall ascend the latter to its principal source.

6. From the principal source of the Rapirran it shall extend along the parallel of latitude of the source until it encounters to the west the Inquiry River, ascending along the latter to its origin; whence it shall extend to the " Igarapé Bahia," by the most prominent landmarks or by a straight line, as it shall seem best to the commissioners of the two countries appointed to mark the boundary.

7. From the source of the "Igarapé Bahia" it shall continue down the latter to its confluence on the right bank with the Acre or Aquiry River, which it shall ascend to its source, if the latter is not in longitude farther west than 69° west of Greenwich.

(a) In the case mentioned, that is, if the source of the Acre is in longitude not so far west as that indicated, the boundary shall follow along the meridian of the source to parallel 11°, and thence westward along this parallel to the boundary with Peru.

(b) If the Acre River, as seems certain, crosses longitude 69° west of Greenwich and extends either to the north or south of said parallel 11°, following the latter more or less, the channel of the river shall form the dividing line to its source, along the meridian of which it shall continue to parallel 11°, and thence westward along the same parallel to the boundary with Peru; but if to the west of said longitude 69° the Acre flows entirely south of parallel 11°, the boundary shall extend from that river along longitude 69° to the point of intersection with the said parallel 11°, and thence along it to the boundary with Peru.

ARTICLE II.

The transference of territories resulting from the delimitation described in the preceding article includes all the rights inherent in them and the responsibility flowing from the obligation to maintain and respect the legal rights acquired by citizens and foreigners, according to the principles of the civil law.

The claims arising from administrative acts and events that have taken place in the territories exchanged shall be examined and judged by an arbitration tribunal composed of one representative of Brazil, another of Bolivia, and of one foreign minister accredited to the Brazilian Government. This third arbiter, president of the court, shall be chosen by the two high contracting parties immediately upon the exchange of ratifications of the present treaty. The

court shall perform its functions during one year in Rio de Janeiro, and shall commence its labors within the period of six months, counted from the day of the exchange of ratifications. Its mission shall be: 1, to accept or reject the claims; 2, to fix the amount of the indemnities; 3, to designate which of the two Governments is to pay them.

The payments may be made in bonds issued for the purpose, at par, to draw interest at per cent and sinking-fund charges of 3 per cent.

ARTICLE III.

Because of the fact that the areas exchanged by the two nations are not equal in extent, the United States of Brazil shall pay an indemnity of £2,000,000 (two million pounds sterling), which the Republic of Bolivia accepts with the design of applying it principally on the construction of railroads or other works tending to improve communications and develop commerce between the two countries.

The payment shall be made in two parts of £1,000,000 each, the first within the period of three months, counted from the exchange of ratifications of the present treaty, and the second on March 31, 1905.

ARTICLE IV.

A mixed commission named by the two Governments within the period of one year, counted from the exchange of ratifications, shall proceed to the demarkation of the boundary described in Art. I, commencing its labors within the six months following its nomination.

Any disagreement between the Brazilian and Bolivian commission which the two Governments may not succeed in settling shall be submitted to the arbitral decision of a member of the Royal Geographical Society of London, chosen by the president and members of the council of the same.

If the commissioners appointed by either of the high contracting parties to delineate the boundary fail to present themselves at the place and on the date agreed upon for the commencement of their labors, the commissioners of the other shall proceed of themselves to the marking, and the result of their operations shall be binding on both.

ARTICLE V.

The two high contracting parties shall conclude within the period of eight months a treaty of commerce and navigation based on the principle of the fullest liberty of land and river navigation for each of the nations; a right they shall both recognize in their dealings with each other perpetually, respecting fiscal and police regulations now established or that may in the future be established in their own territory. These regulations must be as favorable as possible to navigation and commerce, and they shall be made as uniform in the two countries as possible. It is, however, understood and declared that in this navigation is not included that from port to port of the same country, or internal river navigation, which shall continue in both countries subject to their respective laws.

ARTICLE VI.

In conformity with the stipulations of the preceding article and for the shipment in transit of articles of importation and exportation, Bolivia may maintain customs agents in the Brazilian custom-houses of Belém do Para, Manãos, and Corumbá, and in the other customs ports which Brazil may establish on the Madeira, and on the Mamoré, or at other points on the common boundary. Reciprocally, Brazil may maintain customs agents in the Boivian custom-house at Villa Bella or in any other customs post Bolivia may establish on the common border.

ARTICLE VII.

The United States of Brazil obligate themselves to construct in Brazilian territory, themselves, or by means of private enterprise, a railroad from the port of Santo Antonio, on the river Madeira, to Guajará-Mirim, on the Mamoré, with a branch, which, passing through Villa Murtinho or other near-by point (State of Matto-Grosso), shall extend to Villa Bella (Bolivia) at the confluence of the Beni and Mamoré. This railroad, which Brazil shall endeavor to conclude within the period of four years, both countries shall make use of, with the right to the same rates and privileges.

ARTICLE VIII.

The Republic of the United States of Brazil declares that it will canvass directly with the Republic of Peru the question of boundaries of the territory comprised between the source of the Javary and parallel 11°, attempting to arrive at an amicable settlement of the dispute, without responsibility for Bolivia in any case.

ARTICLE IX.

The disagreements which may arise between the two Governments with regard to the interpretation and execution of the present treaty shall be submitted to arbitration.

ARTICLE X.

This treaty, after approval by the legislative power of each of the two Republics, shall be ratified by the respective Governments and the ratifications exchanged in the city of Rio de Janeiro within the briefest period possible.

In faith whereof we, the plenipotentiaries above named, signed this treaty in two copies, one in the Portuguese and one in the Spanish language, affixing thereto our seals.

[L. S.]

[L. S.] [L. S.] [L. S.]

Done in the city of Petropolis this seventeenth day of November, in the year one thousand nine hundred and three.

RIO-BRANCO.

J. F. DE ASSIS BRAZIL.
FERNANDO E. GUACHALLA.
CLAUDIO PINILLA.

Mr. Dawson to Mr. Hay.

No. 121.]

AMERICAN LEGATION, Petropolis, February 15, 1904.

SIR: Referring to the subject of my No. 114 of January 23, the boundary treaty between Bolivia and Brazil, I have the honor to state that the Chamber of Deputies ratified it on January 25 by a vote of 118 to 13, and the Senate on February 12 by 35 to 9. The Bolivian Congress having already ratified the treaty the exchange of ratifications will promptly be made.

After ratifying the treaty the Chamber of Deputies passed a bill providing for the raising of the money necessary to carry out the obligations of the treaty and providing for the administration of the territory. This bill will doubtless shortly pass the Senate.

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I send herewith under separate cover two maps showing accurately the old and new boundaries between the two countries."

I have, etc.,

THOMAS C. DAWSON.

Mr. Dawson to Mr. Hay.

No. 130.]

AMERICAN LEGATION, Petropolis, March 18, 1904.

SIR Referring to the subject of my No. 121 of February 15, 1904, the boundary treaty between Brazil and Bolivia, I have to say that the formal ratifications thereof were exchanged here on the 10th instant.

a Not printed.

The bill spoken of in that dispatch for the organization of the ceded Acre territory into a national territory became a law.

I have, etc.,

THOMAS C. DAWSON.

MESSAGE OF THE PRESIDENT OF BRAZIL TO THE BRAZILIAN CONGRESS.

Mr. Thompson to Mr. Hay.

No. 144.]

AMERICAN LEGATION,
Petropolis, May 6, 1904.

SIR: I send inclosed herewith a copy of the second annual message of President Rodriguez Alves, read on May 3, at the opening of the second session of the fifth legislature. I also send full translation of certain sections of special interest to the United States.

On the whole the message is of an optimistic tone, especially with reference to the progress of the work of building a modern harbor and dock system at Rio; a part, with the construction of a wide central avenue in the city and the creation of a new National Department of Health, of the plan to make Rio a healthy city, and particularly, to free it from yellow fever, in which much progress is already evident.

The financial situation is dwelt on at length and reflects the generally improved conditions of recent years in the government's finances which since the time of the funding loan agreement in 1898 has apparently nearly paid its way, at the expense, however, of largely increased taxes and customs duties. A gradual recovery from the crisis of 1900 is also apparent in the showings of exports and imports, which, according to the estimates, both record considerable increases over the previous years. The increase in exports is particularly noticeable the regular annual depreciation in the value of the coffee crop at last has been overcome by the increase of the value of the rubber and cotton exports.

The Peruvian situation is dwelt on at length, this being the only serious foreign complication Brazil has on its hands. Nothing new is, however, said on this point.

I have, etc.,

D. E. THOMPSON.

[Inclosure. Translation.]

Extracts from second annual message of President Rodriguez Alves, read at the opening of the second session of the fifth legislature.

The people of the Isthmus of Panama constituted itself last year into an independent state under the name of Republic of Panama. This important event was communicated here by the provisional government then organized. I replied to this communication at the same time with Argentina, Chile, the United States and Mexico, the five republics thus recognizing the new republic, for whose prosperity I have the best wishes.

After the denunciation by the Government of France of the commercial modus vivendi we had with that country, the latter renewed it by agreeing to desist from increasing the duties upon coffee, in exchange for the application of our minimum tariff to French products,

To the United States of America, the country which you know is the largest importer of the principal article of Brazilian exportation, and moreover, receives it free of duty into its markets, I have conceded, to be effective within the current fiscal year and beginning April 20 last, the reduction of 20 per cent in import duties of certain articles of their production, availing myself thus of the authority you gave me by article 6 of law No. 1144, of December 30, 1903.

Mr. Joaquim Nabuco, minister on special mission in Rome, comissioned to defend our right in the arbitrament of the boundary question between Brazil and British Guiana, already presented his third and last memorial to his Majesty the King of Italy, on the same occasion in which the English embassador presented his. The discussion between the parties being thus terminated, we await, with the greatest confidence in the justice of our cause, the sentence of the august sovereign.

Through the initiative of the Argentine Government, which I accepted with the greatest satisfaction, the Governments of the Argentine, Uruguay, Paraguay, and Brazil will be represented in a sanitary congress which will take place in this city, and the opening of which is fixed for the 5th of June next. * ** The preparations in Brazil for the transmissal of the articles destined to the universal exposition at St. Louis, in the United States of America, have been completed. The articles have been sent and the Brazilian commissioners have proceeded thither.

In view of the quantity and quality of the objects sent from almost all the States and from the federal capital the conviction is justified that our country will be well represented, and to this end the State governments have efficiently contributed, as well as the commercial associations and industrial concerns.

Our pavilion is almost completed-it is among the first completed-and according to the opinion of reliable persons it will be particularly prominent among all the other nations at that great fair for its beauty.

PROVISIONAL AGREEMENT BETWEEN BRAZIL AND PERU TERMINATING BOUNDARY DISPUTE, AND CONVENTION FOR THE ARBITRATION OF ALTO JURUA AND ALTO PURUS CLAIMS.

Mr. Thompson to Mr. Hay.

No. 204.]

AMERICAN LEGATION,
Petropolis, July 23, 1904.

SIR: I inclose herewith copy of the provisional accord between Brazil and Peru, formulated as a means of settling in a friendly manner the boundary dispute between the two countries, and of a convention of arbitration entered into at the same time for the purpose of settling equitably and finally the claims of their respective citizens for losses and damages sustained by them in the regions of the upper Juruá and the upper Purús, together with translation of the same.

I have, etc.,

D. E. THOMPSON.

[Inclosure 1.-Translation.]

Protocol of a provisional agreement, concluded in Rio de Janeiro July 12th 1904, between the Governments of Brazil and Peru.

There met in conference on the 12th of July, 1904, in the Palace of Itamaraty, Rio de Janeiro, the minister of foreign affairs, Dr. José Maria da Silva Paranhos do Rio-Branco, and the minister plenipotentiary of the Republic of Peru, Dr. Don Hernán Velarde, duly authorized to conclude an agreement which would prevent any possible conflict between the Brazilians and the Peruvians in the regions of the alto Juruá and the alto Purús, and would permit the two Governments of Brazil and Peru to enter amicably into negotiations of an honorable and

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