No. 43.
Mr. Markbreit to Mr. Fish.

No. 177.]

Sir: By a decree issued January 31, 1872, the government of the Argentine Republic has virtually assumed jurisdiction over the entire territory constituting “El Gran Chaco.” It appoints General G. Vedia as governor of the same, with headquarters at Ville Occidental. It is well known that the “Chaco” has been for many years in dispute between Bolivia, Paraguay, and the Argentine Republic. In the treaty of 1865 between Brazil and her allies in the Paraguay war it was expressly stipulated that the territorial rights to the Chaco should form a subject for future discussion and treaty between Bolivia, Paraguay, and the Argentine Republic. Bolivia, as I had the honor to report to the Department in my dispatch No. 170, had recently appointed Senor Reyes Cardona as her minister to Brazil and the states on the Plate, with instructions to treat upon this and other questions.

I am now informed by Dr. Corral that the Argentine Republic, without waiting for the arrival of Bolivian representative, (of whose appointment it had been notified,) has sent an armed force to a plnce called Carapari—claimed by Bolivia as Bolivian territory—where a slight encounter took place between Bolivian and Argentine troops, resulting in the withdrawal of the former and the death of one of their number.

When this news reached La Paz the government at once protested against this violation of Bolivian territory, at the same time issuing a decree calling out for service on the frontier four thousand militia, and appointing General Avila as general-in-chief. In the mean time Senor Cardona has been directed to depart at once for his diplomatic posts, and the matter, for the present, rests here.

It must be admitted that Bolivia has not been fortunate with her neighbors in questions referring to her boundaries. When, in the year 1825, the separation between “Alto” and “Bajo Peru” took place, and Bolivia became an independent nation, she was left with but one miserable port on the Pacific, (Cobija,) the very important port of Arica and the inland town of Tacna, both so very essential to Bolivia, remaining in possession of Peru.

Again, in the treaty of 1867 with Brazil, although she obtained the inestimable advantage of an outlet to the Atlantic, via the Amazon, yet it can hardly be doubted that Bolivia sustained material territorial loss.

In the treaty of “limites” with Chili in 1866 she was even more unfortunate, for she lost territory without getting anything in return; and now I fear she is about to have serious complications with one of the two only neighboring countries (the other is Paraguay) with which she has no boundary treaty.

I am, &c,

L. MARKBREIT.