No. 7.
Mr. Osborn to Mr. Fish.

No. 96.]

Sir: I have the honor to inclose herewith a printed copy, taken from the Nacional, of the articles of the treaty signed by the Argentine, Brazilian, and Paraguayan envoys at their last conference, and referred to in my dispatch of February 3, and numbered 93.

The minister of foreign affairs informed me that the terms of the treaty as published in the Nacional are correct.

From what I can learn it seems that the terms of the treaty are very acceptable both to the government and people.

* * * * * * *

I am, &c.,

[Page 10]

Treaty of limits.

The Nacional, semi-official organ, publishes the terms of the treaty just signed by the Argentine, Brazilian, and Paraguayan envoys as follows:

All of Chaco, south of the Pilcomayo main channel, is hereby recognized as Argentine territory.
The Parana is the boundary between Paraguay and Argentine territory from the Tres Bocas upwards.
The island of Apipe belongs to the Argentines, that of Yacireta to Paraguay.
The island of Cerrito is declared Argentine.
That part of Chaco from Bahia Negra down to Rio Verde belongs to Paraguay.
The territory from Rio Verde southward to the Pilcomayo, including Concepcion and Villa Occidental, will be decided by President Grant as arbitrator.
The Brazilian and Argentine forces will evacuate Paraguay and Villa Occidental on or before 3d July, 1876.
The possession and civil jurisdiction of Villa Occidental will continue in the hands of the Argentine government, pending President Grant’s decision.
Whoever be decided owner of Villa Occidental must recognize the Argentine and Paraguayan rights of property there.
If it be adjudicated to the Argentines they must pay the Paraguayans for any buildings belonging to the latter, and vice versa.
Paraguay engages to pay war expenses and indemnities to the Argentines whenever and however she pays Brazil and Uruguay.
The Argentine and Paraguayan governments must send in their statements, plans, and documents to President Grant within twelve months.

The Nacional adds that a treaty of commerce and navigation on the most liberal terms has also been concluded and signed.