Mr. Thompson to Mr. Hay.

No. 20.]

Sir: Inclosed herewith I send you a copy of the first annual message to Congress of President Rodrigues Alves, with a translation of certain portions, which will be of particular interest to the Department.

The part devoted to the discussion of the proposed public improvements in Rio de Janeiro has created the greatest satisfaction, as the [Page 34] vigorous language used and the steps already taken by the Government indicate a firm purpose on the part of the administration to initiate and carry through the approved plans for, first, a splendid wharf system; second, a modern sewerage system, and, third, the complete stamping out of yellow fever, of which there has been a great deal during the past year. With regard to the latter I may say in passing that the work accomplished in Cuba by our army of occupation is being frequently cited as an example to be followed and as proof that Rio de Janeiro, in the same latitude south as Habana is north, can be freed from the yearly reappearance of that disease.

In that part of the message devoted to foreign relations you will note that the United States is mentioned first in the list of those countries who sent war ships to the inauguration last November. The graceful words about Cuba may perhaps also be taken as a friendly remark for our Government. The discussion of the Acre question is clear and is perhaps the best presentation of the Brazilian point of view and contention that has yet appeared.

I have, etc.,

David E. Thompson.
[Inclosure.]

Translation of extracts from the President of Brazil’s annual message to Congress.

* * * * * * *

In previous documents I have alluded to the public service of making this capital sanitary, and each time I feel more convinced that in this act will be found the necessary element for the revival of the economic life of the country.

Such an undertaking undoubtedly involves doing a great many things difficult and costly of execution, but the benefits expected are of such a kind as to make the undertaking necessary.

The defects of the capital affect and disturb the whole national development. Its restoration in the opinion of everybody would be the beginning of new life, an incitement to development in the extensive area of a country which has lands for any crops, climates for all peoples, and fields for exploitation by all kinds of capitalists.

The general health conditions of the capital, besides demanding urgent material improvements, depend on a good water supply, regular sewage system, soil drainage, public cleanliness, and cleanliness of private houses.

It seems to me that this great work should, however, be initiated by carrying out the plans for the improvement of the part which will constitute the base of the system, and will tend not only toward bringing about the desirable end mentioned, but also and evidently to the improvement of the conditions of labor, commerce, and, what must not be forgotten, the increase of our revenues.

Our duty, which the Government is going to perform, is to initiate this great public service and never abandon it, even though it will cost us great sacrifices.

* * * * * * *

foreign relations.

I take pleasure in and note with great pride the act of courtesy of the United States, England, Portugal, France, and Argentine, in sending war ships of their navies to bring us good wishes on the 15th of November last.

Our foreign affairs have involved us in very delicate situations for nearly a year, as a result of the happenings in the Acre, but happily Brazil continues to enjoy the benefits of peace, and I have the great happiness of being able to say that our relations with most of the powers are very friendly. Among these is now included the Cuban Republic, recognized by us, and for whose prosperity I have the sincerest good wishes.

Our various boundary questions, so carefully studied by passed administrations, are being resolved amicably and honorably. Shortly after the end of our dispute with France over the Guiana territory the treaty of London of November 6, 1901, by which the litigation of our frontiers with British Guiana was submitted to the arbitration [Page 35] of His Majesty the King of Italy, went into execution. Mr. Joaquim Nabuco, accredited as envoy extraordinary and minister plenipotentiary, on special mission to the august arbiter, already has had the honor of delivering, in defense of our cause, the first of the three memorials authorized by the compromise.

The demarcation of our boundaries with the Argentine Republic is almost concluded, in accordance with the terms of the agreement of February 5, 1895, and of the treaty of October 6, 1898.

Our former relations of such cordial friendship with Bolivia have suffered a not insignificant strain since the time when the Government of that sister Republic, unable to maintain its authority in the Acre region, inhabited exclusively, as you know, by Brazilians who, many years previously, had established themselves there in good faith, saw fit to deliver it over to a foreign syndicate upon whom it conferred powers almost sovereign. That concession, as dangerous for the neighboring nations as for Bolivia itself, encountered general disapproval in South America. As the most immediately interested, Brazil, already in the time of my illustrious predecessor, protested against the contract to which I refer, and entered upon the policy of reprisals, prohibiting the free transit by the Amazon of merchandise between Bolivia and abroad.

Neither that protest nor the counsels of friendship produced at that time the desired effect in La Paz, and, far from rescinding the contract or making the hoped-for modifications therein, the Bolivian Government concluded an especial arrangement for the purpose of hurrying the entrance of the syndicate into the possession of the territory.

When I assumed the government that was the situation, and in addition the inhabitants of the Acre, who had again proclaimed their independence, were masters of the whole country, excepting Puerto Acre, of which they did not get possession until the end of January.

Although since January negotiations have been initiated by us for the purpose of removing amicably the cause of the disorders and complications which have had their seat of action in the Acre ever since the time when for the first time the Bolivian authorities penetrated thither, in 1899, yet the Government of La Paz has nevertheless thought proper that its President and his minister of war should march against that territory at the head of armed forces with the end in view of crushing its inhabitants and then establishing the agents of the syndicate.

I thereupon resolved to intervene to protect our fellow-citizens and prevent further and unnecessary bloodshed, whereupon we could, with the proper intent, arrive in a short time at a definite arrangement, honorable and satisfactory for both parties. From the 18th of January on, instructions were sent to our legation in La Paz to the effect that in spite of the very broad interpretation which, as a favor to Bolivia, the Brazilian Government had given through so many years to article 2 of the treaty of 1867, it would now defend as its boundary the parallel of 10° 20′ south, which is the dividing line indicated by both the letter and the spirit of that pact. After the departure of the expeditions against the Acreans our legation was instructed to repeat that declaration and to inform the Bolivian Government that Brazil was going to take military occupation of a part of the contested territory until the settlement of the dispute by diplomatic channels. Upon the Bolivian Government agreeing to this we promptly reestablished freedom of transit for its foreign commerce by Brazilian waters.

Shortly after this the syndicate, by reason of the indemnity which we paid it, renounced the concession which had been made it, eliminating thus this disturbing element.

The negotiations for the modus vivendi necessitated by the new situation proceeded and there resulted the preliminary agreement signed at La Paz on March 21. In accordance with its terms the troops of General Olympie da Silveira already occupy the contested territory to the east of the Purus between the so-called Cunha Gomes line and the parallel of 10° 20′, and a Brazilian detachment of troops is already supposed to have passed to the south of that parallel to take up their position between the armed Acreans and the Bolivian forces. These latter, commanded by General Pando, are supposed to have stopped at the river Orton, sending their advanced posts as far as the Abunan. If in the period of four months, counting from March 21, the two Governments can not arrive at a direct and definite agreement, the said Brazilian detachment of troops will return to the north of that parallel and the negotiations will commence for a treaty of arbitration.

It is much to be regretted that the discussion of the definite agreement has been interrupted when it had scarcely begun, in January, and that the period of four months from March 21 will, as a matter of fact, be reduced to two, since the Bolivian minister on special mission can not be expected to arrive here until the end of this month.

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I sincerely wish and hope that the two Republics may be able to arrive at an understanding, settling, as soon as possible, in the most honorable manner these irritating and too much prolonged questions. Brazil does not desire an agreement in opposition to the interests of Bolivia, and holds in the highest appreciation her friendship.

To the Peruvian Government we have announced, very willingly, since January that we will examine, with attention, the claims which in due time they may be pleased to make upon the subject of the territories now in dispute between Brazil and Bolivia.

Near the mouth of the Amonea, in Alte Jurua, conflicts have unhappily taken place between the Brazilians there for a long period of time established and a detachment of Peruvian troops whom the prefect of Iquitos had sent there in October. With the imperfections of the maps in existence it is, however, imposssble to say whether that point is within the Brazilian boundary or in territory indisputably Peruvian, as our neighbors allege. I am convinced that the questions relative to these incidents on the frontier will be solved by the two Governments in the most amicable spirit.