Mr. Seeger to Mr. Hay.

Sir: Referring to my unnumbered dispatch to the Department of February 22 and to my note to the foreign office of January 20, a copy of which was transmitted with my unnumbered dispatch of January 20, I have the honor to transmit herewith a copy and translation of a note from Baron Rio Branco, received yesterday, in reference to the reestablishment of free transit on the Amazon.

I have, etc.,

Eugene Seeger,
Consul-General, in Charge of the Legation.
[Inclosure—Translation.]

I had the honor to receive the letter which Mr. Eugene Seeger, consul-general in charge of the legation of the United States of America, wrote me on January 20, in reference to the decision the Federal Government took on August 8, 1902, of suspending on the Amazon free transit to Bolivian import and export trade.

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It was in 1866 that the Brazilian Government opened the Amazon to the merchant ships of all friendly nations; but of the affluents of that river which have their source in Bolivian territory or pass through it the only one to which it extended this liberty,-and in fact the only one in Brazil which can serve Bolivian foreign commerce, was the Madeira from its confluence to the port of Santo Antonio. The Purus, and therefore its tributary, the Aquiry, or Acre, never were open to international navigation. Brazil has always maintained that when a river passes through the territory of two or more States the freedom of navigation or of transit through the country of the main river depends on a prior agreement thereto with the country of the tributary river, an agreement which in its nature implies reciprocity.

There has not been and there is not in force any treaty of commerce and navigation between Brazil and Bolivia, and free transit by Brazilian rivers for Bolivian foreign commerce was only a matter of tolerance on the part of Brazil. But since the Bolivian Government has thought to be able to transfer rights of a quasi-sovereign nature to a syndicate of foreigners of different nationalities, Americans and Europeans, a syndicate without international capacity, and which, by the way it is constituted and by the means it undertook to employ in Europe, clearly showed that it was conspiring against the so-called Monroe doctrine, and inasmuch as the same Government has besides this conferred upon that syndicate the power of disposing at will of the navigation of the river Acre and its affluents, Brazil concluded it was her duty to make reprisals, and for that reason, in the absence of conventional law between the two parties, suspended the tolerance which has existed for some years.

The situation which obligated the adoption of that expedient has now changed, and, therefore, since the Federal Government is desirous of attending as promptly as possible to the interests of commerce, it has by a decision of this date reestablished free transit on the Amazon for merchandise between Bolivia and the foreign countries; it has continued, however, to prohibit the importation to that country of war material by Brazilian rivers.

In thus informing Mr. Seeger that the resolution has now been taken, which I announced to him verbally was near, I thank him for the terms in which he asked for it in the name of the American Government, and the earnestness with which he referred to the strong bonds of tried friendship which unite our two countries. It will ever be the endeavor of Brazil to do her full share to strengthen and stimulate on every occasion the time-honored relations of mutual good will which bind her to her great and glorious sister of the north, and for this reason I take particular pleasure in announcing an act which will be agreeable to his Government.

I avail, etc.,

Rio Branco.