Ambassador Thompson to the Secretary of State.

No. 82.]

Sir: September 7 was the anniversary of Brazilian independence from Portugal.

The day was the occasion of the usual independence day celebration in Rio de Janeiro, and by arrangement between Argentina and Brazil was fixed as the day for the signing of an arbitration treaty between the two countries. An Argentine war fleet consisting of four vessels was sent to Rio, arriving there a couple of days before the 7th and will remain in the harbor until to-morrow morning, the 11th.

The occasion of the signing of the arbitration treaty and the presence of the Argentine war vessels in Rio harbor have, coupled with the usual independence day demonstration, been the cause of four days of banqueting and other kinds of party giving by the Brazilian foreign minister, the Argentine minister, and the admiral of the Argentine fleet. Everything has passed off most agreeably, and the occasion of the signing of the treaty seems to be most pleasing to the Brazilians, as well as to the Argentines here present. The treaty consists of an agreement to arbitrate all matters between Argentina and Brazil, excepting such as involve their respective constitutions or their liberty, and runs for a period of ten years with the condition that if not denounced at least six months before the expiration of the ten years it shall be considered renewed for a like period of time.

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I have, etc.,

D. E. Thompson.