No. 22.
Mr. Frelinghuysen to Mr. Osborn.
Washington, July 26, 1882.
Sir: I have to acknowledge the receipt of your dispatch No. 37, of the 19th ultimo, relating to questions pending between Brazil and Uruguay.
You state that it is claimed by Brazil that a number of its citizens were impressed in 1880 into the military service of the Republic of Uruguay, and that the government of the former country is not satisfied with the inquiry made and action taken in regard to the matter, by the government of that republic; and you also state that, as Uruguay is in debt to Brazil, it may elect to cancel the obligation by a cession of territory to Brazil, and that the day may come when that republic will make such a proposal, in view of which possibility you apprehend it to be a question of no slight moment how far the President of the United States ought to acquiesce in a voluntary transfer, by an American republic, of its domain to a monarchical power. You close your dispatch by saying that, although the occasion may not arise for the consideration of this question, still you will not be surprised if the contrary proves to be true.
In reply, I have to state that it is to be hoped that the contingency you fear may not arise. While the United States wish not to encourage any nation in making default in the payment of its debts, this government would be reluctant to see a republic which has a large bonded debt so hand over its territory to a monarchy that the government of the same would cease to be republican.
I am, &c.,