File No. 4878/10.

Minister Sorsby to the Secretary of State.

[Extract.]
No. 311.]

Sir: I have the honor to transmit herewith a legalized copy, with translation, of an agreement arranged at Buenos Aires, Argentine on January 12 last, between representatives of Bolivia, Paraguay, and Argentine for a final settlement of the long-standing Bolivia-Paraguay boundary and territorial dispute.

In this connection I have also the honor to report that Dr. Juan M. Saracho, acting minister for foreign affairs, and the actual minister of justice and public instruction, willingly complied with my request for a copy of the agreement for transmission to the department, and later requested that I transmit in conjunction therewith a map showing the territory in dispute; the several proposed boundary lines as embodied in three previous protocols; Puerto Pacheco, situated in the disputed territory, and for the cession of which Bolivia, for reasons of commerce set forth in the accompanying memorandum, seems to be disposed to concede more of the disputed territory than she ever has before; Puerto Corumba, a Brazilian port, and which, in the present unsettled state of the Bolivian boundary question, controls the river transportation for that particular region.

I have, etc.,

William B. Sorsby.
[Inclosure 1—Translation.]

Drs. Claudio Pinilla, minister of foreign relations for Bolivia, and Adolfo Soler, minister of the treasury for Paraguay, duly authorized by their respective Governments, having met in the city of Buenos Aires in honor of the friendly mediation of the Government of the Republic of Argentine, for the purpose of discussing to a conciliatory and friendly solution respecting the question of the boundary dispute existing between the respective countries, after having studied the several propositions presented by the high parties, litigants, and by the minister of foreign affairs for the Argentine Republic, Dr. Estanislao S. Zeballos, have agreed to accept the following solution proposed by the latter in the conference of to-day.

Article I.

The high contracting parties agree to submit the question pending to the decision of His Excellency the honorable President of the Argentine Republic.

Article II.

The zone submitted to said arbitration is understood to be that between parallel 20° 30’ and the line which they sustain in their allegations north of the Paraguay, in the interior of the territory, between meridians 61° 30’ and 62° of Greenwich.

Article III.

Both ministers will ratify this convention within four months from its date, and in consequence their plenipotentiaries in Asuncion, Doctors Cano and Dominguez, shall subscribe to this agreement of limited arbitration, which shall necessarily be submitted to the respective Congresses for approval at the first ordinary sessions.

[Page 88]

Article IV.

The plenipotentiaries of the high contracting parties are to be opportunely designated for the purpose of presenting to the President of the Argentine Republic, within the period of thirty days from the congressional approval, an exposition of the titles and evidence in support of their rights.

Article V.

The President of the Argentine Republic will decide the controversy with respect to the rights of the high contracting parties, in conformity with the titles and evidence submitted.

Article VI.

In case that one of the high contracting parties should fail to obtain the ratification referred in Article III, the respective plenipotentiaries at Asuncion will negotiate an agreement fixing the zone to be submitted to the arbitration agreed upon, and in the meanwhile the statu quo referred to in the following article is understood shall be continued.

Article VII.

Pending the process of complying with this convention, the high contracting parties compromise from this moment not to change nor to advance the position of their possessions as they to-day exist.

In no case can this statu quo be suspended before the expiration of one year from the date fixed by Article III.

The statu quo shall be loyally observed under the guarantee of the Argentine Government.

The present agreement to be signed in three identical copies.


(Signed)
Clatjdio Pinilla.

(Signed)
A. R. Soler.

A true copy.

(Signed)
José Salinas,
First Secretary of Foreign Affairs.

[Inclosure 2—Translation.]

[Extract.]

Bolivia owns the territory embraced in the whole of the extension which during colonial period pertained to the Court of Charcas. In virtue of which and conformable to the Uti Possidetis of 1810, she alleges the right to all of the Chaco Boreal between the rivers Paraguay and Pilcomayo and the province of Chiquitos, of the Department of Santa Cruz. On the other hand, Paraguay also alleges ownership to the region of, the Chaco, founding her claim upon several ancient possessions, such as Fortress Borbon and others.

The litigation of the frontiers between both countries is of long duration, and has given rise to three treaties known by the names of the signers, as follows: 1879, Quijarro-Decoud; 1887, Tamayo-Aceval; and 1895, Ichazo-Benites. None of these treaties were accepted by the Paraguayan Congress, and the efforts of Bolivia for the solution of this matter always encountered the denial of the congress of that country, despite the fact that the Bolivian Government and congress approved the first two.

Senor Claudio Pinilla, passing through Buenos Aires, celebrated the accompanying agreement, which has been approved by the Government of Bolivia and will also certainly be approved by that of Paraguay. As an offering to continental peace and in preservation of her commercial and customs liberty Bolivia finds it necessary to accept a new (another) segregation of her territory. In effect, the oriental region of Bolivia, embracing an extensive territory rich in mines and of an extraordinary fertility, must send its import and export commerce to the Atlantic via the river Paraguay and the Plate, but encounters the inconvenience of having to pass through Brazilian territory, where the merchandise [Page 89] destined for Bolivia, and those exported by Bolivia, by this route, is made to suffer innumerable charges, such as obliging boats destined for Puerto Suarez (Bolivia) to discharge at Puerto de Corumba (Brazil) and to pay enormously high wharfage and fines; and finally, the packages are opened with great prejudice to Bolivian merchants. But even yet the onerous charges to which these small vessels making the service between Corumba and Puerto Suarez are subjected are such that in various instances the transport of navigation cost as much as the freight, on the same shipment, from Montevideo to Corumba, separated from twelve to fourteen days of navigation.

The Pinilla-Soler agreement, therefore, satisfies the practical needs of Bolivia; giving it a port of its own upon the river Paraguay to the north of parallel 20° 30’, where Puerto Pacheco, in the highlands of Chamacocos, is situated. This port, which will be the point of the beginning of the railway to Santa Cruz de la Sierra, possesses great interest not alone with respect to the commercial independence of Bolivia, but also for the American company building the railways of the interior; which system must, in the course of its development, connect with that of Santa Cruz in order to have an additional line for commercial interchange.