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follows this ridge of heights and comes to that called the ridge of Haedo, as far as the point where the branch of the Quareim, called the Invernada River, in the map of the Viscount of San Leopold, but which is without a name in the map of Colonel Reyes, commences, and descends by the said branch until it enters the Uruguay; the island or islands that are found in the embouchure of the said River Quareim into the Uruguay, belonging to Brazil.

IV. It being understood that Brazil is in exclusive possession of the navigation of the Lake of Merim and the River Yaguaron, and is to remain so according to the basis adopted of the uti possidetis, admitted with the object of arriving at a definitive and amicable resolution, and recognizing, moreover, the desirability of her having ports into which the Brazilian vessels that navigate that lake may enter, and likewise the Oriental vessels that navigate the rivers in which those ports may be; the Oriental Republic of the Uruguay agrees to cede to Brazil, in complete sovereignty, for the above purpose, half-a-league of land on one of the margins of the embouchure of the Sebollati that may be selected by the Commissioner of the Imperial Government, and another half-league on one of the margins of the Tacuary selected in the same manner; the Imperial Government being at liberty to erect on these lands the works and fortifications it may judge necessary.

V. Immediately after the ratification of the present Treaty, the 2 High Contracting Parties will each appoint a Commissioner, in order that by common consent they may proceed as soon as possible to the demarcation of the boundary-line at the points where it may be necessary, in conformity with the foregoing stipulations.

VI. The exchange of the ratifications of the present Treaty shall take place at Monte Video within the term of 30 days, reckoning from its date, or sooner if possible.

In testimony whereof we, the Undersigned, Plenipotentiaries of His Majesty the Emperor of Brazil and of the President of the Oriental Republic of the Uruguay, in virtue of our full powers, have signed this present Treaty with our hand, and caused to be put to it the seal of our arms.

Done in the city of Rio de Janeiro, the 12th day of the month of October, in the year of our Lord Jesus Christ 1851.

(L.S.) HONORIO HERMETO CARNEIRO LEAO. (L.S.) ANTONIO PAULINO LIMPO DE ABREU. (L.S.) ANDRES LAMAS.

And having before us the said Treaty, the tenor of which is the foregoing, and all that is therein contained having been well seen, considered, and examined by us, we approve, ratify, and confirm

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it as well in the whole as in each one of its Articles and stipulations; and by the present we declare it to be firm and valid for ever, promising on our Imperial faith and word, inviolably to observe and fulfil the same, and to cause it to be observed and fulfilled by all possible means.

In testimony and confirmation of the foregoing, we have caused the present letter to be issued, signed by us and sealed with the great seal of the arms of the Empire, and countersigned by our Minister and Secretary of State, whose name is affixed below.

Given at the palace of Rio de Janeiro, on the 13th day of October, in the year of our Lord Jesus Christ 1851.

PAULINO JOSE SOARES DE Souza,

(L.S.) PEDRO, Emperor.

CONVENTION for regulating the pecuniary Assistance to be afforded by Brazil to the Oriental Republic of the Uruguay. -Signed at Rio de Janeiro, October 12, 1851.

(Translation.)

WE, the Constitutional Emperor and Perpetual Defender of Brazil, &c., make known to all who shall see the present letter of confirmation, approbation, and ratification, that on the 12th day of October, 1851, there was signed and concluded at this Court of Rio de Janeiro, between us and the President of the Oriental Republic of the Uruguay, by the respective Plenipotentiaries furnished with the necessary full powers, a Convention to regulate the pecuniary succours to be afforded on the part of Brazil to the Government of the Republic, the tenor whereof is as follows:

In the name of the Most Holy and Indivisible Trinity.

His Majesty the Emperor of Brazil, and the President of the Oriental Republic of the Uruguay, having recognized that the actual state of deficiency in pecuniary resources to which the said Republic is reduced, arising from the prolonged and calamitous struggle which it has sustained, is the principal and most serious obstacle that prevents this State being pacified and organized in a solid and suitable manner, and its independence maintained and preserved; and being desirous to avoid the perpetuation of civil war, and the renewal of the anarchy so atal to both the Republic and the Empire to the loss of the fruit of the sacrifices hitherto made, and despite the policy adopted in order to obtain lasting peace and tranquillity; they have agreed to define and adjust the terms on which pecuniary succours are to be afforded to the said Oriental Republic of Uruguay, and the guarantees that the latter is to furnish to Brazil; for which

purpose they have appointed as their Plenipotentiaries, that is to say:

His Excellency Paulino Jose Soares de Souza, of the Privy Council, Senator of the Empire, Grand Cross of the Royal Order of St. Januarius, Officer of the Imperial Order of the Southern Cross, Chief Magistrate of the Municipality of Rio Janeiro, Minister and Secretary of State for Foreign Affairs, on the part of His Majesty the Emperor of Brazil;

And Don Andres Lamas, President of the Historico-Geographical Institute of the Republic, Member and Founder of the Institute of Public Instruction, and of the University Council, Envoy Extraordinary and Minister Plenipotentiary to His Majesty the Emperor of Brazil, on the part of the President of the Oriental Republic of the Uruguay;

Who, after having exchanged their respective full powers, which were found to be in good and due form, have agreed upon the following Articles :

ART. I. The Government of His Majesty's the Emperor will supply the Government of the Oriental Republic of the Uruguay with the sum of 60,000 patacoons monthly, by way of a loan, to commence from the 1st day of November proximo.

II. These loans shall continue for as long a time as the Government of His Majesty the Emperor may judge convenient; nevertheless, they shall not be withdrawn without 3 months' previous notice being given.

III. Besides this sum, the Government of His Majesty will also lend to that of the Republic at once, the sum of 138,000 patacoons in order to meet extraordinary expenses as well as those incurred in July, August, September, and October of the current year.

IV. The loans and sums mentioned in the preceding Articles shall be supplied (the first at the beginning of each month) to the Envoy Extraordinary and Minister Plenipotentiary of the Oriental Republic of the Uruguay, or to the person that the Government of the Republic may appoint.

V. The documents respecting the advance of the loans and the sum above mentioned shall serve as proof of debt due from the Oriental Government to that of Brazil, in order that they may be regulated and repaid in due time, and shall bear interest at the rate of 6 per cent. per annum, reckoning from their dates.

VI. The Oriental Republic of the Uruguay recognizes and declares itself debtor to the Government of Brazil in the sum of 288,791 hard dollars, arising from loans which it has received from Brazil up to this date, and the corresponding interests reckoned from the 1st day of November next ensuing; all former contracts in virtue of which these loans were made, being by this Convention

superseded and of no effect. This sum of 288,791 hard dollars shall bear interest for the future at the rate of 6 per cent. per annum, from the 1st of the next coming November.

VII. If the Oriental Government should get a loan by any means, the funds so obtained shall be especially and immediately applied to the reimbursement of the sums in which it recognizes and declares itself a debtor in this Convention.

VIII. No allegation of claims which the Oriental Government may consider itself to have against Brazil, even in the way of compensation, shall prevail against the payment of these sums.

IX. The monthly loans granted by Article II shall not be applied to the payment of former debts, either wholly or in part, nor can they be spent in anticipation. They shall be exclusively applied to the future expenses of the Departments of War, Foreign Affairs, and Government, and to those of the operations treated of in Article XIV.

X. For the exact and punctual payment of the sums and the interest of which this Convention treats, the Government of the Oriental Republic pledges and hypothecates all the revenues of the State, all the direct and indirect contributions, and especially the duties of the Custom-House.

XI. Immediately that the financial arrangements treated of below are effected, and as soon as the revenues of the Custom-House of Monte Video become free from the former obligations to which it was specially liable, the Government of the Oriental Republic of the Uruguay shall apply such part of the said revenue as may be agreed upon, to the payment of the interest and sinking fund of the sums treated of in this Convention; the sinking fund not being in any case less than 5 per cent. per annum; and the sums destined to pay off the said interest and sinking fund shall be paid monthly or weekly, as may then be agreed upon by the treasurer of the aforesaid CustomHouse, and the Minister of Brazil at Monte Video, or the person that the Imperial Government may appoint; the expenses of transmission of the said funds from Monte Video to Rio de Janeiro being borne by the Oriental Government.

XII. This part of the return treated of in the preceding Article shall be invariable, and with it the sinking fund of the capital will be augmented in the same measure as the amount of the interest is annually diminished.

XIII. If the Government of the Republic should consider it preferable, the amount of the part of the revenue of the CustomHouse that is to be appropriated to the payment of the interest and sinking fund in virtue of Article XI may be reduced proportionally with the loans treated of in Article I, should they ever take place.

XIV. In order to guarantee the sums lent by the Imperial Government, with the interest thereon, and the better to insure

the reconstruction of the Oriental nationality, the Government of the Republic binds itself:

1st. To declare in course of liquidation on the 1st of January, 1852, the whole debt of the Republic.

2nd. To appoint for the liquidation and classification of the said debt a Commission of Public Credit, composed of 5 members, 1 of whom shall be introduced by the Brazilian Minister at Monte Video.

3rd. To convert in the first 6 months of the next ensuing year, 1852, the whole debt of the State into bonds of Public Consolidated Debt, bearing interest at the rates of 6 and 3 per cent. per annum; making with the creditors such arrangements as may be considered suitable, or, if that be impracticable, by means of the law.

4th. The debt being liquidated, recognized, and classified, and inscribed in the great book of the public debt which shall be created, the accounts to be closed and all the actual business relating to them to be considered terminated.

5th. To fix upon a determinate period for the presentation of the documents of the actual debt which are to be converted into bonds of Consolidated Debt.

XV. In order to define more clearly the basis of the regular system into which the Republic is about to enter, as soon as the calamities that have disordered it are at an end; and as an important guarantee of the obligations it contracts by this Convention, the Oriental Government spontaneously obliges itself to adopt all the measures, within its ability, for the certain and complete fulfilment of that part of the LXXXIInd Article, 3rd chapter, and 7th section of the Constitution, which ordains the annual presentation of the estimates and accounts of the public expenditure to the General Assembly, and moreover not to contract any debt whatever, nor to recognise it, nor inscribe it in the great book, after the termination of the operations treated of in the XIVth Article of this Convention, without a special resolution of the above-mentioned Assembly.

XVI. The exchange of ratifications of the present Convention shall take place at Monte Video within the term of 30 days, reckoning from the present date, or sooner if possible.

In testimony whereof, we, the Undersigned, Plenipotentiaries of His Majesty the Emperor of Brazil and of the President of the Oriental Republic of the Uruguay, in virtue of our full powers, have signed the present Convention with our hand, and have caused to be put to it the seal of our arms.

Done in the city of Rio de Janeiro, on the 12th day of October, in the year of our Lord Jesus Christ 1851.

(LS.) PAULINO JOSE SOARES DE SOUZA. (L.S.) ANDRES LAMAS.

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