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[Inclosure 2.]

Convention of arbitration between Brazil and Peru for the solution of complaints of their citizens, concluded in Rio de Janeiro on the 12th of July, 1904.

The Government of the Republic of the United States of Brazil and the Government of the Republic of Peru desiring in the interests of the good relations of friendship between the two countries that, owing to facts which took place in the alto Juruá and in the alto Purús, the complaints of their citizens be examined and resolved promptly and equitably, gave for this purpose the necessary instructions to their plenipotentiaries, viz:

The President of the Republic of the United States of Brazil to Mr. José Maria da Silva Paranhos do Rio-Branco, minister of foreign affairs; and

The President of the Republic of Peru to Dr. Don Hernán Velarde, envoy extraordinary and minister plenipotentiary of the same Republic in Brazil; Who, properly authorized, agree to the following:

ARTICLE I.

The complaints of Brazilian and Peruvian citizens for damages or violences which they may have suffered or pretend to have suffered in the alto Juruá and in the alto Purús since 1902 shall be deferred to the judgment of a tribunal of arbitration, which shall sit in the city of Rio de Janeiro and shall begin its functions six months after the exchange of the ratifications of this compact.

ARTICLE II.

There will be formed a tribunal of two arbiters, one a Brazilian, the other a Peruvian, nominated by the same respective governments one month after the exchange of the ratifications of this convention, and a subarbiter, chosen at the same time by the two governments from among the chiefs of the diplomatic corps accredited to Brazil.

ARTICLE III.

Within the space of a year, counting from the first meeting, or within six months, if possible, the tribunal should examine and resolve all claims, with the power to judge them according to law or ex æquo et bono."

Only those claims will be examined and judged which are received within six months, counting from the beginning of their work.

ARTICLE IV.

The conclusions of the tribunal will be considered by the high contracting parties as decisive and satisfactory, perfect and irrevocable, obliging also the claimants beforehand to accept them as definite.

ARTICLE V.

The payment of indemnities resolved will be made by one government to the other within the term of a year, counting from the date of the closing of the session of the tribunal, and without interest or any deduction.

ARTICLE VI.

Each of the two Governments will pay the salary of its arbiter and the helpers of same, as well as half of the salary of the subarbiter, which will be fixed opportunely.

ARTICLE XII.

The ratifications of this compact will be exchanged in Rio de Janeiro within the space of four months, or sooner if possible.

In faith of which, we, the plenipotentiaries above mentioned, sign the same on two copies, each one in the Portuguese and Spanish language, putting upon them our respective seals.

Done in Rio de Janeiro the twelfth day of July, one thousand nine hundred and four.

[L. S.]

[L. S.]

RIO-BRANCO.
HERNÁN VELARDE.

BULGARIA.

AGREEMENT BETWEEN TURKEY AND BULGARIA TO MAINTAIN PEACE AND ORDER IN MACEDONIA.

No. 33.

Bulgarian series.]

Mr. Wilson to Mr. Hay.

AMERICAN LEGATION,
Athens, April 15, 1904.

SIR: I have the honor to inclose herewith a copy (London Times, April 11) of the Turco-Bulgarian agreement signed at Constantinople on the 8th instant. A protocol has been added, stating that both parties shall make special arrangements concerning: (1) The measures to be taken to insure the security of the frontier; (2) the regulation of the postal and telegraph service; (3) the reciprocal extradition of criminals and deserters; (4) conditions regarding military service; (5) the powers of their respective commercial agents; (6) arrangements for the future connection of railways, as the interests of the two contracting parties may require.

I have, etc.,

CHARLES S. WILSON.

[Inclosure. Translation.]

[From the London Times, April 11, 1904.]

Turco-Bulgarian agreement.

The Imperial Ottoman Government and the principality of Bulgaria have agreed upon the following points:

1. The principality of Bulgaria pledges itself to prevent upon its territory, as well as upon the territory of eastern Rumelia, the formation of revolutionary committees and of armed bands, as well as to prevent all acts and conspiracies directed against the Empire, and to punish with all severity such persons as, having committed acts against public peace in the neighboring provinces, have taken refuge in Bulgaria or in eastern Rumelia.

2. The principality shall take the necessary measures to prevent the introduction into the neighboring vilayets of all explosives or poisons, as well as any article prejudicial to public health.

3. The reforms agreed upon between Turkey, Austria, and Russia for the Vilayets of Salonika, Monastir, and Kossovo shall be applied by the Ottoman Government. The general amnesty which the Sultan in his gracious clemency has been pleased to grant will have full effect, and in consequence such persons as have been imprisoned or exiled on a charge of, or for the prevention of, crime, or who have, directly or indirectly, committed revolutionary acts, and all such as have been convicted of political offenses, shall be set at liberty and repatriated, with the exception of persons convicted of dynamite attacks against ships, railways, bridges, and public institutions.

4. The inhabitants of Rumelia who, in consequence of the recent disturbances, have taken refuge in Bulgaria or eastern Rumelia, or who, while remaining in their homes, have had their houses destroyed, will be granted assistance in their villages by the imperial authorities for rebuilding their homes, and will also have their lands returned to them.

5. A special arrangement shall be made for the reciprocal extradition of criminals and deserters. In order to prevent brigands and revolutionary bands from crossing the frontier, mixed corps shall be established on both sides, and a separate agreement shall be made on this subject. A mixed commission shall be established to settle pending questions and shall begin its work at once.

6. The customs restrictions lately imposed exceptionally upon articles from Bulgaria and eastern Rumelia shall be rescinded, and the former facilities shall be reestablished.

7. Railway trains shall be allowed to cross the frontier without hindrance, and no obstacles shall be placed in the way of Bulgarians traveling on their private business from the principality and eastern Rumelia who are furnished with the regulation papers.

8. Civil and judicial posts shall be open to Bulgarians who have the requisite qualifications.

No. 31.

Bulgarian series.]

CONDITIONS IN MACEDONIA.

Mr. Jackson to Mr. Hay.

AMERICAN LEGATION, Athens, March 7, 1904. SIR: I have the honor to report that a hopeful feeling continues to prevail with regard to events in the Balkans in the coming spring. It is reported that engagenments have been made between the Porte and the Bulgarian agent at Constantinople with a view to preventing trouble between Turkey and Bulgaria, and the Bulgarian military authorities have taken measures, much more serious than those taken last year, to prevent the formation of bands on Bulgarian territory and their crossing over into Turkey. Even the insurgent leaders are said to have announced that they are ready to await the result of the so-called reforms and will do nothing to prevent their being a success. The Comitadges continue to terrorize the Macedonian peasants. especially those who have recently detached themselves from the Bulgarian exarchate and have gone over to the orthodox patriarchate. I have, etc.,

JOHN B. JACKSON.

No. 35.

Bulgarian series.]

Mr. Jackson to Mr. Hay.

AMERICAN LEGATION,
Athens, May 14, 1904.

SIR: Although the Comitadges continue to be active on a small scale and there are more or less frequent reports of encounters between small bands and Turkish troops, it can not be denied that the reforms introduced by Russia and Austria and the recent TurkishBulgarian agreement have brought about comparative tranquillity in Macedonia, even if both the reforms and the agreement are as yet but partially and imperfectly effective. In returning to Athens from Belgrade I felt no hesitation in traveling by way of Uskub and Salonika. Turkish soldiers (frequently Albanians) were present at every station and at all the tunnels, bridges, etc., but so

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far as could be seen from the train the country seemed to be peaceful, the peasants happy and good-natured, and the fields generally under cultivation. It does not seem probable that any general outbreak will take place this year.

Recently Servian and Bulgarian students have exchanged visitsthe Bulgarians having been in Belgrade while I was there a few days ago, and having been received with a good deal of enthusiasm and only a day or two ago there was a meeting between the Prince of Bulgaria on his way to Europe, and the King of Servia at Nisch. I have, etc.,

JOHN B. JACKSON.

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SIR: I have the honor to report that upon June 1 the President of the Republic formally opened the regular session of Congress, and read upon the occasion the message which is inclosed herewith, in the original text, a summary in English text accompanying.

The message is noteworthy only in that it depicts very clearly the improved financial condition of the country.

I have, etc.,

[Inclosure.]

HENRY LANE WILSON.

President's speech at the opening of Congress.

SUMMARY.

The foreign relations of the Republic are declared to be on an excellent footing. Negotiations for a treaty with Bolivia are reported to be progressing satisfactorily; while the difficulties in the way of a final arrangement with Peru have not yet disappeared.

The Republic of Panama has been recognized.

TELEGRAPH SERVICE.

A convention is being negotiated with Bolivia, and one has been celebrated with Argentina. The new lines over the Cordillera are nearly completed.

COMMERCE.

In 1903 the commerce amounted to $348,429,793. Imports amounted to $146,276,667 and exports to $202,153,126; that is to say, $27,000,000 more than in 1902, of which $17,000,000 correspond to nitrate. The exportation of copper increased $2,300,000; the agriculture, $8,000,000.

RAILWAYS.

The following have been opened to the public: From Pueblo Hundido to Inca, from Serena to Rivadavia, from San Diego to Providencia (Santiago), and from Talca to San Clemente, 161 kilometers.

There are 237 kilometers in construction. The railway from Pitrufquen to Loncoche and Loncoche to Antilhue (114 kilometers) will be opened to the public. The other 117 kilometers will be finished in 1905.

The following lines are under consideration: Aguas Blancas to Vallenar, Vallenar to La Serena, San Marcos to Illapel, Los Vilos to Rayado, Curico to Hualañé, Cauquenes to Quirihue and Coelemu, San Felipe to Putaendo, Chillan to Tomé,

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