Bolivian troops in 1900
to restore order. There was no desire, however, on the part of
President Pando to involve himself in hostilities with Brazil, and in a
spirit of concession the dispute was settled amicably by diplomatic
means, and a treaty signed in November 1903. A new boundary line was
drawn, and a portion of the Acre province ceded to Brazil in
consideration of a cash indemnity of $10,000,000.

The long-standing dispute with Chile with regard to its occupation of
the former Bolivian provinces of Tacna and Arica under the Parto de
Tregna of the 4th of April 1884 was more difficult to arrange
satisfactorily. In 1895 there had been some prospect of Chile conceding
an outlet on the sea in exchange for a recognition of the Chilean
ownership of Tacna and Arica. The discovery, however, of secret
negotiations between Bolivia and Argentina caused Chile to change its
conciliatory attitude. Bolivia was in no position to venture upon
hostilities or to compel the Chileans to make concessions, and the final
settlement of the boundary dispute between Argentina and Chile deprived
the Bolivians of the hope of obtaining the support of the Argentines.
President Pando and his successor, Ismail Montes, who became president
in 1904, saw that it was necessary to yield, and to make the best terms
they could. A treaty was accordingly ratified in 1905, which was in many
ways advantageous to Bolivia, though the republic was compelled to cede
to Chile the maritime provinces occupied by the latter power since the
war of 1881, and to do without a seaport. The government of Chile
undertook to construct a railway at its own cost from Arica to the
Bolivian capital, La Paz, and to give the Bolivians free transit through
Chilean territory to certain towns on the coast. Chile further agreed to
pay Bolivia a cash indemnity and lend certain pecuniary assistance to
the construction of other railways necessary for the opening out of the
country.

See C. Wiener, _Bolivie et Perou_ (Paris, 1880); E. Mossbach,
_Bolivia_ (Leipzig, 1875); Theodore Child, _The South American
Republics_ (New York, 1801); Vicente de Ballivian y Rizas, _Archive
Boliviano. Collecion de documentes relativos a la historia de Bolivia_
(Paris, 1872); Ramon Sotomayor Valdes, _Estudio historico de Bolivia
bajo la administracion del General don Jose Maria Acha con una
introducion que contiene el compendio de la Guerra de la independencia
i de los gobiernos de dicha