ARTICLE III.

Because of the fact that the areas exchanged by the two nations are not equal in extent, the United States of Brazil shall pay an indemnity of £2,000,000 (two million pounds sterling), which the Republic of Bolivia accepts with the design of applying it principally on the construction of railroads or other works tending to improve communications and develop commerce between the two countries.

The payment shall be made in two parts of £1,000,000 each, the first within the period of three months, counted from the exchange of ratifications of the present treaty, and the second on March 31, 1905.

ARTICLE IV.

A mixed commission named by the two Governments within the period of one year, counted from the exchange of ratifications, shall proceed to the demarkation of the boundary described in Art. I, commencing its labors within the six months following its nomination.

Any disagreement between the Brazilian and Bolivian commission which the two Governments may not succeed in settling shall be submitted to the arbitral decision of a member of the Royal Geographical Society of London, chosen by the president and members of the council of the same.

If the commissioners appointed by either of the high contracting parties to delineate the boundary fail to present themselves at the place and on the date agreed upon for the commencement of their labors, the commissioners of the others shall proceed of themselves to the marking, and the result of their operations shall be binding on both.

ARTICLE V.

The two high contracting parties shall conclude within the period of eight months a treaty of commerce and navigation based on the principle of the fullest liberty of land and river navigation for each of the nations; a right they shall both recognize in their dealings with each other perpetually, respecting fiscal and police regulations now established or that may in the future be established in their own territory. These regulations must be as favorable as possible to navigation and commerce, and they shall be made as uniform in the two countries as possible. It is, however, understood and declared that in this navigation is not included that from port to port of the same country, or internal river navigation, which shall continue in both countries subject to their respective laws.

ARTICLE VI.

In conformity with the stipulations of the preceding article and for the shipment in transit of articles of importation and exportation, Bolivia may maintain customs agents in the Brazilian custom-houses of Belém do Para, Manáos, and Corumbá, and in the other customs ports which Brazil may establish on the Madeira, and on the Mamoré, or at other points on the common boundary. Reciprocally, Brazil may maintain customs agents in the Bolivian custom-house at Villa Bella or in any other customs post Bolivia may establish on the common border.

ARTICLE VII.

The United States of Brazil obligate themselves to construct in Brazilian territory, themselves, or by means of private enterprise, a railroad from the port of Santo Antonio, on the river Madeira, to GuajaráMirim, on the Mamore, with a branch, which, passing through Villa Murtinho or other nearby point (State of Matto-Grosso), shall extend to Villa Bella (Bolivia) at the confluence of the Beni and Mamoré. This railroad, which Brazil shall endeavor to conclude within the period of four years, both countries shall make use of, with the right to the same rates and privileges.

ARTICLE VIII.

The Republic of the United States of Brazil declares that it will canvass directly with the Republic of Peru the question of boundaries of the territory comprised between the source of the Javary and parallel 11°, attempting to arrive at an amicable settlement of the dispute, without responsibility for Bolivia in any case.

ARTICLE IX.

The disagreements which may arise between the two Governments with regard to the interpretation and execution of the present treaty shall be submitted to arbitration.

ARTICLE X.

This treaty, after approval by the legislative power of each of the two Republics, shall be ratified by the respective Governments and the ratifications exchanged in the city of Rio de Janeiro within the briefest period possible.

In faith whereof we, the plenipotentiaries above named, signed this

treaty in two copies, one in the Portuguese and one in the Spanish language, affixing thereto our seals.

Done in the city of Petropolis this seventeenth day of November, in the year one thousand nine hundred and three.

Protocol of an agreement between Brazil and Bolivia for the postponement of the Labors of the Brazilian-Bolivian Arbitral Tribunal, created pursuant to Article 2 of the Treaty of November 17, 1903.

At a meeting of the Department of Foreign Relations of Brazil, at the City of Rio de Janeiro, on the 6th February, 1907, of the Minister of Foreign Relations of Bolivia, Dr. Claudio Pinilla, and the Minister of Foreign Affairs of Brazil, Dr. Jose Maria da Silva Paranhos do Rio Branco, being thereunto duly authorized, they entered into the following agreement:

Art. 1. The labors of the Arbitral Tribunal created by virtue of the provision of Article 2 of the treaty of the 17th November, 1903, which have been suspended since the 20th of May, 1906, shall recommence as soon as the Government of Bolivia is empowered to appoint its arbitrator, within the term of one year, the day of the resumption of work to be fixed by an exchange of notes.

Art. 2. The Apostolic Nuncio, as is agreed, shall be the President of the Tribunal.

Art. 3. The term of one year, beginning with the date of the re-opening, is hereby fixed for the termination of the labors of the Tribunal.

In faith and testimony of which they signed and sealed this protocol in duplicate, each one in the Spanish and Portuguese languages, and at the place and date above mentioned.

Instructions for the Mixed Brazilian-Bolivian Commisson of Demarcation, signed at Rio de Janeiro on the 6th February, 1907.

At a meeting in the Department of Foreign Relations of Brazil, of the Minister of Foreign Relations of Bolivia, Dr. Claudio Pinilla, and the Minister of Foreign Relations of Brazil, Dr. Jose Maria da Silva Paranhos do Rio Branco, being thereunto duly authorized they formulated the following instructions by which shall be governed the Mixed Brazilian-Bolivian Commission, which is to make the demarcation of the frontier described in paragraphs 1, 2 and 3 of Article 1 of the treaty concluded at Petropolis on the 17th November, 1903, the said Ministers agreeing that, at the end of said labors, or previously, should it appear convenient, there shall be prepared and signed supplementary instructions for the demarcation of the lines treated of in paragraphs 4, 5, 6 and 7 of the said article.

Art. 1. Each of the two Commissions, Bolivian and Brazilian, appointed by virtue of the provisions of Article 4 of the treaty of the 17th November, 1903, shall be composed of a Chief Commissioner, of a Secretary, and of as many substitute commissioners, aids to the Chief Commissioner, and functionaries of the health service, transportation and commissary as may appear necessary to the Government.

An escort shall accompany each Commission.

Art. 2. The two Commissions shall meet at Corumba in the State of Matto Grosso on the day which the two Governments may designate by means of an exchange of notes, within six months following the date of the present instructions.

There, at the first conference the Chief Commissioners, their substitutes, assistants and secretaries shall proceed to the examination and comparison of the authenticated copies of their appointments and likewise to the examination of the authenticated copies of the present instructions. The regularity of said documents having been established, a minute of the fact shall be made, the Mixed Brazilian-Bolivian Commission of boundary demarcation remaining thus established.

Art. 3. Each one of the two Commissions will provide itself with the necessary floating material, and the two shall in common put their chronometers in order, verifying also the quality and the state of the instruments which they have at their disposal.

Art. 4. The Mixed Commission shall proceed to the demarcation of the boundary described in paragraphs 1, 2 and 3 of Article 1 of the treaty, included between Bahia Negra and the south entrance of the canal Pedro II or Rio Pando.

Art. 5. The demarcation shall be commenced at any of the extreme or intermediate points of the frontier described in the before-cited paragraphs 1, 2 and 3 of Article 1 of the treaty, according as may be most convenient to the work, in view of the local circumstances and the season in which the Commissioners have to operate.

Art. 6. These labor shall be executed at different points of the frontier, the Mixed Commission dividing itself for that purpose into sub-commissions or parties in which the Commission of each one of the two countries shall be represented. The chief commissioners shall draw up by common consent the instructions by which those sub-commissions shall be governed.

Art. 7. The boundary shall be marked by land marks of a permanent construction at the extreme points of the different lines and also at intermediate points where they may be considered necessary by either of the two Commissions.

Art. 8. A minute shall be drawn up of the location of each land mark describing the same, and indicating its geographic position.

Art. 9. Any disagreement between the Bolivian-Brazilian Commissions shall be submitted to the decision of their Governments in order that they may proceed in pursuance of the provision of the second paragraph of Article 4 of the treaty.

Art. 10. The Commission shall present to their respective Governments in duplicate a map of the region marked out, as likewise the necessary partial plans, authenticated by the Commissioners.

Art. 11. The provisions, instruments, and any articles whatsoever which the Commissions may have to transport from one territory to the other in the discharge of their duty, shall enter into it absolutely exempt from customs duties and from whatsoever internal tax.

Art. 12. As soon as the demarcation of the boundary described in paragraphs 1, 2 and 3 of Article 1 of the Treaty of Petropolis, shall be finished, the Commission shall continue their work on the rest of the frontier at the time and in the manner agreed upon by the Chief Commissioners, the rules established in the present convention being applicable to said work, as likewise the prescriptions of Article 4 of the treaty of the 17th November, 1903.

In testimony whereof the two Ministers above mentioned sign and seal these instructions in duplicate, each one in the Spanish and Portuguese languages, at the City of Rio de Janeiro at the place above stated, on the 6th day of February, 1907.