CONDITION OF SOUTH AMERICA.

Southland Times, Issue 899, 14 February 1868, Page 3

CONDITION OF SOUTH AMERICA.

(From the Panama Star and Herald, Dec. 24,) After a contest of two years and a half carried on between Paraguay and the Allies, with obstinate determination and unsurpassed courage on both sides, the war has suddenly and most unexpectedly collapsed. We predicted in an article written some weeks ago, after the repulse at Humaita, that this devoutly to be wished for event promised to come only from the power of further endurance failing on one side or the other. This power has operated, and at length overmatched Paraguay has yielded from sheer inability to further contend. The proposition to suspend hostilities originated with the Dictator, Solano Lopez, who, at the very time when the rest of the world expected nothing but an angry and vigorous continuation of the conflict, suddenly yields every point upon which the Allies have from the first insisted. The pressure must have been great and severe indeed to have produced such an act, from such a man — a man who has exhibited throughout the struggle the most determined and obstinate resistance — untiring energies — and all those other qualities in a remarkable degree, which enabled his father so long to maintain himself in the Dictatorship, an absolute, and most arbitary ruler ; — and no doubt the day which compelled this man to ask the hated Brazilian, to give peace to his prostrate country, and accept in return, the vast plains of the Gran Chaco, and the free navigation of the Paraguay river, was the bitterest and saddest he e^er saw. The questions at issue between Paraguay " and Brazil, and which led to the war, are rather remote and obscure, but we will endeavor to make them as intelligible as possible. For a period of eight or nine years previous to 1852 the republic of Uruguay maintained a contiuous war with Eosas, of Buenos Ayres, on questions growing out of the treaty of" 1828, between Brazil and Buenos Ayres, by which the independence of Uruguay was recognized and guaranteed. This nine years' war, as it was called, kept the southern frontiers of Brazil in constant alarm and disturbance, and in order to terminate this condition of things Brazil made a triple alliance with Paraguay (then under the senior Lopez,) Uruguay, and Entre Eios, and sent an entire corps (Tarmee, across the empire into Paraguay. Accompanying this expedition were a number of Brazilian engineer officers who greatly improved existing fortifications, and planned and constructed the splendid works at Humaita, which all the skill of the same officers have since been unable to reduce. Against this array of power and skill the tyrant Eosas was unable long to maintain himself, and at the battle of Monte Casaros, fought in February, 1852, was utterly overthrown and compelled to flee the country. For this great and opportune service Paraguay gave to Brazil the right of using the waters of the Paraguay Eiver, which flows from the centre of Western Brasil and affords steam navigation for upwards of two thousand miles into the interior, and without which the rich Brazilian province of Matto Grosso could only be reached by a long and tedious journey overland from Eio de Janeiro. On the faith of this treaty Brazil made the city of Albuquerque, situated two thousand miles from the Atlantic, a port of entry, and subsidized

r several lines of merchant steamers, which 3 ran regularly up and down the Paraguay, 9 into the very heart of Western Brazil. They brought incalculable benefit to the 1 vast country through which they passed * by creating trade which gave lucrative r employment to tens of thousands, and b opeirn\r up lnirkets for their varied and 3 valuable productions ; — other nations at--3 traded by the vastness of the field, made j treaties with the latter power based upon the treaty guarantees offered by the first, 3 and a rich and prosperous commerce was j carried on between the great province of f Matto Grosso and the Atlantic sea-board. i Three years later however the senior 1 Lopez, "regretting his former grant, re- * gardless of his treaty obligations, and unf gratefully forgetting the freedom and ; other benefits his country had received > from the interposition of Brazilian arms, i attempted to stop this commerce, and was only brought to terms by the prompt appearance of a fleet of Brazilian war ships at Buenos Ayres and a special ambassador at Asaumpcion. From that time until 1864 the navigation of the river went on as usual, but in November of that year the younger Lopez — who had succeeded to the dictatorship on the death of his father the year before,— burning to revenge himself upon Brazil for what he choose to consider the affront, put upon Paraguay by the treaty of 1857, commenced the war which has but now terminated so ingloriously. Lopez had long been gathering supplies and arms, in contemplation of this war, and craftily bided the time when he could see the opportunity to strike the first blow, which he intended should fall with crushing weight. At length it came. Brazil in 1864 suspended diplomatic relations with some of the European powers, and was busy besides m quieting the disturbances on her frontiers adjoining Uruguay, and deeming this a suitable time, Lopez commenced the war, by the commission of an outrage of the most flagrant description. "While one of the regular Brazilian steam packet boats was on her way from Assumpcion to Matto Gtosso, crowded with passengers, among whom were the governor of the last named province, and several other Brazilian officials, Lopez without a word of warning seized the steamer and all on board, and has kept them in possession ever since, making prisoners of the passengers and crew, and confiscating the boat and cargo. The unparalleled outrage he followed .sharply up by sending his men-of-war and soldiers up the river into the very province of Matto Gtosso, where he seized all the Brazilian towns, fortifications and material, com • mitted unheard of atrocities upon the defenceless people, and defied Brazil to defend herself. He then recklessly offended the Argentine Republic by boldly marching his troops through her territory, after permission to do so had been refused, and hence the latter power, as well to avenge the insult, as to crush so dangerons a character, freely entered into the alliance 1 with Brazil and Uruguay, to put down the turbulent leader who was a pest and a dread to them all. . This treaty stated on its face, that the alliance was not for the purpose of making war on Paraguay, but solely upon Lopez whose punishment or death, could alone assure permanent peace to that part of South America, The war then commenced in earnest, and the allied armies ere long drove the Dictator out of Brazil, and reoccupied all the towns and fortresses he had seized in Matto Grosso ; at Humaita however he has been able to maintain himself until now, but is at last compelled to yield even that, and grant besides all the points for which the allies have contended, viz : the free navigation of the Paraguay, the. cession of the Gran Chaco, and the banishment from South America of Lopez himself. He stipulates to retire from the country for two years. Hence peace and prosperity may now be looked for, and as the free navgation of all Brazilian waters, is offered to the world, and her ports opened to the flags of all nations, the trade with the vast, rich, populous and fertile regions which they irrigate will open a field for enterprise such a has rarely invited the industry and competitiou of man.