Treaty of Petrópolis
Encyclopedia
The Treaty of Petrópolis, signed on November 11, 1903, ended tensions between Bolivia
Bolivia
Bolivia officially known as Plurinational State of Bolivia , is a landlocked country in central South America. It is the poorest country in South America...

 and Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...

 over the then-Bolivian territory of Acre (today the Acre state
Acre (state)
Acre is one of the 27 states of Brazil. It is situated in the southwest of the Northern Region, bordering Amazonas to the north, Rondônia to the east, Bolivia to the southeast and the Ucayali Region of Peru to the south and west. It occupies an area of 152,581.4 km2, being slightly smaller...

), a desirable territory during the contemporary rubber boom
Rubber boom
The rubber boom was an important part of the economic and social history of Brazil and Amazonian regions of neighboring countries, being related with the extraction and commercialization of rubber...

.

The treaty, drafted by Brazilian foreign affairs minister Barão do Rio Branco
Barão do Rio Branco
José Maria da Silva Paranhos, Jr., 1st Baron of Rio Branco was a Brazilian diplomat, geographer, historian, politician and professor, considered to be the "father of Brazilian diplomacy". He was the son of famous statesman José Maria da Silva Paranhos, Sr....

, gave Brazil the territory of Acre (191,000 km²), in exchange for over 3,000 km² of Brazilian territory between the Abunâ
Abuna River
The Abuna River is a river in South America. As a part of the Amazon Basin, it forms part of the border between northern Bolivia and north-western Brazil....

 and Madeira
Madeira River
The Madeira River is a major waterway in South America, approximately 3,250 km miles long The Madeira is the biggest tributary of the Amazon...

 rivers, a monetary payment of two million British pounds, paid in two installments, and a pledge of a rail-link between the Bolivian city of Riberalta
Riberalta
Riberalta is a town in the Beni Department in northern Bolivia, situated where the Madre de Dios River joins the Beni River. Riberalta is on the south bank of the Beni River....

 and the Brazilian city of Porto Velho
Porto Velho
Porto Velho is the capital of the Brazilian state of Rondônia, in the upper Amazon River basin. The population is estimated to be 426,558 people...

, which would bypass the rapids on the Madeira.

The rail line was called the Madeira-Mamoré Railway. It was supposed to go as far as Riberalta, on the Rio Beni, above that river's rapids, but had to stop short at Guajará-Mirim. This was actually the third such attempt. In the 1870s, during the rubber boom, the American George Church was defeated twice by the heat, the difficulty of the terrain and appalling loss of life from fever. The contract for the Madeira-Mamoré railway required by the treaty was won by another American, Percival Farquhar. Construction began in August 1907 and was completed on July 15, 1912. The project cost US$33 million. At least 3,600 men died building the 367 km of track Guajaramirin-Station (popular estimates say that each one hundred sleepers cost one human life). The Madeira-Mamoré railway had about a year of full operation before the combination of the collapse of rubber prices, the opening of a railway from Bolivia to the Pacific via Chile and of the Panama Canal rendered it uneconomic. It was kept going until 1972. The BR-364 road took over many of the railway bridges, leaving what remained of the track to enthusiasts to salvage what they could.
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