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The law of 1874 which regulated this had been found inadequate for the purpose intended, besides retaining recruiting by force in addition to the drawing by lot-a form of procedure which is contrary to the constitution.

It is quite clear that the ranks of the regular army will only be filled up by ballot when the number of volunteers forthcoming is insufficient. To wait, however, for this lack of volunteers, or for exceptional circumstance which may force us to put the army on a war footing, for the organization of the rules for ballot for military service, would be to show a lamentable lack of forethought, and would, indeed, amount to abandoning the defense of the country to the chances of measures taken in a hurry and without time for proper execution. The constitution lays down that every Brazilian is obliged to serve in the army for the defense of the country and of the constitution, and to insure the carrying out of this principle the law provides for reserves for the regular army-an example which is followed by every civilized nation. Failure to understand the object and mechanism of the law has given rise to much undeserved censure.

There is no question of “militarizing" the country by dragging off to barracks the young men and the laborers, and thus depriving agriculture, trade, and industry of the strong arm, whose fruitful labor develops the wealth and greatness of the country. Reflection will show what a multitude of barracks we should need and what enormous sums of money would have to be expended on the upkeep of the men, and that indeed our resources would be insufficient to support even half such a burden.

The law of ballot exists in several South American countries, our neighbors, whose social, political, and economic conditions are similar to our own, and no one will go so far as to say that in those countries work has suffered such an enormous setback as has been predicted will be the case here.

The effective strength of the army will remain the same as in previous years, and it is absurd to suppose that the new organization will result in disturbance of labor amongst us.

It will be easy and practicable to establish battalions and give them some indispensable practical knowledge such as they can obtain in instruction camps and maneuvers, in rifle ranges, and in training schools. According to law, the national guard was always supposed to undergo this training. The new law makes the reservists subject to the same training, but it will be given at the places, seasons, and times when it will least prejudice the ordinary occupations of those drawn by lot.

A natural corollary of the law of military service is the reorganization of the army on a basis in accordance with the progress of military science and art, reorganization which has been demanded by successive war ministers. The small effective strength of our army (the same indeed as it has been for many years) shows clearly that we have not the slightest wish to make ourselves a military power, and that all we desire is to take ordinary precautions and measures to secure the nation against possible aggression.

I would ask you to consider the reform of the law regulating penal process in the army. Experience has shown that the omissions and ambiguities of the present law give rise to delays which are prejudicial, not only to the prisoners but also to the discipline of the army itself, as they postpone the punishment of offenders.

Maneuvers took place in the second, third, fourth, fifth, and sixth military districts with satisfactory results, both officers and men showing great keenness. Every year practical instruction is developing, and, in the opinion of experts, we are making marked progress in this direction.

The construction of the smokeless-powder factory will be completed this year, and so soon as we have installed the proper plant in the arsenals for the preparation of projectiles we shall cease to be dependent on foreign markets for the purchase of ammunition.

The military town of Deodora is in course of construction, and will, when finished, permit of the concentration of the forces stationed in the capital of the Republic in a healthy and open spot, which will be invaluable for the healthy training, discipline, and practical instruction of the men.

As I informed you in my first message, the condition of the barracks and other military buildings in the various States of the Republic is not at all satisfactory, but the construction of new ones and the rebuilding and repairing of those at present in use can only be done piecemeal (in order to avoid large and immediate expenditure) by the appropriation of a certain sum in each

succeeding budget for this purpose. With the money already voted important work has been done on the barracks at Manaos, Obidos, Belem, S. Luiz do Maranhao, Lorena, Corumba, and Caceres, and on the forts at Obidos and Coimbra.

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Brazilian Congress continues during 1908 existing 20 per cent tariff reduction favor United States.

File No. 836/86.

DUDLEY.

The Acting Secretary of State to Ambassador Dudley.

[Telegram.-Paraphrase.]

DEPARTMENT OF STATE,
Washington, January 15, 1908.

(Mr. Bacon states that the department assumes that the decree signed by President of Brazil on the 11th instant puts reduction of 20 per cent in force retroactively as from January 1, and asks if this is correct.)

File No. 836/94-100.

Ambassador Dudley to the Secretary of State.

No. 126.]

[Extract.]

AMERICAN EMBASSY,
Petropolis, January 28, 1908.

SIR: I have the honor to report that the budget law for 1908 continues in force by its article 13 the provisions of article 18 of law No. 1452, of December 30, 1905, which itself continues in force the provisions of article 6 of law No. 1144 of December 30, 1903, which refers to the 20 per cent differential tariff to be accorded to certain imports from countries which make concessions to commodities of Brazilian production, such as coffee.

On the 3d instant I telegraphed the department as follows:1 On January 2, 1908, I addressed an official note to the foreign office, a copy of which is herewith inclosed, by which I requested

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then an executive decree, putting the authorization into force, be promulgated at the earliest possible moment. On the 10th instant the foreign minister sent me a reply, a copy and translation of which are inclosed, stating that the matter had been referred to the finance department.

On the 11th instant the desired executive decree was signed by the President and was published in the Diario Official of the 14th instant. Duplicate copies and a translation of the decree are herewith inclosed.

On the 16th instant I received the department's telegraphic instruction of the 15th, which I have the honor to confirm as follows:1 On receipt of which I sent the following telegram to the foreign office:

My Government cables me that it assumes that the decree signed by His Excellency the President of Brazil January 11 puts reduction of 20 per cent in force retroactively as from January 1, and instructs me to cable whether this is correct.

Failing to receive any reply, either official or unofficial to my telegram, I requested Secretary Lorillard to write to the director general of the ministry of foreign relations, on the 23d instant, for information in the premises. On the following day the director general replied, stating that the executive decree became operative on the 17th instant. A copy of Mr. Lorillard's letter and the director's reply are herewith inclosed.

In view of the fact that last year the executive decree was signed on the 10th of January and was in force retroactively from January 1, the surplus duties collected previous to the date of the decree being returned (see note from foreign office to Mr. Lorillard, chargé, of January 28, 1907, a copy and translation of which accompanied the embassy's No. 102 of January 30, 1907 2), on the 25th instant I addressed a further note to the foreign office, inquiring whether the 20 per cent reduction is not in force from January 1, 1908. A copy of this note is also inclosed.

My last telegram to the department on the subject was as follows: Unofficially informed executive decree January 11 not retroactive, but propose claim refund.

I have, etc.,

IRVING B. DUDLEY.

[Inclosure 1.]

No. 83.]

Ambassador Dudley to the Minister for Foreign Affairs.

AMERICAN EMBASSY, Rio de Janeiro, January 2, 1908. MONSIEUR LE MINISTRE: A part of article 13 of the budget law for the current year, which was promulgated in the Diario Oficial of yesterday's date, continues during the present year the provisions of article 18 of law No. 1452 of December 30, 1905, which grants a differential tariff scale of 20 per cent in favor of certain articles imported into Brazil from countries which make tariff concessions to Brazilian productions such as coffee.

Knowing that it is the intention of your excellency's Government to continue during the current year the same favor as was granted to certain articles imported from the United States of America during the whole of the past year See Foreign Relations, 1907, p. 93.

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and in order that the same reduction, duly authorized by Congress, may be enjoyed during the entire year, I beg that your excellency will see fit to suggest that the executive decree, whereby the authorization is put into force, be promulgated at the earliest possible moment.

Be pleased to accept, etc.,

IRVING B. DUDLEY.

[Inclosure 2.-Translation.]

The Minister for Foreign Affairs to Ambassador Dudley.

FOREIGN OFFICE,
January 10, 1908.

MB. AMBASSADOR: I have the honor to acknowledge the receipt of your No. 83 which your excellency addressed to me on the 2d instant, requesting that the decree conceding a reduction of 20 per cent on certain articles of American origin under the law in force should be given publicity with the least possible delay.

Assuring your excellency that I have already transmitted your request to the ministery of fazenda, I approve the occasion to reiterate, etc.,

RIO-BRANCO.

[Inclosure 3.-Translation.]

Decree No. 6820, of January 11, 1908.

Orders that during the current year decree No. 6079, of June 30, 1906, be observed.

The President of the Republic of the United States of Brazil, making use of the authorization contained in article 18 of law No. 1452, of December 30, 1905, renewed by article 13 of law No. 1837, of December 31, 1907, decides that, during the actual year, decree No. 6079, of June 30, 1906, shall be observed. Rio de Janeiro, January 11, 1908, 20th of the Republic.

AFFONSO AUGUSTO MOREIRA Denna.
DAVIS CAMPISTA.

File No. 836/93.

Ambassador Dudley to the Secretary of State.

[Telegram.]

AMERICAN EMBASSY,

Petropolis, February 19, 1908.

Department's telegram 16th ultimo. Brazilian minister of finance agrees refund 20 per cent.

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SIR: Referring to my No. 123, of the 28th ultimo,' I have the honor to report that yesterday, in conversation with the Brazilian minister of finance, after referring to the refusal to give retroactive

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operation to the decree of the 11th instant, which puts into effect the legislative authorization to grant to certain imports of American origin a tariff reduction of 20 per cent during the calendar year 1908, I called his attention to the Government's course pursued last year. The minister assured me that upon direct petition to him by any importer for a refund of this 20 per cent, paid by him into a Brazilian customshouse, he would cause the amount to be returned. I have, etc.,

IRVING B. DUDLEY.

BOUNDARY AND NAVIGATION AGREEMENTS BETWEEN BRAZIL
AND COLOMBIA.
File No. 7692/10.

No. 117.]

Ambassador Dudley to the Secretary of State.

AMERICAN EMBASSY, Petropolis, January 23, 1908.

SIR: In continuation of my No. 105 of December 21, 1907,1 with which I inclosed a translation of the boundary and navigation treaty between Brazil and Colombia, as well as a translation of the modus vivendi relative to navigation and commerce on the Iça or Putumayo River, and the supplementary protocol, all concluded and signed at Bogota on April 24, 1907, I have the honor to report that the above-mentioned agreements were approved by both houses of the Brazilian Congress without amendment during the closing sessions in December last, were sanctioned by the President on the 9th instant, and were promulgated in the Diario Official two days later. Í have, etc.,

IRVING B. DUDLEY.

ARBITRATION TREATY BETWEEN BRAZIL AND THE ARGENTINE REPUBLIC.

File No. 16546/4-5.

No. 288.]

Chargé Janes to the Secretary of State.

AMERICAN EMBASSY, Petropolis, November 11, 1908. SIR: I have the honor to inclose herewith a clipping from the Diario Official with a translation of the general treaty of arbitration between Argentine and Brazil, the ratifications of which were exchanged on the 9th instant.

I have, etc.,

HENRY L. JANES.

[Inclosure Translation.]

MINISTRY OF FOREIGN RELATIONS,
Rio de Janeiro, November 9, 1908.

The general treaty of arbitration between the Republic of the United States of Brazil and the Argentine Republic was to-day ratified by the President of

18ee Foreign Relations 1907, p. 108.

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