No. 496.
Mr. Fish to Mr. Stevens.
Washington, April 19, 1872.
Sir: This Department has reason to apprehend that the forebodings of many at the close of the late war against President Lopez, of Paraguay, that the allies would extinguish an independent government there by absorbing the territory of that republic, are about to be realized. We have not information full or explicit enough to warrant a definitive opinion, but it is understood that Brazil has already asserted a claim to a considerable part of the territory of which Paraguay held possession prior to the war. It is believed to be for the interest of the United States that Paraguay should not lose its independence or its territory, but should, profiting by the experience of the past, endeavor in the future to maintain a really republican government over that region which, if peace should be uninterrupted, must from the vast natural resources there become an important country in that quarter, and a bulwark against encroachment from any of its neighbors.
You will keep the Department fully apprised of anything which may take place in relation to this important subject or that may affect the interests of the other republics bordering on the great imperial government of South America.
I am. &c.,