1903 Brazilian Invasion of Bolivia
The 1903 invasion of Bolivia involved military force, but it ended relatively peacefully and by diplomacy rather than fighting. Prior 1899, Acre was a region of Bolivia that got very little attention. It was rugged, inaccessible, and had very little to offer. It was inhabited mostly by native Indians, and some Brazilians and Bolivians. However, the interest in Acre changed drastically with the increase in the price of rubber.
Suddenly, adventurers were willing to tackle the wilds of Acre in search of rubber and many of them were Brazilian. On January 2, 1899, Bolivia decided to set up customs in Acre, which upset the now 18,000 Brazilian settlers and explorers that were taking advantage of the rubber to be found in Acre.
The Brazilians decided to rise up and oust the Bolivians who lived in Acre, which prompted the Bolivian government to send in a small military mission to secure Acre. The Brazilian rubber tappers prevented the military from moving through. The Brazilian resistance grew as thousands of rubber tappers refused to give up their claims and wanted to be controlled by Brazil and not by Bolivia. Up until 1903, the rubber tappers had received only minimal support from Brazil but as the tappers fought on, the Brazilian government decided to send in forces in January 1903. On January 24, 1903, the Bolivians in the area surrendered to the rebels and the Republic of Acre was declared.
A larger contingent of Bolivian troops entered the area and a front between Bolivian and Brazilian troops formed on opposite banks of a river. No serious fighting ever took place because diplomacy between the two nations led to the Treaty of Petropolis. Under the treaty, Brazil would get control of Acre. In return, they would pay 2 million pounds and agreed to build a railroad between the two countries to increase trade. It took 30 years for the taxes collected from Brazil Acre to pay off the 2 million pounds and the money for the railroad.