The whole sum produced to government by the mines of Brasil is, on an average, estimated at 148,500/. The ciamonds arc purchased by British and Dutch lapidaries, who cut and bring them into a state proper for sale.
After having acquired the entire possession of Brasil, the Portuguese began to form schemes fur extending its boundaries. Their settlements bordering on those of the Spaniards, and both these nations being ambitious and enterprising, it was to be expected that limitary disputes should arise between them. The Rio de la Plata early appeared to the Portuguese to form a natu ral and convenient boundary to their territory. Soon af ter the era of the first discovery of these countries, they had sailed up that river, and occupied its northern bank. They did not, however, form any permanent settlement there ; and as their attention was withdrawn by subse quent events, the Spaniards considered that side of the river as annexed ICJ their territory of Buenos Ayres. In 1680, however, the court of Lisbon, reviving their ancient claim, caused an establishment to be formed at Santo Sa cramento, near the mouth of the La Plata. The Spaniards appealed to the authority of the pope, who, happening to be in the interest of the Portuguese, admitted, indeed, that the original line of demarcation had assigned that district to Spain ; but insisted, that subsequent pro ceedings had transferred the right to Portugal. Mean time the Spanish governor of Buenos Ayres adopted a more vigorous method of determining the controversy. Ile equipped a formidable armament, and, finding no force sufficient to resist hint, soon levelled with the ground the walls of the rising colony. The Portuguese court remonstrated loudly against this proceeding ; and being supported by the authority of the pope, obtained an agreement, by which Santo Sacramento was restored to them, and the two nations were to enjoy in common the contested territory. This joint occupation was not likely to assuage the animosities of two hostile nations ; and the war of the succession soon ensuing, allowed their hostile disposition to operate. The Spaniards again prevailed ; and, in 1705, the Portuguese were expelled anew front Santo Sacramento. By the treaty of Utrecht.
however, the English procured for them, not only its restoration, but also the exclusive possession of the ter ritory on which it stood. Santo Sacramento then rose into a place of considerable importance. Its situation was Favourable for a contraband trade with Buenos Ayres ; and this trade was soon carried to an extent which gave equal prosperity to the colony and umbrage to the Spanish government. The latter could find no better method of guarding against the injurious effects of an establishment so reluctantly sanctioned, than by themselves forming settlements on the opposite side of the river, and carrying these as close as possible to the Portuguese territory. This proximity soon gave rise to quarrels; and perpetual hostilities unauthorised by the mother country, were carried on by the colonists of the respective nations. In order to put a stop to these, a convention was at length concluded between the two nations, by which Portugal resigned the colony of Santo Sacramento, on receiving in return seven of the mis sionary settlements formed by the Jesuits on the eastern bank of the Uruguay. Spain, however, had no right to make this concession ; because the nations who compo sed these missions had submitted voluntarily to the di rection of the Jesuits, but had not rendered themselves subjects of the king of Spain. They refused, therefore, to concur in the deed which transferred them to Portu gal, and took up arms in their own defence. But they were unable to contend with the regular troops sent from Brasil, and were compelled either to submit or emi grate. The Portuguese court then insisted, that, as they had obtained possession of these settlements, not in consequence of the treaty, but by force of arms, they were absolved from the conditions on which they had been ceded. Thus all things reverted to their former confusion ; and the same perpetual and harassing war fare was again recommenced. It continued to rage till the year 1777, when the Portuguese court found itself under the necessity of ceding the disputed territory, re ceiving, however, at the same time, that of St Pedro, which had been wrested from them.