Still in fear of Portugal and under a mis apprehension of the meaning of the Monroe Doctrine, Brazil sought an alliance with the United States which secretary Clay cour teously declined. In July 1824 Colombia also inquired whether the United States would agree to into a treaty of alliance to save the Americas from a calamity of the despotic system, but Jefferson advised Monroe to reply that the United States could not protect them without concurrence of Eng land. In 1826 in response to the invitation of Colombia and Mexico, the American govern ment sent delegates to the Panama Congress of American plenipotentiaries called by Bolivar's famous circular of 7 Dec. 1824; but, owing to delay caused by the disapproval of the Ameri can senate, the delegates failed to reach Panama in time for the Congress, thus disappointing Latin-American expectations. Whatever plans may have been conceived by the Adams ad ministration for American hegemony of the American continent (as suspected by Canning) were weakened by the publicity which the Panama debate gave to American racial preju dices and by contemporary American protests against the proposed Colombian-Mexican at tack on Cuba.
In 1825-26, the possible need of a more competent naval force on the west coast (to protect American commerce from possible piracy which might result from the unsettled condition of South American governments) first attracted the attention of the American government to the need of a trans-isthmian pas sage at Panama which was again considered in 1835 (when Charles Biddle without proper au thority of President Jackson went to Panama and obtained a canal concession which his government declined to accept) and finally re sulted in a transit treaty with New Granada in 1846.
In 1831 a long dispute with Argentina arose through the American destruction of an establishment which the government of Buenos Aires had made on the Falkland (or Malavinas) Islands, afterward (1833) effectively occupied by Great Britain under a claim of title as serted and maintained for 60 years. To the un settled shores of these islands American citi zens engaged in whale and seal fisheries had resorted for shelter and necessary supplies without molestation for more than 50 years, and they objected to the seizure of their ves sels in 1831 and imprisonment of crews at Soledad by one Vernet who claimed to act under an indefinite decree issued by Buenos Aires on 10 June 1829. The American govern ment, regarding Vernet's acts as lawless and piratical, promptly asked Buenos Aires for a disavowal and sent a naval vessel which de ported Vernet and his followers to the shores of Uruguay. Following the demand of the Argentina government for reparation, Mr. Bay lies, the American charge, demanded his pass ports, resulting in a severance of diplomatic relations for several years. In 1841 General Alvear at Washington pressed claims for in demnity which Secretary Webster declared must await the final settlement of the British Argentine controversy over the right of juris diction to the islands. The long-dormant claim of American liability was revived in 1883-85 and pronounced by the American government as wholly groundless because of the derelict condition of the islands which justified the act of the American naval officer.
After 1840 the increasing importance of closer relations with South America was recognized. As early as December 1842 the American government received information of a proposed Lima Congress of Latin-American states (Argentina, Peru, Bolivia, New Granada, Brazil and Mexico) to sustain the dominant parties in those states and to oppose the ad vance of the United States on the American continent. In 1845 Argentina and other South American governments were disappointed in their hopes of active interference of the Ameri can government against the Anglo-French blockade of the coast of Buenos Aires, result ing from Brazil's invitation of 1844 for their intervention to protect the independence of Uruguay which had been recognized by a treaty of 1828 signed both by Brazil and by Buenos Aires. The American gov ernment, satisfied with assurances obtained from the British government and apprehensive of no danger from temporary European inter vention, decided to remain neutral. In 1844 for protection of American interests it sent a small fleet which offended the Argentina gov ernment by seizure of vessels of the Argentina squadron — an act which was promptly dis avowed. Later, in March 1846, Secretary Buchanan, stating that the moral influence of the United States was in favor of Argentina, instructed the American Minister at Buenos Aires to report promptly any British-French activities indicating territorial designs. In June 1845 Edward A. Hopkins was appointed to Paraguay to obtain informa tion with a view to possible recognition of its independence, but in 30 March 1846, largely from regard to Argentina, he was peremptorily recalled for exceeding his authority by his diplomatic negotiations with Paraguay in favor of recognition and by an offer of mediation be tween the governments of Paraguay and Buenos Aires in favor of Paraguay which by league with Corientes against Argentina would have become the ally of England and France in their designs. Fortunately the perplexing ques tion 'presented to the American government by participation of European powers in La Plata affairs was finally settled by discontinuance of the blockade, first by England and soon there after by France. In 1850 the American Min ister at Buenos Aires in reply to a hypothetical question dispelled the illusion of General Rosas that the United States would aid Argentina to resist France in case of war. In 1846 serious complications were threatened by disturbances at Panama, across which communication be came very important to the United States, and by a projected expedition of General Flores (formerly president of Ecuador) against Ecuador — an expedition which was supposed to have for its purpose the creation of monarchies in the new world. Two years later, Venezuela, fearing British designs of annexa tion along the Guiana border as a result of British activities there since 1841, turned to the United States in hope of an alliance. At the same time new dangers of disorders were threatened by a territorial quarrel between Peru and Bolivia.