During the period of civil war resulting from slavery and secession, the American government had little time to cultivate intimate political, social or commercial intercourse with South American countries. On questions in regard to foreign intervention, it maintained the letter of the Monroe Doctrine, but carefully declined South American invitations or suggestions seek ing American adhesion to an alliance to guar antee the sovereignty of South American states. A difficult question arose in 1862 in regard to protection of the Panama transit route. The American government through Secretary Sew ard recognized American duty at Panama but carefully avoided interference in the internal quarrels of Colombia. The adjustment of claims through conventional arrangements for claims commissions or arbitration, begun be fore 1860 and continued even during the Civil War period, became especially prominent there after and removed many sources of irritation and possible collision. The more important in a period of four decades were negotiations with New Granada (or Colombia) in 1857, 1864 and 1874-75; with Chile in 1858, 1873 and 1892; with Paraguay in 1859 and 1887; with Vene zuela in 1859, 1866, 1888 and 1892; with Ecua dor in 1862, 1865 and 1893 (Santos case) ; with Peru in 1863 and 1868; and with Brazil in 1870.
Since 1865 the American government has frequently indicated its friendly desire for the welfare and peaceful relations of South Amer ican neighbors. When Spain, in a war begun against Peru in 1864, threatened to seize the Chinca Islands, the American government promptly expressed its opposition in a protest to the proposed annexation, although it care fully avoided any actual participation in the war into which it could easily have been drawn by the expectations of Chile and Peru, and stated that American policy did not shield American states from a discharge of their just obligations.
In 1866, when Spain threatened to take per manent possession of the islands as a means of reimbursing the expense of the war through the sale of guano, Secretary Seward secured her withdrawal by a warning that in case of such occupation the United States could not be expected to remain neutral. American medi ation resulted in conferences between repre sentatives of the United States, Spain and the allied republics at Washington, and finally in an armistice (in 1871) which, after consider able delay, eventuated in a treaty of peace. A later controversy between Peru and Chile con cerning expenditures in maintaining the allied naval squadron in this war was arbitrated in 1875 by the American Minister to Chile by con sent of the American government.
Meantime, in October 1866, the American government, although in the interests of peace willing to exercise its good offices to aid in stop ping the unhappy war of La Plata (directed against Paraguay by Brazil, Argentina and the Oriental Republic), declined to adopt sugges tions for a demonstrative action following the Brazilian rejection of the American good offices.
In 1871, acting promptly on a report that Ger many had proposed to several European powers the adoption of joint measures to induce Vene zuela to observe her agreements, it declared that the United States would observe with great concern the presentation and enforcement of demands against an American state by such a combination.
In 1881 Secretary of State Blaine planned for the United States to assume the posi tion of sole mediator in international- dis putes to which Latin American republics were parties, but his policy was not continued by his successor. In 1881 the American Ministers at Buenos Aires and Santiago de Chile success fully arbitrated a boundary controversy be tween Argentina and Chile. In the same year two special American envoys, sent by Secretary Blaine to secure peace between Chile and Peru and Bolivia, which were at war for possession of the nitrate mines near the junction of their boundaries, were unfortunately unsuccessful in their efforts and each was regarded as the partisan of the country to which he was sent. Later the experienced Wm. H. Trescot was sent to warn Chile against excessive demands which might induce the United States to secure co-operation of other American powers to coerce her into reasonable moderation.
Acting on this principle of pan-Americanism, Blaine in 1881 sent invitations to all independent American nations to meet for a discussion of arbitration, but these were recalled by his suc cessor who postponed the conference. The American government promptly recognized the new republic of the United States of Brazil, which was proclaimed following a revo lution in the fall of 1889 which resulted in the expulsion of the enlightened 'Emperor Dom Pedro II and his family on 14 Nov. 1889. In 1893-94 it declined to respect a blockade pro claimed (but later abandoned) by Brazilian naval insurgents against the Brazilian govern ment in the Bay of Rio Janeiro. After having refused to recognize as belligerents the insur gents who claimed to have set up a provisional government at Desterro on the island of Santa Catharina, in January 1894, Admiral Benham, in command of American naval forces and act ing in accord with the decision with naval com manders of German, English, French, Portu guese and Italian naval forces, gave notice and practical evidence of his intention, while not intervening to restrict the operations of either party, to protect all American ships entering the Rio waters, thus inducing the insurgents to abstain from further interference with com merce, and perhaps contributing to the later unconditional surrender of the insurgents (on 13 March 1894). In 1889 the President of the United States was chosen arbitrator in the settlement of the Argentine-Brazilian dispute in regard to Misiones territory and finally, in 1895, made an award in favor of the Brazilian claim — a conscientious decision which was gratefully. accepted by both governments.