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- Mato Grosso do Sul:
Official website: http://www.ms.gov.br
Capital: Rio Branco
Area: 153,149 km2
Important cities: Cruzeiro do Sul, Tarauacá, Sena Madureira, Brasiléia
Economy: rubber, castanha, agriculture, cattle
Until the beginning of XX century, Acre belonged to Bolivia.
However, since early in the previous century, Brazilians were exploring rubber trees in the area; when, in 1899, the Bolivian government tried to reclaim
control over the region, the Brazilians rebeled and called for an action of the Brazilian government.
In November 17th 1903, with the Treaty of Petropolis, the governments reached an agreement. In exchange of the territory in dispute, Brazil paid 2 million sterling
pounds to the Bolivian, surrendered some areas in where today is the state of Mato Grosso, and built a rail-road into Bolivian territory.
The integration of Acre to Brazilian territory determined the boundaries of the country; no more territory was lost or gained. The negotiations were conducted by
diplomat Barao do Rio Branco, who became the icon of Brazilian diplomacy and after whom the capital city was named.
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