In December an attempt was made to pass a law creating Sucre the perpetual capital of the republic. Until this Sucre had taken its turn with La Paz, Cochabamba and Oruro. La Paz rose in open revolt. On the 17th of January of the following year a battle was fought some 40 m. from La Paz between the insurgents and the government forces, in which the latter were defeated with the loss of a colonel and forty-three men. Colonel Pando, the insurgent leader, having gained a strong following, marched upon Oruro, and entered that town on 11th April 1899, after completely defeating the government troops. Dr Severo Alonso took refuge in Chilean territory; and Colonel Pando formed a provisional government. He had no difficulty in obtaining his election to the presidency without opposition. He entered upon office on the 26th of October, and proved himself to be a strong and capable chief magistrate. He had to deal with two difficult settlements as to boundaries with Chile and Brazil, and to take steps for improving the means of communication in the country, by this means reviving its mining and other industries. The dispute with Brazil over the rich Acre rubber-producing territory was accentuated by the majority of those engaged in the rubber industry being Brazilians, who resented the attempts of Bolivian officials to exercise authority in the district. This led to a declaration of independence on the part of the state of Acre, and the despatch of a body of Bolivian troops in 1900 to restore order. There was no desire, however, on the part of President Pando to involve himself in hostilities with Brazil, and in a spirit of concession the dispute was settled amicably by diplomatic means, and a treaty signed in November 1903. A new boundary line was drawn, and a portion of the Acre province ceded to Brazil in consideration of a cash indemnity of $10,000,000.