1770: Treaty of Madrid

Here is that story!
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Map 52

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The question of borders between Andean Argentina, now under Spanish protection, and Brazil quickly arises.

The Spanish disarmed Louis II of Argentina who had to make do with a small guard of 1000 men. But the Breton militias (up to 50,000 men) remain armed and remain a danger and a means of pressure for Brazil.

Conan III took advantage of this to establish military posts and penal colonies in the areas he claimed: Amazonia and Southern Patagonia, including Tierra del Fuego. All officially but not occupied Spanish territories.

In 1764 the Brazilians founded Manao on a Portuguese village established since 1669. It became the center of the Brazilian Amazon, which however attracted few settlers. Tefé was founded the following year.
In 1766 the Brazilians founded Uchouaillie in Tierra del Fuego which became the site of a penal colony with a sinister reputation.
In 1768 the Brazilians settled in Port des Monts which gave Brazil its first port on the Pacific. Under the pretext of fighting the Mapuche Indians, Brazilian soldiers even shot Spanish border guards.

Spain threatens Brazil with war but realizes that it will not be able to hold out. It must concede a new border which gives the bulk of the Amazon and Southern Patagonia to Brazil: Treaty of Madrid of 1770. It also concerns Holland for Surinam.

In 1770 South America had 20,934,000 inhabitants including 15,614,000 in Brazil, 4,760,000 in the Spanish Empire, 500,000 free Indians and 60,000 in Dutch Suriname.

Brazil brings together 75% of the continent's population and 91% of the 10,584,000 whites (many of whom actually have Indian blood) who are now the majority on the continent (50.8%).
The mixed race represent the second group and number 6,000,000 (28.7%). They are mostly mixed bloods of white and Indian.
There are 3,400,000 Indians, mainly under Spanish control and only represent 16% of the total.
There are 951,000 blacks (87% of whom are in Brazil), or 4.5% of the total.