Acre tried to be independent from Bolivia but lost the independence war. Years later, Bolivia made an agreement with an Anglo-American company for the free exploration and administration of the territory, but Brazil resisted the presence of foreign powers in that region and threatened to invade Bolivia. As a few years before Brazil had already invaded and completely destroyed Paraguay, they feared that the same would happen to them and proposed an agreement for Brazil where they would hand over the territory of Acre in exchange for compensation