Garcia was in a difficult situation as the direct responsible for the defeat of the war, and Pedro II, who sat on the throne of the Brazilian Empire, was also having a hard time.

The war was lost, and all the contradictions that had been hidden surfaced.

In terms of the country's economy, Pedro's accumulation of family funds in the early days of his ascension to the throne was exhausted in the Paraguayan War, and hundreds of thousands of young and middle-aged men were engaged in war-related industries, which promoted the development of Brazil's military industry, but caused heavy losses to the country's macroeconomic development.

The development of agriculture and light industry slowed down or even regressed, and a year after the start of the war, the Brazilian Empire began to import food, medicines, and light and heavy industrial products needed for daily life from Britain and France, and the wealth accumulated by the government and the people quickly flowed to Britain and France, directly promoting the development of industry in Britain and France.

Not only did the Brazilian Empire go to war without a single piece of land and a sterling indemnity, but even the southernmost state of Rio Gro Sul was taken by the Chinese Independence Army.

Pedro II had a very complicated mood, that is, he regretted that he easily provoked the war with Paraguay, and also complained that Garcia lost the battle, allowing the Chinese Independence Army to take advantage of the loophole and cause the main force to be wiped out.

Regret, resentment, Pedro II's mood is difficult to describe in words, but no matter how unwilling he is, the outcome cannot be changed, and what Pedro II has to do now is to deal with a series of adverse effects caused by the defeat in the war.

First of all, Garcia, as the core figure of the royalists, Pedro II could not be left alone, otherwise it would not only chill the royalists, but also increase the momentum of the republicans and weaken the influence of the Brazilian royal family and the emperor's control over Brazil.

Second, after the defeat of the Paraguayan war, Bolivia and Peru were ready to move, and Peru submitted to the Brazilian government to discuss the ownership of the disputed areas between the two countries, while Bolivian President Adolfo publicly declared all agreements signed between the former president and Brazil null and void, urging the Brazilian army to withdraw from the occupied Bolivian lands, otherwise the Bolivian army would attack the invading Brazilian army.

Pedro II did not think that Bolivia and Peru had such strength, because before that, the Paraguayan army that attacked the Brazilian state of Mato Grosso had been expelled from the country, and if it were not for the heavy losses of the main force of the Brazilian army caused by the Paraguayan war, the Paraguayan army attacking Mato Grosso would have paid a huge price.

The strength of Peru and Bolivia is not in the eyes of Pedro II, but the threat posed by the four spheres of influence of Peru, Bolivia, Paraguay, and the Chinese Independence Army should not be underestimated.

If the four powers secretly form an alliance against Brazil, the Brazilian Empire is in danger.

Pedro II's worries are somewhat unnecessary, not to mention that the Chinese Independence Army has clashed with Peru and Bolivia, even if the four major powers form an alliance, because of the geographical barrier, it cannot cause fundamental harm to Brazil.

Peru and Bolivia have the flavor of taking advantage of the fire to make demands on Brazil, and at the same time, they are also motivated by their own special national conditions.

The leaders of Peru, Bolivia and even Paraguay are all powerful caudillos in the country, and their ascension to power does not depend on the democratic election of the people in the country, but on the fact that their generals and officers use rifles and cannons to put them on the presidency.

Therefore, the presidents of the three countries made a unanimous choice to threaten Brazil with war not on the basis of an objective consideration of national strength, but for their own interests.

The warlords are often fanatical and irrational, and the fighting against the Chinese Independence Army has caused the Peruvian and Bolivian warlords to lose a lot of profits, and the most serious losses belong to the middle and lower level officers in the core of the army, their property and food have been swept away by the Chinese Independence Army, and they need to be compensated from other places for the huge losses.

The Peruvian and Bolivian armies are not the opponents of the Chinese Independence Army, so it is unlikely that they will retaliate against the Chinese Independence Army, the wealth of the Indians and ordinary peasants in the country has long been exploited by the warlord forces, and the property and land obtained by the ordinary people are limited again, and the over-oppression of the low-level people in the country will provoke an incident similar to the uprising of the Chinese Independence Army.

Just when the new Bolivian President Adolfo felt anxious, it was reported that the Brazilian army was completely annihilated under the attack of the Chinese Independence Army and the Paraguayan army, and only 5,000 of the 50,000 main Brazilian troops fled back to China, and the Argentine and Uruguayan troops also retreated back to the country, and the Chinese Independence Army seized Rio Gro Sul and intended to entrench it as a base all the time.

With the loss of the main force of the Brazilian army, the Chinese Independence Army and Paraguay eyeing Brazil, Adolfo's original concern of recovering the territory saw the dawn of a solution, and at the same time, taking advantage of the loss of the main Brazilian force to seize the rubber-rich Acre region, he could also obtain economic compensation and appease the mood of the domestic army.

In 1867, Melgarejo and Brazil privately signed a treaty stipulating that Brazil would exchange territory for the Acre region, and promised to build the Madeira-Mamoré railway linking the two countries, so as to solve the problem of the passage of Bolican products to the Atlantic Ocean. In addition, Bolivia ceded to Brazil areas inhabited by Brazilian immigrants in the south and north of Acre. Thus, Brazil has acquired a total of 191,000 square kilometers of territory from Bolivia. The price paid by the Brazilian side was only a few million Brazilian currency and a batch of arms, and because of the Paraguayan war, the railway that the Brazilian side promised to build was never built.

Because of a treaty with no legal effect and some money weapons, Brazil expanded 191,000 square kilometers of territory.

With 191,000 square kilometers of Bolivia, Adolfo struggled with how to regain it since he came to power, and the outcome of the war in Paraguay gave him an opportunity.

There is no sacredness in the empire, and at the same time, it can be said that there is no good and harmless country, Brazil began to officially become a colony, the area was only one-third of the current area, and then after a series of expansions, the area doubled in size in the early nineteenth century, and then Brazil successively annexed Uruguay and French Guiana, using the means of forcible seizure to continuously acquire territory from surrounding countries.

The territory of the Brazilian Empire continues to expand, and at the same time, the surrounding countries have also been offended by him, Uruguay has been annexed by Brazil, and Brazil is an ally is a last resort, Argentina has also suffered from Brazilian aggression, but Argentina's strength is not bad and has not been annexed by Brazil, while Bolivia and Peru are constantly being cut, the Acre region originally belonged to Peru and Bolivia respectively, but now the Acre region is forcibly occupied by Brazil.

Acre is a vast area and a strategically important one, and it is not reconciled to lose this region, whether it is Bolivia or Peru, and because in the face of Brazil, a common enemy, Peru and Bolivia have come together and become allies with better relations. Dies, the two will discuss countermeasures before issuing a statement to Brazil.