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Historical writing in English on the diplomatic aspects of the Brazilian naval revolt of 1893–4 tends to be based on United States sources and, consequently, an American interpretation runs through most writing on the subject. This interpretation regards the revolt as an attempt to restore the monarchy by the insurgents with secret support from the European Powers, especially Britain, who were jealous of the increasing American political and economic influence in the newly established Republic of Brazil.
On 31 January 1849 the representative of the Peruvian government, General Osma, and the Committee of Spanish American Bondholders signed an agreement in London on the terms for settling debts to British investors which had been in default since October 1825. More than a year before, the Peruvian president had spoken of his administration's desire ‘to bring this matter at once to a termination, and revive the credit which the Republic lost in Europe almost at the same time as it came into existence’ Peruvian credit was, as hoped, restored by the act of good faith in 1849, and was further boosted by the government's growing income from the guano trade, which had been in operation for almost a decade. Having wiped the slate clean in 1849, Peru went on to expand its overseas debt commitments and become, in the space of a few years, the largest Latin American borrower on the London money market. The year 1849, therefore, marks a notable turning point in Peruvian financial history.