Since independence, Bolivia has lost over half of its territory to neighboring countries. Through diplomatic channels in 1909, it lost the basin of the Madre de Dios River and the territory of the Purus in the Amazon, yielding 250,000 km2 to Peru. It also lost the state of Acre, in the Acre War, important because this region was known for its production of rubber. Peasants and the Bolivian army fought briefly but after a few victories, and facing the prospect of a total war against Brazil, it was forced to sign the Treaty of Petrópolis in 1903, in which Bolivia lost this rich territory. Popular myth has it that Bolivian president Mariano Melgarejo (1864–71) traded the land for what he called "a magnificent white horse" and Acre was subsequently flooded by Brazilians, which ultimately led to confrontation and fear of war with Brazil.