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Provisional government

With Solano López on the run, the country lacked a government. Pedro II sent his Foreign minister José Paranhos to Asunción where he arrived on 20 February 1869 and began consultations with the local politicians. Paranhos had to create a provisional government that could sign a peace accord and recognize the border claimed by Brazil between the two nations. According to historian Francisco Doratioto, Paranhos, "the then-greatest Brazilian specialist on Platine affairs", had a "decisive" role in the installation of the Paraguayan provisional government.

With Paraguay devastated, the power vacuum resulting from Solano López's overthrow was quickly filled by emerging domestic factions which Paranhos had to accommodate. On 31 March, a petition was signed by 335 leading citizens asking Allies for a Provisional government. This was followed by negotiations between the Allied countries, which put aside some of the more controversial points of the Treaty of the Triple Alliance; on 11 June, agreement was reached with Paraguayan opposition figures that a three-man Provisional government would be established. On 22 July, a National Assembly met in the National Theatre and elected Junta Nacional of 21 men which then selected a five-man committee to select three men for the Provisional government. They selected Carlos Loizaga, Juan Francisco Decoud, and José Díaz de Bedoya. Decoud, being pro-Argentine, was unacceptable to Paranhos, who had him replaced with Cirilo Antonio Rivarola. The government was finally installed on 15 August but was just a front for the continued Allied occupation. After the death of Lopez, the Provisional Government issued a proclamation on 6 March 1870 in which it promised to support political liberties, to protect commerce and to promote immigration.

The Provisional Government did not last. In May 1870, José Díaz de Bedoya resigned; on 31 August 1870, so did Carlos Loizaga. The remaining member, Antonio Rivarola, was then immediately relieved of his duties by the National Assembly, which established a provisional Presidency, to which it elected Facundo Machaín, who assumed his post that same day. However, the next day, 1 September, he was overthrown in a coup that restored Rivarola to power.