The Treaty of Velasco is significant because it was an agreement that effectively ended hostilities between Mexico and Texas following the pivotal Battle of San Jacinto, which took place on April 21, 1836. This battle was crucial as it resulted in a decisive victory for Texian forces and ultimately led to the capture of Mexican General Santa Anna. The treaty consisted of two parts: one public treaty, which recognized the independence of Texas, and a secret treaty that outlined the withdrawal of Mexican troops from Texas territory.
While recognizing Texas's independence is a component of the treaty, the primary context of the agreement is its role in ceasing military conflicts between the two entities after the battle. This cessation of hostilities was essential for the establishment of Texian governance and further negotiations, leading to Texas's future relations with both Mexico and the United States.
The other options do not accurately encapsulate the essence of the Treaty of Velasco. The treaty indeed recognized Texas's independence, but the core aspect was the end of hostilities after the battle. The treaty did not focus on establishing trade relations or defining Texas’s borders in direct terms, making the understanding of its historical significance essential in the context of Texas's quest for sovereignty.