In large skillet, cook green pepper, onion, chilies, garlic, basil, rosemary in hot oil until vegetables are tender.
Drain stewed tomatoes well, reserving liquid, and chop well. Add water to tomato liquid to equal 1 Cup. Stir rice and tomato liquid into vegetables. Add chopped tomatoes, salt and pepper.
Cook covered over low heat until liquid is absorbed and rice is done.