BOLIVIA. 



83 



was the moving power in this " unwise and un- 

 jn-t enterprise." It was believed that Chili, 

 unprepared fur military efforts, and afraid of 

 impairing her sound financial position, would 

 submit to any wrongs rather than go to war. 

 iVni had made her guano and nitrate trades a 

 government monopoly, and the Peruvians cal- 

 culated that, if the Chilian competition could 

 be suppressed by the arbitrary measures of the 

 Bolivian Government, the price of commodities 

 for which there was a constant demand among 

 European and American agriculturists might 

 be indefinitely raised. When the Santiago Gov- 

 ernment protested, the crushing export duty 

 was abolished, but the Chilian Company's prop- 

 erty \vas declared confiscated to the state. If 

 this policy had been successful, the Peruvian 

 and Bolivian Governments would have shared 

 between them a monopoly of guano and nitrate 

 beyond the reach of any rivalry. There was 

 reason to hope at one time that the offer of the 

 Chilian Government to refer the matter to an 

 impartial arbitration might have been accept- 

 ed. But Peruvian influence appears to have 

 been too strong for Bolivia, and this offer was 

 refused. The rejoinder of Chili was swift and 

 decisive. On February 12th, a day celebrated 

 as the anniversary of the Chilian victory over 

 Spanish domination at Chacabuco in 1817, 

 public meetings denounced the act of Bolivia 

 as one of bad faith and spoliation, and de- 

 manded redress by arms. Already, however, 

 the Chilian Government had recalled its Minis- 

 ter and sent forward both ships and troops to 

 the scene. The ironclads Admiral Cochrane 

 and Bernardo O'Higgins hurried to join their 

 mate in Antofogasta harbor, and with them 

 went a small force of Chilian regulars, who on 

 February 14th landed and occupied the town 

 without firing a gun. The next day the O'llig- 

 gins took possession of the port of Mejillones, 

 while the land forces successively occupied Cara- 

 coles, Cpbija, Calaraa, and Tocapilla. In a word, 

 the entire coast-line was blockaded by Chilian 

 vessels and garrisoned by Chilian troops. Thus 

 Chili's energy had won the first move in the 

 campaign, in a complete mastery of the dis- 

 puted territory. Reinforcements went for- 

 ward, and the Chilian residents and workmen 

 in the nitrate and mining districts were also 

 organized, equipped, and drilled. Chilian pos- 

 tal and customs regulations and general laws 

 were introduced into Antofagasta, two Chilian 

 newspapers were founded, military engineers 

 planned permanent fortifications, and the Chi- 

 lians evidently meant to stay. It would seem 

 as if the Government of Santiago had resolved 

 to accept the nullification of the treaty of 1874 

 which Bolivia attempted, and to hold by force 

 the territory which Chili originally claimed. 

 A loan of a million and a quarter and an issue 

 of inconvertible paper were sanctioned at once 

 by the Chilian Chambers. 



No immediate resistance was offered by Bo- 

 livia, whose government was evidently await- 

 ing the result of a proposed Peruvian media- 



tion. In the mean time President Daza issued 

 two proclamations: one calling the nation to 

 arms to resist the invader, and the other de- 

 claring an amnesty for all political offenders, 

 since at the present crisis private quarrels 

 should be forgotten in the effort to regain the 

 territory arbitrarily occupied by Chili. Public 

 enthusiasm was intense. The wealthy citizens 

 of La Paz offered to the Government, as a war 

 contribution, 50 per cent, of their revenues ; 

 but Daza, declining such a munificent gift, re- 

 stricted his acceptance to 10 per cent, of the 

 sum offered, stating that until it was known 

 whether Bolivian troops would be allowed to 

 pass over Peruvian soil, and to make use of 

 Peruvian railways, he could not estimate the 

 cost of the campaign. 



The following decree was issued shortly after 

 the proclamations just referred to : 



Hilarion Daza, President of the Republic of Bolivia, 

 considering that the Government of Chili has invadea 

 de facto the national territory, without observing the 

 rules of international law or the practice of civ-Sized 

 nations, violently expelling the authorities and Bo- 

 livian citizens resident in the department of Cobija ; 

 that the Government of Bolivia finds itself in duty 

 bound to adopt the energetic measures which the grav- 

 ity of the situation demands, without departing, no w- 

 ever, from the principles recognized by the rights of 

 nations ; 



I decree : 



ARTICLE I. All trade and communication with the 

 Ecpublic of Chili is prohibited during the continuance 

 of the war undertaken by that republic against Bo- 

 livia. 



ART. II. The Chilians resident in Bolivian territory 

 must disoccupy it within the term of ten days from 

 the date of the notification which shall be made them 

 by the local political authority ; they being at liberty 

 to take with them their private papers, their baggage, ' 

 and articles of personal use. 



ART. III. The expulsion ordered in the previous ar- 

 ticle can only be suspended for the term which should 

 be strictly indispensable on account of sickness or 

 other serious impediment in the judgment of the au- 

 thorities. 



ART. IV. The respective authorities will proceed, as 

 a war measure, to embargo the fixed ana movable 

 property belonging to Chilian subjects within the ter- 

 ritory of the republic, with the exception of the ob- 

 jects designated in Art. II. The mining property be- 

 longing to Chilians, or in which there should ue share- 

 holders of that nationality, may continue to be worked 

 under the charge of an administrator appointed by the 

 authorities, or with the intervention of a representa- 

 tive of the Government, as they may think most de- 

 sirable. 



ART. V. The net proceeds of the mining property 

 belonging to Chilians, or of shares belonging to the 

 same, shall be deposited in the national Treasury. 



ART. VI. The embargo ordered by this decree will 

 be changed to final confiscation, should the nature of 

 the hostilities engaged in by the Chilian forces require 

 an energetic retaliation on the part of Bolivia. 



ART. VII. All transfers of Chilian interests made at 

 a later date than the 8th of November last, on which 

 date the Chilian Government declared the treaty of 

 1874 annulled, will be ignored ; and any contract 

 which should have been agreed upon in this respect 

 will be considered void. 



Given in the city of La Paz, the 1st day of March, 

 1879. 



(Signed) H. DAZA, 



The mediatory intervention of Pern led only 

 to the discovery by the Santiago Government 



