Buenos Ayres, in spite of the dangers which surrounded her, thus performed her duty to her sister States, boldly confronting the alliance of the absolute kings, and thereby gained the goodwill of England; but the convention was rejected in Chile through the intervention of the Columbian minister. Alzaga then went on to Peru and presented it to both Presidents, to Torre-Tagle and to Riva-Agüero. The first made use of it to open a traitorous correspondence with the Royalists, the other used it as a plea for arranging an armistice of his own, and for sending back the Columbian auxiliaries; but, strange to say, it was accepted by Bolívar as a way out of his difficulties, he merely stipulating that it should, first of all, be ratified by the Spaniards. His object was to gain time for the arrival of reinforcements from Columbia.

At the beginning of 1824 the situation of the Patriots in Peru was very precarious. The Royalists had 18,000 men, flushed with recent victories; the Patriots had only half that number. At this juncture an event happened which had for a time most disastrous effects upon the fortunes of Peru. Just as the Spaniards were making a last effort to regain the dominion of the Pacific the Patriots lost the fortress of Callao, while, almost simultaneously, President Torre-Tagle passed over to the Royalists, taking with him a part of the national forces, and the Spaniards re-occupied Lima.

The Argentine contingent was very discontented; the Peruvians were jealous of them and treated them as foreigners, tolerated only on account of their services. They were badly clothed and fed, their pay was both irregular and insufficient; the Government by whose authority they had become an army no longer existed; the general to whom they owed their existence had deserted them. In March, 1823, they had applied for protection to the Government of Buenos Ayres, and had been adopted by the Province, then the only representative of the nation.

Bolívar commenced to prepare for offensive operations by concentrating his forces at Pativilca, about 140 miles to the north of Lima, and withdrawing most of the Columbian garrison from Callao, supplied their place with the Rio de la Plata regiment and the 11th battalion of the Andes, putting the whole garrison under command of General Alvarado.

On the night of the 4th February, 1824, the rank and file of the garrison mutinied under two Argentine sergeants, named Moyano and Oliva, and imprisoned their officers. Their first demands were for 100,000 dollars as arrears of pay, and that they should be sent back to their own country. While Government hesitated to accede to these terms the spirit of insubordination gained strength among the soldiery, their own leaders could not prevent excesses. Among other Spanish prisoners in the dungeons, was a Colonel Casariego, whom Oliva had known in Chile; the two sergeants took counsel with him, and by his advice released the Spanish prisoners and put their own officers in the dungeons. He then persuaded them that their situation was desperate, and that their only chance of safety lay in embracing the Royalist cause and hoisting the Spanish flag. The troops were reorganized and placed under Spanish officers. Moyano was made a colonel and Oliva a lieutenant-colonel, all sergeants and corporals were promoted, and a messenger was sent to Canterac placing the fortress at his disposal.

On the 7th February the flag of Spain was raised on one of the towers. A negro soldier of the Rio de la Plata regiment, a native of Buenos Ayres, known by the nickname of “Falucho,” refused to mount guard over the flag against which he had so often fought. He broke his musket against the flag-staff, and was shot, shouting—“Viva Buenos Ayres!”

The mounted grenadiers who were encamped in the valley of Cañete, mutinied also, and marched to join their comrades at Callao on the 14th February, but when they saw the Spanish flag flying over the walls they released their officers. One hundred and twenty of them returned to their allegiance, and represented their country in the liberating armies to the end of the war. Thus by mutiny and by treachery was dissolved the celebrated Army of the Andes.

As soon as Canterac heard of the mutiny at Callao, he sent a strong division under Monet from the Highlands, which joined the division of Rodil in the valley of Ica and marched on Lima. Torre-Tagle, who with his Minister of War, was in secret correspondence with the Royalists, joined them with some Peruvian troops, and issued a proclamation against Bolívar.

The Royalists were now masters of the Highlands, and of all the centre and south of Peru, and aimed at the dominion of the sea as well. A part of the Peruvian squadron was stationed at Callao. Admiral Guise with the Protector frigate and four armed boats, entered the port under the fire of the forts, boarded the frigate Guayas, formerly Venganza, and burned her, as also the Santa Rosa, and some merchant vessels, on the 25th February. The brig of war Balcarce was the only vessel saved, but the Royalists were expecting two Spanish frigates.

Bolívar issued terrible decrees for the evacuation of Lima, which were not obeyed, but on the 10th February Congress appointed him Dictator.