Valdivia occupied the extreme south of the country, had a seaport with fortifications which were considered impregnable, and was supported by the Archipelago of Chiloe, where the people were all Royalists and had a Royalist garrison.

Early in 1812 the first printing-press was established in Chile, and on the 13th February appeared the first newspaper, entitled La Aurora de Chile, edited by Camilo Enriquez, a priest, assisted by an Argentine named Vera y Pintado, and by Irrizarra of Guatemala. From the United States, together with the printing-press, came Mr. Poinsett as consular agent, who introduced a new element into the political opinions of the country, democratic ideas, which new ideas found at first little acceptance save in the army, where they were fostered by Carrera as a counterpoise to the federal ideas which had gained strength during the recent events.

On the night of the 9th July a revolutionary movement broke out in Concepcion, headed by the partisans of Rozas, but secretly fomented by the Spanish party, which dissolved the Provincial Junta. Rozas went to Santiago, whence he was banished by Carrera to Mendoza, and died there on the 3rd March, 1813.

Carrera was now without a rival, and the revolution gained in unity and in strength. The various parties commenced to fuse together, with his authority as a common centre, and the desire for independence became more marked. When Consul Poinsett celebrated his national anniversary of the 4th July, the flag of the stars and stripes was seen entwined with an unknown tricoloured flag, bearing a lone star in one of its corners. This unknown flag was the new flag of Chile. On the 16th July the tricoloured cockade was worn by all the citizens of Santiago, and on the 30th September the new flag was formally recognised as the national ensign. Nevertheless independence was not then declared, still government was carried on in the name of Ferdinand VII., while the Carreras went about the city at night in disguise, with groups of young men, pulling down the escutcheons of the Creole aristocracy.

In order to test his popularity, Carrera then sent in his resignation, which the Cabildo refused to accept. In consequence of a misunderstanding with his brother, Juan José, who was still envious of him, he repeated his resignation, but in conjunction with his brother Luis, reserved the command of the army. His father, Don Ignacio, was appointed to succeed him, and supported by Don Juan José adopted a reactionary policy, which was opposed by José Miguel and Luis, at the head of the troops.

The two brothers, assisted by two friends, then drew up a plan for a constitution, which was presented to the Junta by one of their adherents. This plan created a Senate of seven members, and contained two clauses which provided that:—

“Ferdinand VII. was king on condition of accepting and swearing the Constitution made by the people,” and “no decree emanating from authority outside the territory shall have any effect, those who obey it being punished as traitors to the State.”

These clauses were accepted by the Junta, but Don Ignacio Carrera, being afraid to sign them, retired from the Government, and Don José Miguel returned to office.

Carrera was again dictator, and opposition was silent in the face of a new danger. A Royalist army had invaded Chilian territory and occupied the South. He was now the champion of a noble cause; all the military chiefs, even those who opposed his policy, obeyed him willingly; the people saw in danger the justification of a strong government; the military repute he had brought with him from Europe caused him to be regarded as the first soldier of his country.

Abascal, Viceroy of Peru, was then more than seventy years old. By firmness and prudence he had maintained peace in his Viceroyalty in the midst of the commotions which stirred all Spanish America. More than that, he had made Peru the centre of the Royalist reaction, had crushed rebellion in Upper Peru, had made war on the Argentine provinces, had sent an expedition to Quito, and had kept Chiloe under his orders. He had watched the Chilian revolution from its commencement, waiting for a favourable opportunity to attack it. Antonio Pareja, an experienced soldier, was named Commandant-General of Valdivia and Chiloe, and early in 1813 reached the island with five vessels, a number of officers, fifty soldiers, and fifty thousand dollars.