Under the before-mentioned impression the Prueba was hastily sent to Callao before our arrival, but the Venganza, being in a condition unfit for sea, remained at Guayaquil. On being positively assured of the dishonourable transaction which had taken place, on the morning of the 14th of March I sent Captain Crosbie on board the Venganza to take possession, of her, for Chili and Peru jointly, being unwilling to embroil Chili in hostilities with Guayaquil by seizing her on our own account, as we were indisputably entitled to do, having chased her from port to port, until, destitute of provisions, she was compelled to take refuge in that port.
My orders to Captain Crosbie were to hoist at the peak of the Venganza, the flag of Chili conjointly with that of Peru. This act gave great offence to the Guayaquil Government, which manned its gun-boats, erected breast-works, and brought guns to the river side with the apparent intention of firing upon us; the Spanish sailors, who shortly before had sold their ships from the dread of having to fight, being extremely active in these hostile demonstrations.
Upon this, I ordered the Valdivia to drift with the flood tide in the direction of the gun-boats, now filled with Spanish officers and seamen. Imagining that the frigate was about to attack them—though there was no intention of the kind—these heroes ran the boats ashore, and took to their heels in most admired disorder, not stopping till they had gained the protection of the city.
The Junta, finding that we did not consider their warlike demonstration worthy of notice, remonstrated at my taking possession of the Venganza, but without effect, as I was not going to permit the Chilian squadron to be thus cheated out of its prize. I therefore proposed such terms as were best calculated to be accepted and ratified by the Junta of Government, composed of Olmedo, Kimena, and Roco, as follows:—
1st.—The frigate Venganza shall remain as belonging to the Government of Guayaquil, and shall hoist her flag, which shall be duly saluted.
2nd.—Guayaquil guarantees to the Chilian squadron, on responsibility of 40,000 dollars, that the frigate Venganza shall not be delivered to, nor negotiated for with any Government, till those of Chili and Peru shall have decided on what they may esteem most just. Moreover, the Government of Guayaquil is bound to destroy her rather than consent that the said vessel shall serve any other state till such decision be made.
3rd.—Any Government which may henceforward be established in Guayaquil shall be bound to the fulfilment of the articles here made.
4th.—These articles shall be understood literally, and in good faith, without mental reservations or restrictions.
(Signed) &c. &c.
After the ratification of this agreement, the Government of Guayaquil addressed to me a letter acknowledging the important services which had been conferred on the States of South America, and assuring me that "Guayaquil would always be the first to honour my name, and the last to forget my unparalleled achievements," &c, &c. Yet no sooner had I sailed from the port, than the Venganza was given up to the agent of Peru, but the 40,000 dollars have never been paid.