When the Spanish-American colonies united to secure their independence from Spain it was mutually agreed that there should be no “no man’s land.” To attain this end it was covenanted that the boundaries of the new Republics should be those assigned to each as a colony. In many instances those boundaries were ill defined, and in others conjectural or imaginary. As explorations proceeded these errors were discovered and naturally gave rise to territorial questions between neighboring nations.
Chile had but two neighbors and she had boundary disputes with both. The dispute with the Argentine led to the erection of a fort and the founding of a settlement in the Strait of Magellan by Chile in 1843. From that time until the boundary award by King Edward in 1903, the two republics were in a continual controversy over territorial limits, which on more than one occasion led them to the brink of war. With her other neighbor, Bolivia, Chile had a boundary dispute which has had far-reaching consequences. A modus vivendi which seemed to promise lasting peace was agreed upon. Contrary to expectation, however, the agreement produced war, procuring for Chile another neighbor and still another territorial dispute. Previous to the war of the Pacific, the province of Antofagasta, which was Bolivian territory, separated Chile and Peru, but as a result of that war Chile came into possession of the province of Antofagasta and consequently became a neighbor to Peru. Surrounded as she was then with three Republics individually and collectively maintaining a hostile attitude to her independent and aggressive policy, Chile was placed in a peculiarly delicate and dangerous political position. If one of her three neighbors made a move in its boundary question the other two pressed for a settlement of similar claims.
During the civil conflict in Chile her three neighbors took advantage of the internal disturbance to urge settlement of their boundary questions. And when the relations between Argentina and Chile became so strained as to make war imminent, Bolivia and Peru assumed a most aggressive attitude in demanding a settlement of the questions growing out of the war of ’79. Chile has not forgotten these acts of her neighbors, but her attitude is not one of resentment. Her desire is for peace, as has been demonstrated by her generous and amicable adjustment of differences with Bolivia and Argentina; peace at home and abroad, but peace with honor. She governs her sword in accordance with the motto of the Castilian Hidalgo: “No me desenvainas sin causa; no me envainas sin honor.” (I do not unsheath my sword without cause; I do not sheath it without honor.)
The territorial questions of Chile with Argentina and Bolivia have been definitely settled, and the three countries have been greatly benefited thereby. Chile and the Argentine have been relieved of the enormous drain upon their resources in the purchase of ships and preparations for war, and under treaty arrangements capital is seeking investment in Bolivia in the development of its natural resources. The only outstanding territorial question that Chile now has to deal with is that relating to Tacna and Arica.
Bolivia’s loss in the war with Chile was irreparable, depriving it of all coast territory and an outlet to the sea. It now occupies the unique position of being one of two inland countries in the sisterhood of South American Republics. After the war Chile took possession of the long strip of desert bordering on the Pacific, which furnished Bolivia access to the ocean and direct communication with the outside world. The territory is a rainless region, devoid of vegetation, but beneath its surface are nitrate deposits sufficient to supply the world, and its acquisition made Chile the richest country on the globe, in proportion to its population. It derives from that source about 90,000,000 pesos, equal to $30,000,000 United States currency, or $8.50 per capita, annually. The source of this enormous revenue has become the permanent possession of Chile. Bolivia has apparently abandoned the idea of pressing further claims for readjustment of questions growing out of the war, and is endeavoring to make the best of a bad situation by developing the resources of her remaining territory and promoting her industrial interests. In 1905 she celebrated a treaty of commerce and amity with Chile, which provides among other things for the building of a system of railroads through the provinces of Tacna and Arica, thereby giving to Bolivia access to Pacific ports, providing means of communication and facilities for transporting her products to the coast, as well as to ports of entry.
Bolivia also has a large scheme of railway-building of her own, some of the more important branches of which will connect with the lines built by Chile, extending from the coast across the pampa. It was the announcement of this treaty agreement that caused the last vigorous protest by Peru against Chile’s course in the Tacna and Arica question.
During the administration of the phlegmatic but conscientious Domingo Santa Maria, who was president from 1881 to 1886, Chile passed through an important epoch, the pivotal point in her national history. It includes the war with Peru and Bolivia, and an international complication with the Argentine Republic in which war was averted only by a diplomatic handling of the question.
Argentina had an unsigned alliance with Peru and Bolivia, and advantage was taken of Chile’s war engagement to press the question of boundary limits, and also that of the possession of Patagonia and the Straits of Magellan. To meet this emergency and to avoid if possible another war, the government commissioned Jose Manuel Balmaceda, who was then serving as Minister of Foreign Affairs, to go to the Argentine capital and save Chile from impending difficulties. Although coldly received in Buenos Aires, Señor Balmaceda entered upon the task with zeal and determination, unraveled the tangle of international questions, and tied the hands of Argentina by withdrawing Chile’s claim to that portion of Patagonia lying east of the Cordilleras. Previous to that time all of Patagonia was Chilean territory. It was included in the Spanish Vice-royalty inherited by the Republic. This concession precipitated other boundary disputes which were the cause of many years of international contention, almost resulting in war between the two nations on several occasions. It was finally settled by arbitration in May, 1903, when a boundary line, established by a commission appointed by King Edward VII, was accepted and approved by a treaty agreement between the two countries.
On his return from the Argentine, Balmaceda was made Prime Minister and became a most potent political factor and powerful incentive to material progress and development. From armed conflicts and international complications Chile emerged triumphant and successful. Her territorial limits had been extended to include some of the richest mineral deposits on the continent, her national prestige greatly increased, her credit unimpaired and her wealth producing resources multiplied.
From that time Chile made rapid advancement along lines of industrial development and intellectual progress. For the first time in her national existence the exports exceeded her imports; the balance of trade was favorable to her commerce, and the surplus in the national treasury reached 100,000,000 pesos. A remarkable thing about this surplus is that it was accumulated while the government was engaged in building railroads, bridges, public schools and colleges, penal and correctional institutions, constructing highways and providing better means of communication throughout the country. The Congress of that period, 1882-5, was notable in the history of the Republic for its progressive policies, unity of purpose and patriotic support of the government.