On his death, Cayancura was elevated to the dignity of toqui. In his time, the Araucanians besieged the fort of Arauco, and being defeated, the toqui resigned his command to Nangoniel his son, who was killed in attacking another fortress.
Cadaguela was then unanimously proclaimed general, and in his time, the English under Sir Thomas Candish landed on the coast of Chili, and endeavoured to enter into negociations with the natives; but being attacked by Molina, the corregidor of Santiago, they were forced to reimbark, after losing several men.
Several chiefs succeeded Cadaguela, each of whom were engaged in desperate actions with the Spaniards. In 1593, Don Martin Loyola, nephew of the celebrated founder of the order of Jesuits, having married the daughter of Sayri Tupac, the last Inca of Peru, was appointed governor of Chili; he was slain five years after his arrival, on the 22d of November 1598, by Paillamachu the toqui, in whose country he had imprudently ventured with too small an escort. On this event which had been previously planned, the whole Araucanian country, with the Cunches and Huilliches, their allies, suddenly rose, and put to death every Spaniard who had the misfortune to be without the forts; the towns of Osorno, Valdivia, Villarica, Imperial, Canete, Angol, and Arauco, were all attacked, and Conception and Chillan were burnt.
Amid all these misfortunes, the Dutch landed in the Chiloe Islands, plundered Chiloe, and put the Spanish garrison to the sword; but landing in an island where the Araucanians were posted, these people attacked them and killed twenty-three of their men, mistaking them for Spaniards.
All the Spanish cities above-named, were also taken by Paillamachu the toqui, and the Spaniards were completely expelled from the territories of the Araucanian confederacy.
Luis Valdivia, a Jesuit, who had been employed in converting the Chilese, finding it impracticable to prevail on the Araucanians to listen to him, went to Spain, where he instigated the emperor to take measures to procure a peace; and returning to Chili, in 1612, this zealous missionary nearly effected the object he had taken so much trouble about, and in a short time peace was about to be proclaimed between the Spaniards and the Indians, when an unforeseen circumstance occurred, which rendered the war more active than before.
Battle succeeded battle, with no extraordinary result on either side, till the Dutch made a second attempt on the islands, in which they were repulsed as before, the natives again mistaking them for Spaniards.
Some wars took place after this, till the arrival of Don Francisco de Zuniga, Marquess of Baydes, who assumed the government in 1640. By his exertions, the preliminaries of a peace were arranged and finally settled on the 6th of January 1641, between Lincopichion, the Chilese general, and the Marquess, by which the two nations mutually agreed to suspend all hostilities, and the Araucanians, on their part, engaged to prevent any foreign power whatever from landing in their territories. In 1643, the Dutch made a third and last attempt to colonize this country, by building two forts, and taking possession of Valdivia; but being deprived of provisions by the Cunches, and hearing that a powerful army of Spaniards and Araucanians were marching against them, they evacuated Chili.