The capital is Estancia del Rey, or St. Luis de Gonzaga, lately built near the Biobio in 36° 45', south latitude. It has a parish church, and a college erected by the Jesuits. The other places of Huilquilemu, are mostly small villages, and it contains the four frontier forts, Yumbel, Tucapel, Santa Barbara and Puren.
The Spaniards possess no other part of Chili on the continent, in proceeding to the south of the Biobio river, till the 39° 58' of south latitude, where they hold the city of Valdivia and the country in its vicinity, but as their tenure is by no means certain without the walls of the town, it cannot be called a province.
Valdivia is situated on the banks of the river of the same name, in south latitude 40° 5', west longitude 80° 5', at three leagues distance from the sea.
This city was founded in 1551, by Pedro de Valdivia, who gave it his name, and amassed much gold in its vicinity, which tempted many Europeans to settle in it, so that it soon became a place of importance.
In 1599, it was surprised by the toqui Paillamachu, who entered it at night with 4000 men, slew the greater part of the garrison consisting of 800 soldiers, burnt the town, and carried the inhabitants into captivity. It was, however, soon rebuilt more strongly, and resisted all the attacks of the Araucanians, but was taken by the Dutch in 1640, who abandoned it soon after.
On the arrival of the Spanish fleet which had been fitted out to attack the Dutch garrison, they found Valdivia deserted, and therefore set immediately about adding to its fortifications, erecting four new forts on both sides of the river, towards the sea, and one on the north on the land front.
These precautions have prevented it from falling into the hands of the natives or foreigners, but it has been twice nearly destroyed by fire.
This town contains a college built by the Jesuits, several convents, a parochial church, and a royal hospital; and is governed by a military officer, nominated from Spain, who has a strong body of troops under his orders. The fortress is provisioned, by sea, from the ports of Chili, and the troops are paid by the treasury of Peru.
All the rivers in the vicinity of Valdivia contain much gold dust in their sands, and the plains furnish fine timber.
Its harbour is formed by a beautiful bay made by the river, which is navigable for large vessels a considerable distance from its mouth. The island of Manzera, lying in the entrance of the stream, divides it into two channels, which are bordered by steep mountains and strongly fortified.