San Carlos is on the Bahia del Rey, and was built In 1767, on account of the difficulties attending the entrance to Chaco. It is in 41° 57' south latitude, and 73° 58' west longitude, and is the most populous and flourishing town in the province, containing 1100 inhabitants. The harbour is good, but subject to tremendous squalls and hurricanes; and the town is fortified, and has a regular garrison; and from the advantages of its harbour, the governor and council always reside at San Carlos.
The other islands have each one settlement and a missionary church on them, excepting Quinchuan, which has six; Lemui and Llachi, each four, and Calbuco three, but none of any material consequence.
South of the Islands of Chiloe is the Archipelago of Guaytecas and Chonos, lying in a large gulf or inlet of the continent, from 44° 20' to 45° 46' south latitude; they are comprehended by the Spaniards within the province of Chiloe, but are uninhabited, being a mere mass of granite rocks, covered with thick forests.
Some of these, namely, Tequehuen, Ayaupa, Menchuan and Yquilao, the Indians of Chiloe visit periodically, and put cows in them, for the sake of the pasture, which is luxuriant.
Having now concluded the description of that part of Chili inhabited by Spaniards, and their descendants, we shall give a slight sketch of the country, reaching from the Biobio river to Fort Maullin; and which, on account of its being the territory of the Araucanians and of nations in confederacy and identified with those people, in manners and language, it may be proper to give the general name of Araucania.
[ARAUCANIA, or INDIAN CHILI,]
Extends from the river Biobio in 36° to the south of Chiloe, in the 45° of south latitude, exceeding 420 miles in breadth, and also occupying from the 33° to the 45° south latitude, both the central and eastern ridges of the Andes. The nations who inhabit this extensive tract are the Araucanians, possessing the country between the Biobio and the Valdivia rivers, the Pacific and the Andes; the Puelches, who inhabit the western flanks of the Cordillera and its central valleys; and still farther north, on the Andes, adjoining Cuyo, the Pehuenches and the Chiquillanes, their territory lying as far north as the thirty-third degree of south latitude, or opposite to Santiago, the capital of Chili, and extending indefinitely to the east.
South of the Valdivia river, and as far as the forty-fifth degree, are the Cunches on the sea coast, and the Huilliches in the plains, near the western declivity of the Andes, which mountains are also occupied in this quarter by the Puelches.
All this country, to the north of the archipelago of Chiloe, is fertile and pleasant, consisting mostly of wide plains, agreeably diversified with mountains. That part which lies on the Andes possesses some beautiful valleys, but as the chain attains a great elevation the climate is cold. In these valleys, towards the east, salt and sulphur is plentiful; and the precious metals are by no means rare. Near Valdivia, immense quantities of gold were formerly found in the sands of the rivers and in alluvious grounds, but they are not worked at present, as the Spaniards are kept from those places by the natives.