ed the fulfilment of the clause relating to
arbitration on disputed points. This was practically an ultimatum, and a
refusal on the part of the Argentine government to comply with the terms
of the 1896 agreement meant a declaration of war by Chile. For a few
days the issue hung in the balance, and then the Argentine government
accepted the provisions made in 1896 for arbitration. The dispute
concerning the Atacama district was submitted to an arbitration
tribunal, consisting of the representative of the United States in
Argentina, assisted by one Argentine and one Chilean commissioner. This
tribunal, after due investigation, gave their decision in April 1899,
and the verdict was accepted unreservedly by both governments. The
dispute regarding the Patagonian territory was submitted to the
arbitration of Great Britain, and a commission--consisting of Lord
Macnaghten, Sir John Ardagh and Sir T.H. Holdich--was appointed in 1899
to hear the case.

The Argentine difficulty was ended, but Chile still had to find a
settlement with Peru and Bolivia. The treaty made with the former
country in 1893 was not ratified, as it was thought to concede too much
to Peru, and the subsequent _ad referendum_ treaty was rejected on
account of Peru claiming that only Peruvians, and not all residents,
should have the right to vote in the plebiscite to be taken by the terms
of the treaty of 1883 for the possession of Tacna and Arica. By the
terms of the armistice of 1883 between Chile and Bolivia, a three years'
notice had to be given by either government wishing to denounce that
agreement. By the protocol of 1895 Chile agreed to give to Bolivia the
port of Arica, or some other suitable position on the seaboard. On these
lines a settlement was proposed. Vitor, a landing-place a little to the
south of Arica, was offered by the Chilean government to Bolivia, but
refused as not complying with the conditions stated in the protocol of
1895; the Bolivians furthermore preferred to wait and see if Arica was
finally ceded by Peru to Chile, and if so to claim the fulfilment of the
terms of the protocol.

After the accession to office of President Errazuriz there was no
stability of any ministry. Political parties in congress were so evenly
balanced and so subdivided into groups that a vote against the ministry
was easy to obtain, and the resignation of the cabinet immediately
followed in accordance with the so-called parliamentary system in vogue
in Chil