Peru, country, South America: The Late Nineteenth Century

The Late Nineteenth Century

A republican constitution was promulgated in 1860 and remained in effect until 1920. After Castilla, Peruvian politics again were in turmoil, due to corruption, growing foreign indebtedness, and an attempt by Spain to regain Peru. Claiming that Peru had not met its financial obligations, Spain seized the guano-rich Chincha Islands in 1863. Aided by Chile, Bolivia, and Ecuador, Peru defeated the Spanish at Callao in 1866; a truce was signed in 1871 and in 1879 Spain recognized Peru's independence. Meanwhile, President José Balta (1868–72) undertook a costly program of public works, including the building of Peru's first railroad, between Mollendo and Arequipa. Foreign debt had risen dramatically by the time the country's first civilian president, Manuel Pardo (1872–76), inaugurated a series of economic reforms.

In 1873, Peru signed a secret defensive alliance with Bolivia, which led to war with Chile (see Pacific, War of the) in 1879. Chile badly defeated the allies and by the Treaty of Ancón (1883) Peru had to yield the province of Tarapacá and also to surrender the other southern coastal provinces of Tacna and Arica to Chilean administration for a period of 10 years, when a plebiscite was to be held. There ensued the Tacna-Arica Controversy, which was not resolved until 1929, and tensions over the border have periodically flared since. Peru emerged nearly bankrupt from the war. President A. A. Cáceres (1886–90) created a syndicate of foreign capitalists to manage the guano deposits and the railroads, and foreign influence and holdings in Peru grew stronger.

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