26o A HISTORY OF CHILE the Argentine legislature established a line of sailing vessels between Buenos Ayres and the coasts of Pata- gonia, which were to touch at the settlements on the Chubet river and those south of the river Santa Cruz, and granted ten square leagues of territory to the com- pany. The Chilean niinister objected, and claimed that his government would not consent that the disputed terri- tory south of the Santa Cruz should be invaded. This called forth an elaborate presentation of the matter in the reply made by the Argentine minister of foreign affairs, and the dispute seemed to be as far as ever from an amicable settlement. As a matter of fact, the Argentines had tacitly acquiesced in Chile's claims for so many 3-ears that some of their own papers now even admitted that they had forfeited whatever original rights they may have had. bj' their silence and previous unconcern. The matter was not finally arranged until October 23rd, 1881. At the same time, the question of the disputed boundary between Chile and Bolivia was revived by the discovery of the rich Caracoles mines, in 1870, and to this the president referred in his opening address to congress in 1872. The question was for a long time pending in a ver}' troublesome way. In February, 1873, Peru and Bolivia entered into a secret treaty, guaran- teeing to- each other mutual protection and the integ- rity of their respective territories. The treaty was, in effect, an alliance against Chile. It was intended to be a secret treaty, but the Chileans soon learned of it, and immediately began to take measures to protect their interests in the north. A treaty with Bolivia had been adopted in 1866, which we shall hereafter notice more particularly. In November, 1872, Senor Frias, an Argentine, was appointed as a sort of umpire in the
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