War of the Pacific

War of the Pacific, military conflict (1879-83) between Chile, on the one hand, and Bolivia and Peru, on the other, over the nitrate-rich Atacama Region. A treaty of 1874, while recognizing Bolivia's control over the area, exempted Chilean nitrate companies from paying new taxes for 25 years. When the Bolivian president Hilarión Daza (1840-94) demanded a new tax on the companies in 1878, Chile occupied (February 1879) the port of Antofagasta. Bolivia declared war and was joined by Peru, a partner in a secret alliance. The Chilean navy won a decisive victory at Point Angamos in 1879, and its army followed with the capture of Tacna and Arica in 1880. Once Chile had occupied all of the Bolivian and Peruvian nitrate provinces, Bolivia withdrew from the war. In January 1881, Chile occupied Lima, forcing the Peruvian government into the highlands. After two years of occupation, Peru accepted Chile's peace terms in the Treaty of Ancón (October 20, 1883), ceding the province of Tarapacá to Chile along with the provinces of Tacna and Arica on condition that a plebiscite be held. Under a treaty signed in 1884, Bolivia ceded its Atacama Province to Chile and became a landlocked nation. See also Tacna-Arica Dispute.