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General San Martin, who fought under Bolivar, and had taken the leading part in aiding La Plata to obtain its freedom, felt himself strong enough at the beginning of 1817 to aid O’Higgins to recover Chili from the Spaniards, who had been carrying out wholesale confiscations and persecutions among all who had taken any part in the revolution.

In the morning they were joined by the schooner and brig, and on approaching Valdivia as many men as possible were transferred to the two small vessels. The admiral went on board the schooner, and ordered the O’Higgins to stand out to sea, as he intended she should be used only in case of necessity.

On the 15th of February, 1818, the anniversary of the decisive victory of the "Liberating Army of the Andes," O’Higgins declared the absolute independence of Chili. A vote of the people was taken in a peculiar manner. Two blank books were opened for signatures in every city, the first for independence, the second for those who preferred the rule of Spain.

Lord Cochrane, however, determined that the fleet, furnished at such expense and effort by Chili, should not be wholly wasted, and when he sent his ships in to anchor off the port, he retained the O’Higgins, the Independencia, and the Lautaro, with the professed intention of blockading Callao at a distance.

For the time being Chili was free. The royalists had vanished and the patriots were in full possession. Thirty or more years before, a bold Irishman, bearing the name of O’Higgins, had come to Chili, where he quickly rose in position until he was given the title of Don Ambrosio, and attained successively the ranks of field-marshal of the royal army, baron, marquis, and finally viceroy of Peru.

For fifteen days these remained, and then it was found that the first books were filled with names, while the second had not a single name. This vote O’Higgins declared settled the question of Chilian freedom. The Spaniards did not think so, for Abascal, the energetic viceroy of Peru, was taking vigorous steps to win Chili back for the crown.

Within fifteen minutes the whole army was in full flight. The leaders bravely sought to stop the demoralized troops, but in vain, O’Higgins, though severely wounded, throwing himself before them without effect. Nothing could check them, and the defeat became in large measure a total rout. When news of this disaster reached Santiago utter consternation prevailed.

The fall of all the western forts practically entailed that of Valdivia, for while preparations were being made to attack the eastern forts, the O’Higgins appeared off the mouth of the river, and the Spaniards, seeing this reinforcement to their foes, at once abandoned the remaining forts and the town, and retreated into the interior.

The Carreras submitted without trying to strike another blow, and O’Higgins, with the handful of survivors from Rancagua, and some hundreds of fugitives, crossed the Andes into La Plata, where they remained for two and a half years in exile.

It consisted of the O’Higgins, San Martin, Lautaro, Independencia, Galvarino, Araucano, and Puyrredon, mounting in all two hundred and twenty guns. There were also two old merchant ships to be used as fire-vessels. On the 29th they entered the Callao roads. The next day Lord Cochrane sent in a boat with a flag of truce, and challenged the Viceroy to come out for a fair fight.