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When the general terror and dismay had a little subsided, the magistrates proceeded to open the sealed instructions which had been left with them by Valdivia, when he departed on his late fatal expedition. In these he named Alderte, Aguirre, and Villagran successively to the vacant government in case of his own decease.
Alderte being gone to Europe, and Aguirre absent on his expedition into the distant province of Cujo, the command devolved on Villagran. After such preparations as appeared necessary under the present emergency, Villagran crossed the Biobio with a considerable army of Spaniards and Promaucian auxiliaries, intending to march for Arauco in the first place.
At this time he sent Alderte into Spain, with a large sum of money, and a particular relation of his transactions and conquests; and commissioned him to employ his utmost exertions to obtain for him the perpetual government of the country which he had conquered, together with the title of Marquis of Aranco.
He likewise dispatched Alderte, with a detachment of sixty men, with orders to establish a settlement on the shore of a lake called Lauquen, to which he gave the name of Villarica, or the rich city, owing to the great quantity of gold that was procured in the environs.
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