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Nearly three hundred of these immediately surrendered, and Major Beauchef having captured the whole of the arms and baggage returned in triumph to Valdivia. On the 27th of February, I arrived at Valparaiso, in the Montezuma, amidst the most lively demonstrations of enthusiasm on the part of the populace, and warm expressions of gratitude from the Supreme Director.

Besides these, the country of the Cunches, who are in alliance with the Araucanians, extends along the coast between Valdivia and the archipelago of Chiloe; and the Huilliches, likewise allies of the Araucanians, occupy all the plains to the eastward, between the Cunches and the main ridge of the Andes.

Pedro de Valdivia was sent on his memorable expedition to Chili; and to his own brother Gonzalo the governor assigned the territory of Quito, with instructions to explore the unknown country towards the east, where, as report said, grew the cinnamon.

It may be concluded, however, that, owing to the caution, or cowardice rather of the Araucanian toqui, these actions were so ill conducted and so inconclusive, as to give very little interruption to Valdivia in his triumphant progress through these provinces, between the Biobio and Callacalla, or from Conception to Valdivia.

Since that period coal has been found near Talcahuano and at Valdivia, on the coast of Chili; on the island of Chiloe, and on that of San Lorenzo, opposite to Lima; in the valley of Tambo, near Islay; at Guacho, and even further down on the coast of Guayaquil. Mr Scarlett quotes a letter from the Earl of Dundonald.

On purpose to secure the punctual execution of these orders, the king offered to exalt Valdivia to the episcopal dignity, and to appoint him governor of Chili. He refused both of these high offers, and only stipulated for the restoration of Alonzo Rivera to the government, whose views were conformable with his own, and who had been exiled to Tucuman as formerly mentioned.

When they were compelled by the voice of the people to declare publicly that "the capture of Valdivia was the happy result of an admirably-arranged plan and of the most daring execution," they refused to award either to him or to his comrades any other recompense than was contained in the verbal compliment; and, on his refusing to give up his prizes until the seamen had been paid their arrears of wages, he was threatened with prosecution for detention of the national property.

This name, from events which could not then have been in the consideration of Valdivia, has become strictly applicable to its present situation, as its ruins are actually situated on the southern confines of the Spanish settlements in Chili.

On my departure, the Spaniards, elated by their success at Chiloe, combined with those who had been driven from Valdivia, in an attempt to recover their lost possessions, but Major Beauchef, having timely intelligence of their intention, set out to meet them.

The thirst of riches was the moving spring of this expedition, and the disappointment of their hopes the cause of its abandonment. Second Expedition into Chili, under Pedro de Valdivia, to the commencement of the War between the Spaniards and Araucanians.