| Mutual Benefits Treaty | |
|---|---|
 Except for the 24°S boundary, none of the borders was officially set in 1866. The black line is the 1929 border. | |
| Type | Boundary and economic |
| Signed | October 8, 1866 (1866-10-08) |
| Location | Santiago, Chile |
| Negotiators |
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| Signatories |
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| Parties | |
| Language | Spanish |
| Full text | |
 Boundary Treaty between Bolivia and Chile of 1866 atWikisource | |
TheBoundary Treaty of 1866 betweenChile andBolivia, also called theMutual Benefits Treaty, was signed inSantiago de Chile on August 10, 1866, by the Chilean Foreign Affairs MinisterÁlvaro Covarrubias and the Bolivian Plenipotentiary in Santiago Juan R. Muñoz Cabrera. It drew, for the first time, the border between both countries at the 24° South parallel from the Pacific Ocean to the eastern border of Chile and defined a zone of bipartite tax collection, the "Mutual Benefits zone", and tax preferences for articles from Bolivia and Chile.
Despite increasing border tensions since the 1840s, both countries fought together against Spain in theChincha Islands War (1864–65) and resolved the question under the Governments ofMariano Melgarejo in Bolivia andJosé Joaquín Pérez in Chile. But before long, both countries were discontented with it, and Peru and Bolivia signed asecret treaty against Chile in 1873. The Lindsay-Corral protocol, thought to clarify the treaty, was approved by Chile but never by Bolivia.
In 1874, a new boundary treaty was signed, which was violated by Bolivia in 1878. In 1879 began theWar of the Pacific.
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After the Spanish American Wars of Independence, the new Latin American republics adopted as a common juridical principle of frontier demarcation the administrative limits existing at the moment of separation from Spain. This was termed in[clarification needed]Uti possidetis of 1810, a formula devised mainly to prevent European nations from setting foot in America, on the plea that between one heritage and another there were vacant regions susceptible of being title ofres nullius.
In particular, remote regions, sparsely populated or uninhabited areas, inhospitable climate, and sparse local vegetation caused a lack of geographical knowledge and hence administrative determination of the borders. However, political unrest also led to changes, like the Province ofTarija in colonial Argentina, which after independence wanted to come under Bolivian administration. On the other hand, European powers and the United States never recognized the principle ofuti possidetis 1810, such as in theFalkland Islands. Since uncertainty characterized the demarcation of frontiers according to theuti possidetis 1810, several long-running border conflicts arose in America after independence throughout the 19th century.
Bolivia had claimed territories down to 26° South since its independence. In 1842, the Chilean government ofManuel Bulnes declared the 23° Southparallel of latitude (nearMejillones) as the northern frontier of Chile it was then impossible to foresee the enormous importance of guano and nitrate.
From that day onward, conflicts of jurisdiction between Chilea and Bolivia were frequent. The Chilean shipRumenia was carried to Cobija, the Bolivian port, and the BolivianSportsman toCaldera, Chile. Between 1842 and 1862, there were unsuccessful attempts at conciliation by both governments.
The situation could not continue indefinitely. Every day, the affair became more acute sonce more interest was being taken in guano due to the increase in the revenue of Peru due to the deposits on the Chincha islands. The controversy became critical on 5 June 1863 as the Bolivian Congress secretly empowered the executive to declare war on Chile.
An unexpected situation arose that modified the political relations of the Pacific countries: the war declared bySpain on Peru and Spain's reassertion of its claims to the Chincha islands. The Pacific countries became alarmed, and Chile, Bolivia, and Ecuador made common cause with Peru. Previous differences were considered as being of secondary importance, and Bolivia and Chile sought to end the border conflict. Interrupted diplomatic relations were resumed, and on 10 August 1866, the Boundary Treaty was signed in Santiago.
The treaty stipulated in seven articles:
Regarding the Treaty of Mutual Benefits,Ronald Bruce St. John stated:[1]
As a matter of fact, the treaty settled nothing, left everything pending, and opened the door to difficulties greater than those that it had attempted to settle.
On 5 December 1872, after difficult talks, the Bolivian and Chilean negotiators, Corral and Lindsay agreed to a clarification of the treaty of 1866. The Lindsay-Corral Protocol gave Chile the right to appoint customs officers to work alongside their Bolivian counterparts in the condominium zone; stipulated that tax rates could not be modified unilaterally; confirmed Bolivian acceptance of nitrates and borax as products included in the terms of the 1866 treaty; agreed that Bolivia would make a separate account of the amount to be received for taxes not derived from the common zone; and stated that the eastern limits of the common zone would be fixed by experts of both countries and, in case of disagreement, by a third nominated by the Emperor of Brazil. This Protocol was approved by Chile in January 1873.
A new grievance arose in August 1872 asQuintin Quevedo, a Bolivian general and a follower ofMariano Melgarejo who had been toppled as president in 1871, embarked on an expedition from Valparaiso against the Bolivian government without any effective action by the Chilean authorities despite a warning by the Peruvian and the Bolivian consulates of weapons and men on board the ships: theMaria Luisa and thenPaquete de Los Vilos.
Peru, which then enjoyed naval supremacy in the South Pacific, responded with a naval demonstration in Mejillones by sending theHuascar and theChalaco to there. Peruvian Minister of Foreign Affairs Jose de la Riva Agüero told the Chilean government that Peru would not view with indifference the occupation of Bolivian territory by foreign forces.
In October 1872, the Bolivian Assembly authorized the executive to sign a treaty of alliance with Peru without the necessity for further legislative consultation. That finally became theSecret treaty of alliance between Peru and Bolivia of 1873, signed on February 6, 1873, in Lima.
The Peruvian government saw the Lindsay-Corral Protocol as an increase in the regional influence of Chile and urged Bolivia to reject it, and on May 19, 1873, the Bolivian Assembly postponed approval to 1874. The Assembly never approved or refused the treaty.
In 1874, representatives of Bolivia and Chile reopened talks, which concluded with the Treaty of Sucre or Boundary Treaty between Bolivia and Chile of 1874 (see English version inBoundary Treaty between Bolivia and Chile of 1874). The pact kept 24th degrees South as the boundary between Bolivia and Chile, and Chile relinquished its former rights of condominium in return for no future nitrate tax increases over Chilean companies.
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