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Rh Mexico the Royalist arms were triumphant; the rising star of Bolivar at Caracas was about to suffer eclipse; the revolutions of Quito, Venezuela, and New Granada were crushed; Lima, still the great centre of reaction, prepared yet another expedition for the conquest of Chile; only in the united provinces of the River Plate did the revolution still hold its ground. In these circumstances Hillyar, commodore of the British squadron of the Pacific, offered his mediation to the Viceroy of Peru for the pacification of Chile. His offer was accepted, and he reached Santiago just after the successful defence of Quecheraguas. Government appointed O'Higgins and Mackenna to conduct the negotiation. It was accordingly arranged on the 3rd May that Chile should return to the state of the year 1811, under the rule of a provisional Junta subject to the Regency of Spain; that the Royalist troops should withdraw from Chile within one month; that Chile should send deputies to the Peninsula to settle all disputes, and should do what she could to help the cause of Spain. This arrangement, which is known as the Treaty of Lircay, was badly received in the Royalist camp, and also by public opinion in Chile, and resulted in nothing more than a truce.

It is a question whether these terms were agreed upon in good faith by either party. So far as Gainza was concerned, they saved him from certain defeat.

Don Francisco Antonio Pinto, diplomatic agent of Chile in London, was instructed to repair to Madrid in representation of her interests, but the Royalist troops were not withdrawn, and the Government remained in the hands of Lastra as Supreme Director. Chile was resolved upon liberty at any cost, and public opinion, which had forced on the treaty, was now equally pronounced against it.

The alliance between Chile and the United Provinces was de facto at an end, and the Argentine auxiliaries were withdrawn from the army to Santiago. On the 22nd July a mutiny in the barracks restored the Carreras to power. They proclaimed themselves the saviours of the country.