Chile's borders are a matter of contention…

Chile's borders are a matter of contention throughout the nineteenth century.

The War of the Pacific begins on the heels of an international economic recession that focuses attention on resources in outlying zones.

Under an 1866 treaty, Chile and Bolivia had divided the disputed area encompassing the Atacama Desert at 24° south latitude (located just south of the port of Antofagasta) in the understanding that the nationals of both nations can freely exploit mineral deposits in the region.

Both nations, however, were to share equally all the revenue generated by mining activities in the region, but Bolivia had soon repudiated the treaty, and its subsequent levying of taxes on a Chilean company operating in the area had led to an arms race between Chile and its northern neighbors of Bolivia and Peru.