Tacna-Arica compromise
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The Tacna Arica compromise was a series of documents that settled the territorial dispute of both Tacna and Arica provinces.
The controversy was a direct legacy of the War of the Pacific (1879-1883), a confrontation that involved Chile against Peru and Bolivia. Chile emerged victorious, and conquered the Peruvian territories of Tarapacá, Tacna and Arica. The defeated Peruvian Government was forced to sign the Treaty of Ancón, in 1883.
In this Treaty, Tarapacá was annexed to Chile and the fate of both Tacna and Arica was to be decided on a plesbicite. This plesbicite was scheduled to become effective in 1893. However, due to different point of views, both countries were not able to agree on the conditions of this plebiscite, which was then solved via an arbitrage of the US. Result was mentioned compromise, that Arica remained Chilean and Tacna was reincorporated into Peruvian territory.
Chile and Peru broke off diplomatic relations in 1901, and several times subsequently found themselves at the brink of war. A deal was finally reached in 1929 in the Treaty of Lima, where Peru retained Tacna and Chile kept Arica. Chile had also to make some concessions such as building a Peruvian-administrated wharf in Arica and a six million dollar indemnization, among others.