Chile - Argentina Solo Naval Campaign 1899: The Background

Source: In Mahan's Wake (Admiralty Trilogy)

I've been working on a background for the pre-dreadnought solo naval campaign between Chile and Argentina c1899. Here's the initial outline of events leading to the first scenario. 

In 1881 the dispute between Argentina and Chile over the border in Patagonia is resolved by treaty, with the Argentinian government reluctantly conceding that the islands in the Beagle Channel - Picton, Nueva and Lennox - are Chilean territory. This followed a crisis in 1878 in which both sides boarded and seized merchant shipping in the Beagle Channel, which almost led to hostilities before cooler heads prevailed.

President Jorge Montt

In 1891, the Chilean Civil War has led to a significant rise in Chilean naval power, with the navy supporting the victorious Congressional faction. As a consequence, Admiral Jorge Montt is elected as President in 1891, initiating a policy of military reorganization and modernization, with significant investment in naval capability. His aim is to normalize relations with Argentina and to deter foreign interference in Chilean affairs, particularly by the United States whose naval capability has been sorely tested by the rise in Chilean military strength.

USS Baltimore

The Argentinian government, aware of the United States concerns about Chilean naval power and frustrated by the terms of the 1881 Treaty, conspires to undermine the Chilean threat during the Baltimore Crisis of 1891. A secret Argentinian plan to exchange the province of Salta for the establishment of a US naval base, in exchange for military intervention and Argentinian control of Southern Chile, is rejected by President Harrison. However, the US administration is deeply concerned by the growing power of Chile and by the influence of foreign powers with pro-Chilean sympathies in the region, especially the perfidious British.

President Vicente Reyes

In 1896, a close run presidential election in Chile leads to the appointment of right wing President Vicente Reyes Palazuelos of the Liberal Party and the defeat by a very narrow margin of Frederico Echaurren, whose policy of rapprochement with Argentina is rejected. The former incumbent, Admiral Reyes, is forced into early retirement and is not appointed as commander in chief of the navy. In his place, a small cabal of Chilean naval officers led by the swiftly promoted Rear Admiral Francisco Nef push forward an expansionist agenda, despite protestations by the Chilean army and, in particular, Major General Emilio Körner, Chief of the General Staff.

Rear Admiral Nef

In 1897, tensions between Argentina and Chile over navigation rights in the Beagle Channel and Chilean control of the islands in the straits, boil over despite pressure by Great Britain and the United States to negotiate a peaceful resolution to the dispute. A series of unfortunate incidents, involving both sides boarding and impounding merchant shipping, lead to political demands for military escalation in Chile and for a naval response by Argentina. The rapid expansion of both nations' strength in a so-called naval arms race adds fuel to the fire, neither country willing to back down over their territorial claims.

By 1899, the situation deteriorates further, when a Chilean merchant ship, the SS Del Rayo, is forced aground on Gable Island after a pursuit by the Argentinian torpedo cruiser, ARA Patria, which was patrolling the Beagle Channel to enforce Argentinian navigation rights. The crew of the Del Rayo are rescued by the Chilean cruiser, Presidente Pinto, and report that they were fired upon by the ARA Patria as they attempted to abandon ship, with a number of crew wounded and one killed by shell splinters. 

This incident, the so-called 'Del Rayo Massacre', is the spark that sets off the conflict (Scenario 1).