"Government palace - palacio de la moneda " a Santiago Travel Page by chancay

When the first Spanish arrived, Quechua tribes inhabited the northern region, and Araucanian tribes inhabited the central region and the northern part of the sothern region. The Incas were in control of the northern area and part of central Chile. Warlike Araucanian tribes, who held the Incas back, dominated much of the rest of the country . The first Spanish settlements were established in the mid-sixteenth century: Santiago in 1541 and Concepcion in 1550. Spanish settlers, mainly from Andalucia, were attracted to central Chile because of the pleasant climate and fertile soil. The settlers had to face repeated assults from the Araucanians. The on-and-off war with the Indian aborigines continued into the second half of the nineteenth century.
By the mid-seventeenth century, the population of the Spanish settlements and their surroundings numbered approximately 100,000. This population grew to about 500,000 by mid-eighteenth century and to one million by 1830. Those with European blood were concentrated in central Chile, between Santiago and Concepcion; few settled in the northern and southern regions. This pattern of dispersion began to change only in the second half of the nineteenth century, with the rapid growth of mining activities and the inmigration of non-Iberaian Europeans.

Under Spanish colonial rule, northern and central Chile were part of the Viceroyalty of Peru. The south remained under the control of the Araucanians almost until the nineteenth century. Independence was first declared in 1810. At that time, central Chile was to a large extend controlled by a small, upper class of Creoles (locally born Europeans), most of them owned large estates. A period of internal instability and striffe followed, which resulted in the restoration of Spanish rule in 1814. Combined Argentinian and Chilean forces under Jose de San Martin and Bernardo O'Higgins, who crossed the Andes from Argentina, managed to defeat and drive out the Spanish army and restore Chile's independence (1818). O'Higgins became Chile's first president.

Chile defeated Bolivia and Peru in a war (1879-1883) for the control of the Atacama Desert and its rich mineral deposits. In the course of this war, Chilean troops occupied Lima. Chile won the disputed territory. Bolivia lost its outlet to the open sea and Peru the Tarapaca district.

A multiparty, parliamentary regime came into being in 1891, however, the interests of the upper class, comprised mainly of owners of large states and wealthy business people, continued to predominate. After a short period of military rule (1924-1925), followed by the reinstatement of the democratically elected president Arturo Alessandri, a new, more progressive, constitution came in force (1925). Left-wing parties, including communist, gained much influence from 1930s onward and played an important role in elections of several presidents. However, the right-wing parties ramained in actual control.

A presidential candidate of the left-wing parties, Salvador Allende, won the elections in 1970. Upon ussuming office, he nationalized the mines, industries, and public services. Allende was deposed and died in a military coup in September 1973, which was followed by 16 years of military dictatorship by General Augusto Pinochet. Democratic elections were held in 1989. Democracy was restored in 1990 with the asumption of the presidency by Patricio Alwin Azocar, following free elections.