Chile-Bolivia Relations: A Historical Rift Explained

Chile and Bolivia have had a strained relationship since gaining independence from Spain in the 19th century. The dispute between the two countries centres on the Atacama border, with both countries claiming access to the sea. Bolivia has never given up on regaining its access to the sea, and the loss of the Litoral province remains a traumatic event for the country. Bolivia still maintains a navy and celebrates the Day of the Sea annually. The dispute has led to several conflicts, including the War of the Pacific (1879-1884), which resulted in Bolivia losing 120,000 sq km of land and its coastline to Chile, becoming a landlocked country.

The War of the Pacific (1879-1884)

In 1878, Bolivia's decision to increase taxes on the Chilean mining company, Compañía de Salitres y Ferrocarril de Antofagasta (CSFA), violated the Boundary Treaty of 1874, which prohibited tax increases for mining. Chile responded by sending a warship to the area in December 1878. Bolivia seized and auctioned the company on 14 February 1879. Chile, in turn, threatened that such action would nullify the border treaty.

In April 1879, Chile declared war on Bolivia and its ally, Peru, starting the War of the Pacific. Chile sought to gain control of the coastal waters to support its invasion of landlocked Bolivia. Chile's naval victories at Iquique in May 1879 and Angamos in October 1879 gave it command of the coastal waters. This enabled Chile to invade and occupy the Peruvian province of Tarapacá in November 1879 and attack Tacna and Arica in early 1880.

In December 1880, Chile renewed its offensive by launching a seaborne attack on Peru. Chilean forces defeated the Peruvians at the Battles of Chorrillos and Miraflores and occupied the capital, Lima, in January 1881. The Peruvian government was forced to retreat and wage a guerrilla war for two years.

The war ended in 1883 with the Treaty of Ancón, which ceded the province of Tarapacá to Chile and allowed it to occupy Tacna and Arica for ten years, after which a plebiscite would determine their sovereignty. Bolivia, having lost its only coastal region, became landlocked.

Bolivia signed a truce in 1884, giving control of its entire coast, the province of Antofagasta, and its valuable natural resources to Chile. This arrangement was made permanent with the Treaty of Peace and Friendship in 1904.

Atacama border dispute

The Atacama border dispute was a conflict between Bolivia and Chile in the 19th century, which ultimately led to the transfer of the Bolivian coast to Chile. The dispute arose due to the different interpretations of the territory inherited from the Spanish Empire.

When Simón Bolívar established Bolivia as a nation in 1825, he claimed access to the sea, disregarding Chile's overlapping claims. The dispute centred around the Atacama corridor, a part of the Atacama Desert which now forms northern Chile. The geography of the area was a significant factor in the dispute—the mountains surrounding the Atacama Desert make it one of the driest places on Earth, with rain falling only 2 to 4 times a century.

In 1866, the two countries negotiated a Boundary Treaty, establishing the 24th parallel south as their boundary and allowing both countries to share tax revenue on mineral exports from the territory between the 23rd and 25th parallels. However, this treaty did not resolve the dispute, and in 1873, Bolivia signed a secret Treaty of Mutual Defense with Peru.

The discovery of valuable natural resources in the Atacama region, including nitrates, silver, and copper, further escalated tensions. Both Bolivia and Chile claimed sovereignty over the territory, and foreign powers such as Britain, Spain, and the United States also had strategic and economic interests in the area.

In 1878, a dispute arose between Bolivia and the Antofagasta Nitrate & Railway Company over tax rates, leading to the seizure and auction of the company's property by the Bolivian government. Chile responded by sending a warship to the area and threatening to nullify the border treaty. On April 1879, Chile declared war on Bolivia and Peru, starting the War of the Pacific.

The War of the Pacific (1879-1883) ended with Chile's victory and the annexation of the entire Bolivian coast, leaving Bolivia landlocked. The Treaty of Peace and Friendship, signed in 1904, made this arrangement permanent. Bolivia still claims sovereign access to the Pacific Ocean, and the dispute is considered ongoing by some.

Bolivia's demand for access to the Pacific coast

The War of the Pacific was sparked by a dispute over taxation of the nitrate industry, a major source of income for Chileans working in what was then Bolivian territory. Chile's annexation of Bolivian land resulted in a significant territorial loss for Bolivia, with an area of approximately 120,000 square kilometres being ceded to Chile, including 400 kilometres of coastline. This loss of coastal access has negatively impacted Bolivia's ability to engage in maritime trade and increased its dependence on neighbouring countries for export and import activities.

Bolivia has consistently sought to regain access to the Pacific coast, arguing that it is crucial for their economic growth and national pride. They have demanded sovereign access to the sea, refusing to settle for mere commercial access through Chilean ports. In 1904, a peace treaty was signed between the two countries, in which Chile agreed to compensate Bolivia for its loss of land and granted Bolivia access to Chilean ports, as well as agreeing to build a railway from the port of Arica to Bolivia's city of La Paz. However, Bolivia has continued to pursue full sovereignty over the coastline.

The issue of coastal access has been a central focus for Bolivian politics, with President Evo Morales making it a key issue for his administration. In 2013, Bolivia took Chile to the International Court of Justice (ICJ), demanding that Chile be obligated to negotiate and grant Bolivia sovereign access to the sea. However, in 2018, the ICJ ruled against Bolivia, stating that Chile was not required to negotiate or surrender its territory. Despite this setback, Bolivia continues to pursue its dream of restoring its access to the Pacific coast, with President Morales declaring that they "will never give up" on this endeavour.

The conflict has had a significant impact on the relationship between the two countries, with diplomatic relations being strained and full diplomatic ties being severed multiple times throughout history. While there have been moments of rapprochement and attempts at negotiation, the issue of coastal access remains unresolved, and it continues to be a source of tension and disagreement between Bolivia and Chile.

The Silala River dispute

The dispute arose in 1999 when Bolivia claimed exclusive rights to the river, arguing that the river has been artificially diverted to Chile through canals constructed in the early 1900s and would not flow to Chile otherwise. Bolivia contends that the Silala River system is not a transboundary watercourse and that it holds exclusive rights to its utilisation. Furthermore, Bolivia asserts that Chile must pay compensation for its past utilisation of the river.

On the other hand, Chile argues that the Silala River is an international watercourse, flowing naturally towards Chilean territory due to the inclination of the terrain. As such, Chile claims the right to utilise the river's waters under customary international law and asserts that Bolivia has a duty to cooperate and provide timely information on planned measures regarding the river.

The dispute was brought before the International Court of Justice (ICJ), with Chile instituting proceedings against Bolivia in 2016. The lawsuit is still ongoing, with the ICJ assessing the case and expected to deliver a judgment on the merits, including counter-claims by Bolivia.

The outcome of the legal case has significant implications for future Chile-Bolivian relations and may escalate antagonisms in the Andean region. It also highlights the challenges of managing shared water resources and allocating economic and political interests in a context of water scarcity and climate crisis.

Territorial negotiations failure

Chile and Bolivia's territorial negotiations have failed due to the two countries' dispute over territory, specifically the Atacama border dispute. This disagreement centres on whether Bolivia should have access to the sea, with Bolivia claiming access to the sea at the port of Cobija, and Chile disagreeing.

Bolivia has been demanding access to the Pacific coast since it lost its coastline to Chile during the War of the Pacific (1879-1884). Bolivia became landlocked after the war, which was fought over control of natural resources in the Atacama Desert region. Chilean and British companies had previously refused to pay new taxes imposed by Bolivia on the exportation of natural resources, including guano, sodium nitrate, and copper. In response, Bolivia moved to nationalise their mines, prompting Chile to invade. Bolivia lost 120,000 sq km of land and its entire coastline.

Bolivia has never given up on regaining its access to the sea, and the loss of the Litoral province remains a traumatic event for the country. Bolivia still maintains a navy and celebrates the Day of the Sea annually. In 2013, Bolivia took its case to the International Court of Justice, suing Chile for the land it lost in the War of the Pacific. However, the court ruled against Bolivia, stating that Chile was not obliged to negotiate access. Despite this final ruling, Bolivia's president, Evo Morales, has stated that the country will never give up on its aspirations for sovereign access to the sea.

In 1975, the Chilean government made a proposal to Bolivia for a swap of a narrow corridor of Chilean land from the sea to the border between the two countries, in exchange for the same amount of Bolivian territory. However, this proposal involved former Peruvian land, and Peru objected to these changes. Bolivia still wishes for an Atacama corridor, which Chile rejects, although it does grant unrestricted traffic to all kinds of Bolivian merchandise through that territory.

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