SOUTH AMERICA.

New Zealand Herald, Volume III, Issue 648, 9 December 1865, Page 4

SOUTH AMERICA.

WAR DECLARED BY CHILI AG AINST SPAIN. BLOCKADE OF CHILIAN POETS BY THE SPANISH FLEET. By the arrival of (lie Mntias Salvinius, yesterday, from Valparaiso, we learn that the arrangements made in May last on behalf of tlio Spanish niid ("Lilian Governments, had not been approved of by the former Government. Admiral Don Jose Manuel Pareja arrived at Valparaiso on llie lStli of September with a Spanish fleet, and demanded an apologetic salute to his flag, to which he was prepared to reply, ami then open negotiations. 'Hie Chilinn (tovernment, instead of apologising for the offences given to Spain and supposed to have been, arranged, declared war. The ports were then, as far as practicable, blockaded by the Spaniards, and the Admiral had requested the English and French store ships t shift their moorings, as they lay in tho direct lino of fire from his ship to the fort. It was believed in tlio town that lie would fire on the fort, the customhouse, and the railway station, and even on the houses generally, and families were removing into the country. Tho banks had stopped specie payment, and business was for a time at an end.