15 SEPTEMBER 1838, Page 2

The Chilians in June last sent a second expedition against

Peru, with the intention of blockading Callao and the other Peru- vian ports. SANTA CRUZ is fully prepared to encounter the Chi- Ilan squadron, and of its defeat there is little doubt. Meanwhile, what with the blockade of Vera Cruz and Buenos Ayres on one side of' the continent, and the war between Peru and Chili on the other, trade to South America is almost destroyed.