3 JANUARY 1880, Page 10

The Chilians appear to have inflicted most serious, and pro-

bably final, defeats upon the Peruvians and their Bolivian allies. On November 2nd, according to detailed accounts received at New York from Peruvian sources, the Chilians attacked and carried Pisagua, slaying 1,000 out of its 1,600 defenders. The Chilians advanced to a hill called San Francisco, which commands the railway to Tara- pace, and entrenched themselves, and here they were at- tacked by General Buendia, with 8,700 Peruvians and Boli- vians. The attack was renewed three times, and three times failed, the Chilians' Krupp guns making havoc among the allies. General Buendia then gave the order to retreat, the Chili= cavalry followed, and the allied army, demoralised and dispirited,. broke up and fled into the desert. It is asserted that 3,000 of them were slain, that most of the remainder perished of hunger, and that only 300 returned to Agna Santa with the story of their defeat. Even supposing the account of the catastrophe exaggerated, Peru has sustained a severe blow, and the Chilians are in possession of the territory producing nitrates, their leases over which were the ostensible cause of war. It is sup- posed that the straggle is over, but these Spanish Republics are very tough, and the Chilians are still far from the Peruvian centre, Lima.