Don Francisco de Meneses, a Portuguese by birth, had the glory to terminate this new war in 1665 by a peace, which proved more permanent than that concluded by Baydes. After freeing himself from the Araucanians, he had the misfortune of being involved in a contest with the members of the royal audience, who opposed his marriage with the daughter of the Marquis de la Pica, as contrary to the royal regulations. This difference proceeded to such a length, that the Marquis de Navamorquende was sent out from Spain to Chili with full powers to arrange matters; who, after due inquiry, sent Meneses to Peru and assumed the government himself. After Navamorquende, the government of Chili was administered successively to the end of the seventeenth century, by Don Miguel de Silva, Don Jose de Carrera, and Don Thomas Marin de Proveda, by all of whom a good understanding appears to have been kept up with the Araucanians: But in 1686, war had nearly been again occasioned with that nation, in consequence of removing the inhabitants of the island of Mocho to the north shore of the Biobio, in order to prevent any intercourse with foreign ships.

The commencement of the eighteenth century was remarkable in Chili by three events: The deposition of the governor Don Francisco Ibanez, the rebellion of the inhabitants of Chiloe, and the establishment of trade with the French. Ibanez was accused of having espoused the Austrian party in the succession war, and was banished to Peru; and after him, the government was successively administered until the year 1720, by Don Juan Henriquez, Don Andres Uztariz, and Don Martin Concha. The rebellion of the islanders of Chiloe was soon suppressed, and the inhabitants reduced to obedience, by the prudent management of Don Pedro Molina, the quarter-master-general of Chili, who was sent against them with a considerable body of troops, but who succeeded in restoring them to good order more by mild and conciliatory measures than by useless victories. In consequence of the succession war, by which a prince of the house of Bourbon was placed on the throne of Spain, the French acquired for a time the whole external commerce of Chili. From 1707 to 1717, the ports of that kingdom were filled with French ships, which carried from thence incredible sums in gold and silver; and many Frenchmen settled at this time in the country, who have left numerous descendants. During this period the learned Feuille resided three years in Chili, and made his well known botanical researches and many profound metereological observations.

For some time the Araucanians had been much dissatisfied with several articles in the peace, under colour of which the Spaniards availed themselves of forming establishments in their country. They also were exceedingly impatient of the insolent behaviour of certain persons, called captains of the friends, who had been introduced under the pretence of protecting the missionaries, and now arrogated a considerable degree of authority over the natives which they submitted to with extreme reluctance. Stimulated by resentment for these grievances, the Araucanians resolved in 1722 to have recourse to arms, and in this view they proceeded to the election of a toqui or military dictator. On this occasion they chose a person named Vilumilla, a man of low rank, but who had acquired a high character with his countrymen for judgment, courage, and extensive views, entertaining no less an object than the entire expulsion of the Spaniards from Chili. To succeed in this arduous undertaking, he deemed it necessary to obtain the support and assistance of all the native Chilese, from the confines of Peru to the Biobio, and vast as was the extent of his plan, he conceived it might be easily executed. Having slain three or four Spaniards in a skirmish, among whom was one of the captains of friends, as they were called, he dispatched messengers with the symbolical arrows, each of whom carried a finger of the slain Spaniards, to the various Chilese tribes in the Spanish provinces, inviting them to take up arms on the exhibition of a signal, to be given by kindling fires on the tops of the highest mountains all over the country. Accordingly, on the 9th of March 1723, the day previously fixed upon for the commencement of hostilities, fires were lighted up on the mountains of Copaipo, Coquimbo, Quillota, Rancagua, Maule, and Itata. But either owing to the smallness of their number, their apprehension of the issue of the war, or their long habitude of submission, the native Chilese in the Spanish provinces remained quiet, and this vast project of the toqui was entirely disconcerted.

Having declared war against the Spaniards, Vilumilla set out immediately at the head of an army to attack the Spanish settlements: Yet before commencing hostilities, he requested the missionaries to quit the country, that they might not be injured by his detached parties. Vilumilla signalized the commencement of this new war by taking the fort of Tucapel by storm. Being apprehensive of a similar fate, the garrison of Arauco abandoned that place. After destroying these two forts, Villumilla directed his march for Puren, of which he expected to gain possession without resistance. But the commander made so vigorous a defence that he was under the necessity of besieging it in form. In a short time the garrison was reduced to extreme distress, both from scarcity of provisions and want of water, the aqueduct which brought water to the fort being destroyed by the enemy. During a sally made by the commander to obtain supplies, he and all his followers were slain. In this critical situation, Don Gabriel Cano, who had succeeded Concha in the government, arrived with an army of five thousand men. As Vilumilla expected an immediate attack, he chose a strong position for his army which he drew up in order of battle behind the deep bed of a torrent: But, though repeatedly challenged to battle by the enemy, Cano thought it more prudent to abandon the place, and accordingly withdrew the remainder of the garrison. The war was afterwards reduced to skirmishes of small importance, and was soon terminated by a peace concluded at Negrete, a place situated at the confluence of the Biobio and the Laxa, by which the provisions of the treaty of Quillan were renewed, and the odious title of captains of the friends abolished.

After a mild and harmonious government of fifteen years, Don Gabriel Cano died at St Jago, and was succeeded by his nephew Don Manuel de Salamanca, who was appointed by the viceroy of Peru, and who conducted the government in conformity with the excellent maxims of his uncle. Don Joseph Manso, who was sent from Spain as his successor, brought orders to collect the Spanish inhabitants who were dispersed over the country into cities. For this purpose, in 1742, the new governor founded the cities of Copaipo, Aconcagua, Melipilla, Rancagua, San Fernando, Curico, Talca, Tutaben, and Angeles. In reward for this service, he was promoted to the high dignity of viceroy of Peru. His successors continued to form new establishments, and in 1753, Santa Rosa, Guasco-alto, Casablanca, Bellaisla, Florida, Coulemu, and Quirigua were founded by Don Domingo Rosas; but these have never flourished like the former. This governor likewise sent a colony to occupy the larger island of Juan Fernandez, or Isola de Tierra, which had remained uninhabited till that time, to the great injury of commerce, as the pirates found there a secure retreat whence they could easily annoy the trade of Peru and Chili. In 1759, Don Manuel Amat, who was afterwards Viceroy of Peru, founded the cities of Santa Barbara, Talcamavida, and Gualqui on the Araucanian frontier.

Tranquillity was again disturbed about the year 1770, under the government of Don Antonio Gil Gonzago, who absurdly endeavoured to compel the Araucanians to live in cities. Many councils were held to devise the most suitable means for carrying this chimerical scheme into execution, which was much ridiculed by those who were best acquainted with the dispositions of the Araucanians, while others sided with the governor in supposing it practicable. The Araucanians were informed of these intentions of the governor by their spies; and being apprehensive of danger to their liberties from the proposed innovation, their chiefs met secretly to deliberate upon the best measures for eluding the designs of the governor without having recourse to arms. On this occasion the following resolutions were entered into by the Butacoyog, or national assembly of the ulmens. 1st, To delay the business as long as possible, by equivocal replies and delusive promises. 2d, When pressed to commence building, to require tools and other necessary aids from the Spaniards. 3d, To have recourse to war, when they found themselves no longer able to elude the demands of the governor; but that only the provinces that were compelled to build should declare war, while the others remained neutral on purpose to mediate a peace. 4th, When the mediation of these should be refused, the whole confederacy to join in the war. 5th, To allow the missionaries to depart in safety, as they had nothing to accuse them of but being Spaniards. 6th, To elect a supreme toqui, who should have the charge of executing these resolutions, and was to have every thing in readiness for taking the field when necessary.-Accordingly Antivilu, apo-ulmen of Maquegua, was unanimously elected toqui; but as his province was one of those which were to remain neutral, he declined to accept the office, and Curignancu, brother to the ulmen of Encol was elected in his stead.