At this time, Philipillo, the Indian interpreter who has been already mentioned as the cause of the death of Atahualpa, fearing to incur the punishment of his treachery, fled from the camp of Almagro to that of Alvarado, taking along with him a principal Peruvian cacique. These men had concerted with most of the Peruvian curacas or chiefs who accompanied Almagro, to hold themselves and their people in readiness to abandon him and to join Alvarado at the earliest notice sent them for that purpose. Immediately on his arriving in the presence of Alvarado, Philipillo offered to make him master of the whole country, informing him at the same time of the design of Almagro to retire to Cuzco, and that if he chose to attack him without delay he might easily make him prisoner, as he had only about eighty horsemen and a hundred and fifty infantry. On this advice, Alvarado marched immediately to attack Almagro, whom he found at Liribamba, resolved to defend himself bravely, and to die fighting rather than fly. Almagro had thrown up intrenchments for his defence, having divided his small party into two bands, one of which he commanded in person, and placed the other under the command of Benalcazar. Alvarado marched up with his troops in order of battle; but when just on the point of commencing the attack, certain propositions of peace were made, and a truce was agreed upon for the rest of the day and the following night, on purpose to agree upon conditions176. In a conferrence for this purpose, an agreement was entered into, which was greatly forwarded by a licentiate named Caldera. It was agreed that Almagro should pay to Alvarado 100,000 pesos, or 2000 marks of gold177, as an equivalent for the expences he had incurred in fitting out his expedition, and that the two commanders should go together to Pizarro, for the purpose of procuring the necessary funds for payment of this agreement. The conditions were kept secret, lest the companions of Alvarado might prevent their execution, as their interest had been entirely overlooked in this agreement. It was therefore given out that Alvarado was to embark with his people to make farther discovery of the country, leaving that part which was already occupied and conquered by the Spaniards, and permission was given to all who thought proper that they might remain at Quito with Benalcazar. A considerable number of the followers of Alvarado availed themselves of this permission, and others accompanied him and Almagro to Pachacamac, where they were informed Pizarro had gone from Xauxa expressly to receive them. Before leaving the province of Quito, Almagro ordered the curaca who deserted from him along with Philipillo to be burnt alive, and would have treated the interpreter in the same manner, but Alvarado interceded for him, and obtained his pardon.

While Almagro and Alvarado were on their march from the province of Quito for Pachacamac, the curaca or chief of the Cagnares, informed them that the Peruvian general Quizquiz had assembled an army of above 12,000 men, with which he had collected all the people and cattle of the country between and Xauxa, and intended attacking them on their march. This chief added, that if they would delay their march for some time, he would contrive a plan for delivering Quizquiz into their hands. Almagro was not disposed to put too much confidence in this proposal, and continued his journey. On arriving in the province of Chaparra178, they unexpectedly fell in with above two thousand Peruvian warriors commanded by a curaca named Sotaurco. This was the advanced guard of Quizquiz, whose main body was two or three days march in the rear. Quizquiz had a similar detachment at a considerable distance on his left flank, on purpose to raise contributions of provisions from the inhabitants of the country for the subsistence of his army; and had besides a rear guard of three or four thousand warriors, two days march behind. The main body under his own immediate command escorted all the cattle which had been collected on the march, and great numbers of prisoners, so that his whole army occupied a space of above sixty miles of country.

Sotaurco, the commander of the Peruvian vanguard, endeavoured to gain possession of a defile or pass in the mountains, by which he supposed the Spaniards intended to march; but Almagro not only prevented the execution of that project by seizing the pass, but even made Sotaurco prisoner. From him Almagro was informed of the order of march observed by Quizquiz, and determined to make a forced march with all his cavalry to attack him. In this march, at a steep stoney pass near a river which it was necessary to pass, most of the horses lost their shoes; and as it was in the night, the Spaniards had to replace them as well as they could by the light of fires and candles. Being afraid lest Quizquiz might be informed of their approach by some of the natives of the country, Almagro continued his march with all possible expedition, and towards the evening of the second day of his march he came in sight of the Peruvian camp.

Immediately on seeing the Spaniards, Quizquiz withdrew to some distance with all the women and people who were unfit for battle, and placed his troops in a post of very difficult access under the command of Huaypalca, a brother of the late inca Atahualpa. Almagro advanced without hesitation to attack them, although the horses were so weary that they were hardly able to move though led mostly by the soldiers; besides which the Peruvians rolled down upon them from the mountain great quantities of large stones and fragments of rock. In spite of every obstacle, the Spaniards made their way to the post occupied by Huaypalca, which they attacked both in front and flank, and forced him to retire among the steep rocks, where he defended himself till night, and then drew off under cover of the darkness to rejoin Quizquiz. Sometime afterwards, it was learnt that the detached party of Peruvians which marched on the left of Quizquiz, had made prisoners of fourteen Spaniards, all of whom they put to death. Almagro, in continuing his march, was opposed by the Peruvian rear-guard at the passage of a river, so that he was unable to get over for a whole day. Besides occupying the opposite bank of the river, the Peruvians had taken possession of a very high mountain immediately above the place occupied by the Spaniards, so that they were unable to attack the enemy without exposing themselves to great danger; and indeed a good many of the Spaniards were wounded, among whom Alfonso de Alvarado was pierced quite through the thigh by a javelin, and another officer of rank was severely wounded. The Peruvians kept firm all night, but in the morning they abandoned their post on the banks of the river, leaving the passage free for the Spaniards. The Indians had burnt all the baggage which they could not carry off, but above 15,000 Peruvian sheep were found in their camp, and more than four thousand Indian men and women, of those whom Quizquiz had made prisoners, who now voluntarily surrendered themselves to the Spaniards. The Peruvian warriors had retired to a strong post on the top of a mountain, where Almagro did not think fit to attack them, as he was desirous to continue his march to the south.

On their arrival at San Miguel, Almagro sent the Captain Diego de Mora to Puerto Viejo, to take the charge of the vessels belonging to Alvarado, who likewise sent Garcias de Holguin on his part, that this measure might be executed amicably according to agreement. After giving all the necessary orders at San Miguel, and having provided his own men and those of Alvarado with arms, money, and clothes, he and Alvarado continued their journey towards Pachacamac. In the course of this march, he left Captain Martin Astete to build and settle a town now called Truxillo, in a convenient situation on the coast, in pursuance of orders to that effect from the governor Don Francisco Pizarro.