Background
The Bolivian government had threatened to confiscate and to sell the Antofagasta Nitrate & Railway Company, a mining enterprise with Chilean and British investors, by a decree on February 1, 1879. In response, the Chilean government sent a small military force which disembarked and seized control of the port of Antofagasta on February 14. This event made Bolivian President Hilarión Daza declare war on Chile, and also forced Peru to honor a secret 1873 treaty with Bolivia. Although Peru tried to negotiate and to stop the imminent conflict, Chile, knowing of this pact, declared war on both Peru and Bolivia on April 5. Another small Chilean force took control of the city of Calama after its victory in the Battle of Topater on March 23.
From the beginning of the conflict, both sides clearly knew that control of the sea was the key to obtaining victory. Whichever country controlled the sea could freely transport troops and land them at any strategic point. So, during the first year of the war, Chilean strategy focused on destroying the Peruvian Navy.
In order to achieve this goal, the Chilean naval commander, Juan Williams Rebolledo, planned to sail north with his entire fleet, trying to engage the Peruvian Navy at Callao and achieve domination of the sea once and for all. The main ships of the Chilean Navy were sent towards the Peruvian port of Callao. Two old, wooden ships, the corvette Esmeralda and the schooner Covadonga, commanded by Captains Arturo Prat and Carlos Condell respectively, were left blockading the Peruvian port of Iquique.
However, as the Chilean Navy steamed north towards Callao, two ironclad ships of the Peruvian Navy steamed south from Callao, unseen. These ships were the monitor Huáscar and the armored frigate Independencia, commanded by Rear Admiral Miguel Grau (then a Captain), the commanding officer of the Peruvian Navy and Captain Juan Guillermo More.
Read more about this topic: Iquique Naval Combat
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