During the government of this toqui, the Dutch made another attempt to form an alliance with the Araucanians, in order to obtain possession of Chili, but with no better fortune than on the former occasion. Their squadron, consisting of four ships, was dispersed in a storm on its arrival on the coast in 1638. A boat well manned and armed, being afterwards dispatched to the island of Mocha, to enter into a parley with the Araucanians, was attacked by the inhabitants, who put all the crew to death and took possession of the boat. Another boat experienced a similar misfortune in the small island of Talca or Santa Maria, and the Dutch were obliged to retire without being able to establish any intercourse with the Araucanians, who were equally jealous of all the European nations, and not without reason. Some years afterwards, notwithstanding the ill success of the Dutch, a similar enterprise was undertaken by Sir John Narborough, an English naval commander, by order of Charles II. In passing through the Straits of Magellan, this whole fleet was lost.
In the mean time, taking advantage of the imprudence and unskilfulness of the Araucanian commanders, the governor continued constantly to lay waste their territories. He had at first given orders that every prisoner capable of bearing arms should be put to death; but afterwards, recurring to more humane measures, he ordered them to be transported to Peru, a sentence to them more intolerable even than death. Whenever these unhappy exiles came in sight of land, which often happened in that navigation, they used to throw themselves overboard in hopes to escape by swimming, that they might return to their country. Many had the good fortune to save themselves in that manner; but such as were unable to elude the vigilance of the sailors, as soon as they were landed on the island or at the port of Callao, exposed themselves to every toil and danger to regain their beloved country, travelling with incredible perseverance and fatigue the immense extent of coast between that port and the Biobio. When the relations of the prisoners, more anxious to deliver them from the miseries of exile than even from death, frequently sent messages to the governor to negociate the ransom of such as were condemned to be sent to Peru, he always refused his consent, unless the nation would lay down their arms and submit to his authority. Laso was exceedingly anxious to perform a promise which he had made like several of his predecessors, of putting an end to the war, and used every possible effort for that purpose, for which no one was better fitted to succeed; but he had to contend against an invincible people, enthusiastically bent upon the preservation of their liberties. He employed every means that could be suggested by wise policy and profound military skill to effect their subjugation; now endeavouring to humble their, pride by his victories, at other times ravaging their country with fire and sword, and endeavouring to restrain them by the establishment of fortresses in different parts of their territory. Among these, he founded a city not far from the ruins of Angol, to which he gave the name of San Francisco de la Vega, and left in it a garrison of four troops of horse and two companies of foot. But it was taken and destroyed in the same year in which it was built by the toqui Curimilla. A great number of men were necessarily expended in the prosecution of this obstinate war, so that the Spanish army, though annually reinforced with numerous recruits from Peru, was diminished to less than a half of its force at the commencement of the government of Laso. On this account he sent over Don Francisco Ayendano to Spain to solicit new reinforcements, and with a promise of bringing the war to a conclusion in the course of two years. But, judging from the past that so successful an issue was little to be expected, the court sent out Don Francisco de Zuniga, Marquis of Baydes, as his successor, who had given unquestionable proofs of his political and military talents, both in Italy and Flanders, where he had executed the charge of quarter-master-general. On his arrival in Chili in 1640, either in consequence of private instructions from the prime minister, or of his own accord, Zuniga procured a personal conference with Lincopichion, who had been elected toqui on the death of Curimilla. Fortunately for the interests of humanity, both commanders were of the same disposition in wishing for peace, and equally averse from the continuance of the destructive war which had so long raged between their hostile nations. They readily agreed upon the most difficult articles in settling the preliminaries, and a day was appointed at the commencement of the following year for ratifying the conditions of a definitive peace between the nations.
Accordingly, on the 6th of January 1641, the marquis came to Quillin, the place of meeting, a village in the province of Puren, attended by a retinue of about ten thousand persons collected from all parts of Chili, who insisted to accompany him on this joyful occasion. Lincopichion came there likewise at the time appointed, accompanied by the four hereditary toquis of the Araucanians, and a great number of ulmens and other natives. Lincopichion opened the conference with an eloquent speech; and then, according to the customs of his nation, he killed a chilihueque or Araucanian camel, and sprinkling a branch of the boighe or Chilese cinnamon tree with its blood, he presented it to the governor in token of peace. The articles of the treaty of peace were next proposed, agreed to, and ratified, being similar to those formerly mentioned which had been accepted by Ancanamon, with the addition of one insisted upon by the marquis, that the Araucanians should not permit the landing of any strangers on their coast, nor furnish supplies to any foreign nation whatever. As this was entirely conformable to the political maxims of the Araucanian nation, it was readily agreed to, and the peace finally ratified and confirmed. Thus was an end put to a destructive and sanguinary war, which had desolated the possessions of the two nations for ninety years. This, important negociation was closed by the sacrifice of twenty-eight chilihueques, and by an eloquent harangue from Antiguenu, the ulmen of the district where it was concluded, in which he enlarged on the advantages which both nations would reap from the establishment of peace. After this, the two chiefs cordially embraced, and congratulated each other on the happy termination of their joint endeavours. They then dined together, and made mutual presents to each other, and the three succeeding days were spent by both nations in festivities and rejoicing.
In consequence of this pacification, all prisoners were released on both sides, and the Spaniards had the satisfaction of receiving, among many others, forty-two of their countrymen who had been in captivity ever since the time of the toqui Paillamachu. Commerce, the inseparable concomitant of a good understanding among neighbouring nations, was established between the Spaniards and Araucanians. The lands near the frontiers on both sides, which had been deserted and laid waste by the mutual hostile incursions, were repeopled, and a new activity was excerted in their cultivation by the proprietors, who could now enjoy the produce in tranquillity and safety. The hopes of disseminating the truths of Christianity among the infidels were again revived, and the missionaries began freely to exercise their beneficent functions among the inhabitants of Araucania. Notwithstanding the manifold advantages of peace to both nations, there were some unquiet spirits, both among the Araucanians and Spaniards who used their endeavours on specious pretences to prevent its ratification. The Araucanian malecontents alleged that it was merely a trick to deceive their nation, in order to conquer them at a future opportunity with the more facility, when they had become unaccustomed to the use of arms. Those of the Spaniards, on the contrary, who were adverse to peace, pretended that by the establishment of peace, the population of the Araucanians would increase so fast that they would soon be able to destroy all the Spanish establishments in Chili. Some of these had even the audacity to cry to arms, and endeavoured to instigate the auxiliaries to commence hostilities, while the conferences were going on. But the marquis had the wisdom and good fortune to prevent the renewal of the war, by justifying the purity and good faith of his intentions to the evil disposed among the Araucanians, and by reprimanding and keeping in awe the malecontent Spaniards, and finally accomplished this glorious measure, which was approved and ratified by the court of Spain.