The maintenance of the parliamentary system, however, continued to produce frequent alterations in the personnel of the Cabinet.
In its foreign relations, apart from the adjustment reached with Argentina, Chile managed to settle the difficulties with Bolivia arising out of the War of the Pacific.

By the terms of treaties concluded in 1895 and 1905, the region tentatively transferred by the armistice of 1884 was ceded outright to Chile in return for a seaport and a narrow right of way to it through the former Peruvian province of Tarapaca.
With Peru, Chile was not so fortunate.

Though the tension over the ultimate disposal of the Tacna and Arica question was somewhat reduced, it was far from being removed.

Chile absolutely refused to submit the matter to arbitration, on the ground that such a procedure could not properly be applied to a question arising out of a war that had taken place so many years before.

Chile did not wish to give the region up, lest by so doing it might expose Tarapaca to a possible attack from Peru.