General del Valle, after defeating the Indians at Combapata, continued his march up the valley of the Vilcamayu, crossed the pass of Ayaviri, and, entering the Collao, advanced towards Puno, where he arrived in the middle of May. But the Indians of his army were disgusted at the excessive rigour with which the rebels were treated; they deserted in great numbers,[244] and assisted the troops of Diego Tupac Amaru in harassing the Spaniards, and cutting of all supplies. The army of del Valle had been shamefully neglected by the visitador Areche, who was too busy in torturing his prisoners to attend to the commissariat. The troops were wretchedly clad, unpaid, without medical stores, or biscuit, or fresh meat. Under these circumstances the General reluctantly determined to retreat to Cuzco, taking with him the garrison and inhabitants of Puno, which place was evacuated by Orellana on the 26th of May. The army which had left Cuzco in March 15,000 strong was now reduced, by desertions and sickness, to 1443 men, with which force General del Valle commenced the retreat, closely followed and constantly harassed by the Indians. He reached Cuzco on the 4th of July, when a paper war ensued between him and Areche, the latter blaming him for evacuating Puno, while the General retorted that Areche had shamefully neglected the wants of his army, and failed to make any attempt to subdue the country round Cuzco.[245]
The Viceroy seems to have taken the part of the General in this controversy; and the foul vulture Areche, with his companion Matta Linares, was recalled. He reached Lima on August 23rd, 1781, and embarked for Spain with the poor little Fernando, son of Tupac Amaru, who was sentenced to imprisonment for life.

The Indians still remained in arms round Cuzco, especially in the heights above Urubamba and Calca, and at Lauramarca and Ocungate. Those near Calca fortified themselves in a place called Chayña-ccasa, against whom the General sent a force of 400 men under Don José de Barela, and the Indians were defeated with great slaughter; while Don Joaquim Balcarcel kept the insurgents in check, who continued to threaten Paucartambo.

After the retreat of General del Valle from Puno, Diego Tupac Amaru established his head-quarters at the town of Azangaro, while Andres Mendagure and Miguel Bastidas overran the provinces on the eastern shore of lake Titicaca, captured the town of Sorata, and placed themselves in communication with the insurgent forces in Upper Peru. It is said that fifteen mule-loads of treasure, consisting of spoils from the provinces of Omasuyos and Larecaja, were brought into Azangaro at this time and buried. Diego Tupac Amaru occupied a house near the plaza, where he gave audience in a long sala; and he went from this house to the church every night, wrapped in a large cloak. This story made people believe that he was concealing treasure, and many a fruitless search has since been made for it.[246]






