The Occupation of Araucanía or Pacification of Araucanía (1861–1883) was a series of military campaigns, agreements and penetrations by the Chilean army and settlers into Mapuche territory which led to the incorporation of Araucanía into Chilean national territory. Pacification of Araucanía was the expression used by the Chilean authorities for this process. The conflict was concurrent with Argentine campaigns against the Mapuche (1878–1885) and Chile's wars with Spain (1865–1866) and with Peru and Bolivia (1879–1883).
The Mapuche people had a history of resistance to Spanish conquest with the area known as Araucanía remaining de facto independent through the colonial era. Following Chilean Independence War from Spain, relations between the nascent republic and the Mapuches of Araucanía remained mostly amicable. However economical and geopolitical reasons together with increasingly negative attitudes towards the Mapuche made Chilean authorities decide to seek an incorporation of Araucanía, by force if necessary. The Mapuche chiefdoms responded in different ways, some aligned with the central government, a substantial number followed the lead of the Arribanos in violently opposing the advance of Chilean settlers and soldiers into the region, while some others opted for neutrality. For the first ten years (1861−1871), the Mapuches were unable to prevent Chile from advancing its positions but at time were able to defeat in detail small detachments while avoiding large battles. Hostilities were minimal in the decade that followed, this period was mostly peaceful but ended when the Mapuches were unable to militarily oppose a large Chilean army that in March 1881 penetrated from the north to Cautín River, putting most of the territory under Chilean rule or at least occupation. In November 1881, the Mapuches made a last-ditch effort to regain control of their territory, launching coordinated strikes against Chilean settlements across the region. With most of these attacks repelled and Mapuche forces defeated within a matter of days in the years that followed Chile went on to consolidate its conquests.
The conflict led to the deaths of thousands of Mapuche by warfare and smallpox. Many Mapuches faced hardship from the widespread pillaging of the Chilean army, bandits and inability to cultivate. Disruption of the Mapuche economy was further aggravated by having their lands reduced plunging many into poverty that has persisted for generations.
Background
Beginning in the second half of the 18th century Mapuche-Spanish and later Mapuche-Chilean trade increased and hostilities decreased. Mapuches obtained goods from Chile and some dressed in "Spanish" clothing. Despite close contacts Chileans and Mapuches remained socially, politically and economically distinct. During Chile's first fifty years of independence (1810–1860) the government's relationship with the Araucanía territory was not a priority and the Chilean government prioritized the development of Central Chile over its relationship with indigenous groups.
Domingo Faustino Sarmiento stated: Between two Chilean provinces (Concepción and Valdivia) there is a piece of land that is not a province, its language is different, it is inhabited by other people and it can still be said that it is not part of Chile. Yes, Chile is the name of the country over where its flag waves and its laws are obeyed.
Expansion of Chilean agriculture
The Chilean agricultural sector was badly affected by the Chilean War of Independence. Following the Chilean silver rush that began in 1832, agriculture expanded in the Norte Chico. The next major expansion of agricultural activity occurred from 1848 onwards as a result of wheat demand during the colonization of Australia and the California Gold Rush. Despite the eventual vanishing of the Californian and Australian markets, wheat cultivation remained highly profitable. In the 1850s, with the German colonization of Valdivia, Osorno and Llanquihue and the onset of sheep farming in the Chilean territory at the Strait of Magellan, Araucanía remained the sole place for agriculture to expand.
Mapuche lands around the south of the Bío-Bío River began to be bought by non-Mapuches in the late 18th century, and by 1860 land between Bío-Bío and Malleco River was mostly under control of Chileans. The Chilean wheat boom increased pressure to acquire lands in Araucanía by Chileans and led to numerous scams and frauds against Mapuches. A limited number of speculators obtained control over vast lands through frauds and maintained control over their assets with the aid of gunmen.