The disasters to the armies of the allies caused revolutions in both Peru and Bolivia, and the President of each of those countries fled to Europe. Armed revolts arose and fighting took place in the streets of Lima. The position of Peru was desperate. With her navy destroyed Peru could no longer defend herself against the aggressions of the enemy on the sea. The Chileans blockaded Callao, and a marauding expedition under Captain Lynch bombarded a number of coast towns. Captain Lynch had been ordered to ravage the whole coast north of Callao, and he executed his instructions to the letter, destroying government and private property in every direction. Several Chilean boats were sunk in the harbour of Callao through ingenious schemes of the Peruvians. On one occasion the Chileans saw a boat loaded with fresh provisions. They began to transfer these supplies to the _Loa_. As the last of the cargo was being hoisted aboard, a terrific explosion occurred that sank the _Loa_. It was no doubt due to an infernal machine that had been placed in the bottom. The _Covadonga_ was destroyed by a similar explosion on a small boat captured in the harbour by the Chileans. The United States offered its mediation in October, 1880, and commissioners of the three countries met on board the corvette _Lackawanna_ of the United States navy, in the harbour of Arica. The first meeting took place on the 22nd of October, when the American minister took the chair and announced the purpose of the convention. He added that the American representatives would take no part in the discussion, but would be glad to help with friendly suggestions. The Chilean commissioners presented a memorandum of their demands, which was in substance what was eventually granted, but the Peruvians refused such hard terms, thinking that foreign intervention would save them. Chile absolutely refused arbitration or a full war indemnity, and the convention broke up without any progress having been made towards peace. The delay of a few months in the progress of the war had enraged the volatile Chileans, and those in charge of the war finally decided that it would be necessary to capture Lima. An expeditionary force of thirty thousand men of all arms was organized, transports were purchased and the resources of the country were taxed to the utmost to carry on this expedition. The army was formed into three divisions, one of which, under Captain Patrick Lynch, was ordered to land at Pisco. A second division was instructed to disembark at Curayaco Bay, which was one hundred miles nearer the capital than Pisco. The first division was ordered to march by land northward to join the second division in the final attack upon the capital.