_Valdivia_ is situated on the banks of the river of the same name, in south latitude 40° 5', west longitude 80° 5', at three leagues distance from the sea. This city was founded in 1551, by Pedro de Valdivia, who gave it his name, and amassed much gold in its vicinity, which tempted many Europeans to settle in it, so that it soon became a place of importance. In 1599, it was surprised by the toqui Paillamachu, who entered it at night with 4000 men, slew the greater part of the garrison consisting of 800 soldiers, burnt the town, and carried the inhabitants into captivity. It was, however, soon rebuilt more strongly, and resisted all the attacks of the Araucanians, but was taken by the Dutch in 1640, who abandoned it soon after. On the arrival of the Spanish fleet which had been fitted out to attack the Dutch garrison, they found Valdivia deserted, and therefore set immediately about adding to its fortifications, erecting four new forts on both sides of the river, towards the sea, and one on the north on the land front. These precautions have prevented it from falling into the hands of the natives or foreigners, but it has been twice nearly destroyed by fire. This town contains a college built by the Jesuits, several convents, a parochial church, and a royal hospital; and is governed by a military officer, nominated from Spain, who has a strong body of troops under his orders. The fortress is provisioned, by sea, from the ports of Chili, and the troops are paid by the treasury of Peru. All the rivers in the vicinity of Valdivia contain much gold dust in their sands, and the plains furnish fine timber. Its harbour is formed by a beautiful bay made by the river, which is navigable for large vessels a considerable distance from its mouth. The island of Manzera, lying in the entrance of the stream, divides it into two channels, which are bordered by steep mountains and strongly fortified. The Spaniards not possessing any other settlements important enough to excite notice on the main land, towards the south, we shall pass to the description of their island territories in this quarter. _INSULAR CHILI._ No part of America has more islands on its coasts than Chili has, and many of these being inhabited, they form a political as well as a natural division of the kingdom. The following are the chief Chilian Isles:-- The three _Coquimbanes_, _Mugillon_, _Totoral_ and _Pajaro_, which lie off the coast of Coquimbo, and are each six or eight miles in circumference, but are uninhabited. _Quiriquina_, at the entrance of the harbour of Concepcion, and _Talca_, or _Santa Maria_ to the south of the harbour, which are two islands of about four miles in length, noted for the abundance of shell fish and sea wolves found on their coasts. In Santa Maria there are also fine springs, and many wild horses and hogs, the latter of which feed on the wild turnips which cover its valleys.