9. In 1891, the U.S. Secretary of State attempted to assist in the defeat of a Chilean rebellion by cutting off arms supplies, only for the rebellion to win and later sue the United States for their interference and illegal seizure of property
In 1891, the Chilean National Congress split with the Chilean President, José Manuel Balmaceda, precipitating a violent civil war. The Chilean Navy sided with the Congressionalist cause, whilst the Army with Balmaceda. Seeking support among multinational corporate interests operating in Chile, the Congressionalists attempted to purchase weapons from private military companies in the United States through these third-parties to aid in the conflict. Sensing that an influx of weapons might change the fortunes of the war, Chilean Foreign Minister Prudencio Lazcano appealed to United States Secretary of State James Blaine to intercede and prevent the transactions.
Agreeing to aid the Chilean government, in strict breach of international protocol to avoid involvement in internal affairs, the United States Marshal Service was ordered to seize the Itata – a ship carrying arms bought by American nitrate companies on behalf of the Chilean Congress. Defying orders to remain in port, the Itata set sail on May 7 before eventually being forced to surrender to an international blockade involving the Royal Navy, German Imperial Navy, and U.S. Navy. Despite the return of the Itata, along with its cargo of 5,000 rifles, to San Diego, another ship, the Maipo arrived just one month later with munitions anyway and, to the immense embarrassment of both Blaine and the United States, the Congressionalists emerged victorious in the conflict. Failing to prosecute the Itata and its crew, with the cargo being determined in court to be private property and consequently beyond the jurisdiction of the U.S. Federal Government, to add insult to injury the Chilean government sued the U.S. in 1901 for illegal seizure of property.