Peru, harassed and divided by internal dissension, turned, as his native country had turned in the hour of trouble, to General Santa Cruz.  It was proposed to form a confederation of the two republics.  This proposition was carried out and solemnly ratified in 1835; whereupon the Peruvians, under the protection of their former chief magistrate, laid down arms, and prepared to enjoy the blessings of peace.  The Confederation was confirmed by a convocation of the Congresses of Cicuani, Huawra, and Tapacari, in 1836, and General Santa Cruz was named “Protector of the Confederation.”  In his capacity of Protector, the General made a triumphant entry into Lima, in 1837, where the deliberations of a General Congress of the Confederation were at once opened, and the constitution of the Confederation was determined upon.  The Protector’s liberal policy had secured the sympathy and esteem of all enlightened nations, gave an impetus to native enterprise and industry, and above all, restored the credit of Peru by acknowledging and liquidating the English liabilities.  This prosperous state of things was suddenly checked by the appearance of a hostile Chilian fleet, which seized upon the fleet of the Confederation in the port of Callao, without any previous declaration of war, and by the landing of a Chilian expedition on the Intermedios, accompanied by a handful of Peruvians who were hostile to the Confederation.  This expedition was soon subdued by the skill of General Santa Cruz, who exacted from it the treaty of Paucaupata, and then allowed free egress from the territory of the Confederation.  This generosity on the part of the Protector was met by treachery on the part of Chili, directly her army was once more on Chilian ground.  At this time the Government of Buenos Ayres made an unsuccessful attack upon the Confederation.  The enemies without having been successfully repulsed, the prosperous condition of the Confederation continued, till General Orbegoso, one of the founders of the Confederation, rebelled, and enlisted the troops under his command in his Cause.  This internal rebellion afforded a fresh and favorable opportunity for renewed hostility from without, and the result was that within a short space of time Chilian troops occupied Lima.  On the appearance of General Santa Cruz, however, the foes were compelled to evacuate and re-embark.  Defeated in this direction, the Chilian troops directed their course to the northern provinces, where Orbegoso’s rebel band were collected.  Gen. Santa Cruz, in the ardor of his determination to rid the territory of the Confederation from this treacherous foe, undertook a march of two hundred leagues, under the severity of which many of his troops sank, and the result of which was his defeat at Yungay, by the rebel forces.  The defection of Generals Ballivian and Velasco, who commanded two powerful divisions of the army of the Confederation, made this disaster irretrievable.  General Santa Cruz was obliged to retire to Guayaquil, whence he subsequently betook himself with his family to Europe.  He has lately been accredited by his native country Minister Plenipotentiary in London and Paris.