in its immediate neighbourhood, named Jesus and Chivecura, on either shore of the Biobio.  Solicitous to destroy this new settlement, which he considered as a disgrace to his administration, Paillamachu sent in 1595, one of his officers named Loncothequa, with orders to destroy the fort of Jesus.  After twice penetrating within the works, and even burning a part of the interior buildings of this place, Loncothequa lost his life without being able to accomplish the enterprise.

In 1596, the toqui made frequent incursions into all the Spanish districts, both within and adjoining the Araucanian territory, on purpose to subsist his troops and to inure them to a military life.  The Spanish army attempted in vain to prevent or pursue these predatory detachments, as the wary Paillamachu took the utmost care to avoid any encounter, determined to reserve his force for some favourable occasion.  On purpose to restrain these incursions Loyola erected two additional forts in the neighbourhood of the encampment or head-quarters of the toqui, one on the scite of the old fort of Puren, and the other on the borders of the marshes of Lumaco, which he garrisoned with the greater part of a reinforcement of troops which he had just received from Peru.  He sent the remainder of these in 1597 to the province of Cujo, where they founded a new city, called San Luis de Loyola, which still subsists in a miserable condition, though placed in a very advantageous situation.

The fort of Lumaco was soon afterwards taken by storm, by the toqui in person, who gave orders to two of his officers to reduce that of Puren.  In ten days they reduced the garrison to the last extremity, but had to desist from the enterprise by the approach of a reinforcement under the command of Pedro Cortes, a Spanish officer who acquired great reputation in the Araucanian war.  The governor Loyola arrived there soon afterwards with his army, and gave orders to demolish the fortifications and to remove the garrison to Angol, lest it might experience a similar fate with what had so recently happened to the fort of Lumaco.  He then proceeded to Imperial, Villarica and Valdivia, the fortifications of which places he carefully repaired, to secure them against the increasing strength of the enemy, and then returned towards the Biobio under the security of an escort of three hundred men.  As soon as he thought himself in a place of security, he ordered back the escort, retaining only along with himself and family sixty-two half-pay officers and three Franciscan friars.  Paillamachu had secretly followed and watched all the motions of the governor, and concluded that he had now found a favourable opportunity to attack him.  Finding him accordingly encamped in the pleasant valley of Caralava, he attacked him with a select band of two hundred Araucanians, on the night of the 22d November 1598, and slew Loyola and all his retinue.