Chilean government considered it a bilateral case and endorsed the sui generis of the conflict. Thus, began the diplomatic conflict between Bolivia and Chile that escalated rapidly in magnitude given the lack of diplomatic tact of Daza's government. Peru participated as a mediator in the resulting crisis, deciding to send a Special Ambassador and Plenipotentiary to Santiago to try to avoid a possible war through negotiation. The treaty indicated that the controversies that give rise to "the intelligence and execution of the Treaty" should be submitted to arbitration. The occupation of Antofagasta On November 17, 1878, the government of La Paz ordered the prefect of the department of Cobija, Severino Zapata, to enforce the 10-cent tax established by the Law of February 14, 1878 in an attempt to counteract the serious economic crisis in Bolivia. Thus, originating the casus belli. Subsequently, on February 1, 1879, the government of Bolivia unilaterally rescinded the contract, suspending the effects of the law of February 14, 1878, and decided to claim the saltpeter fields occupied by the Compañía de Salitres y Ferrocarriles de Antofagasta. They proceeded to auction the assets of the company in order to collect the unpaid taxes, using armed force in the process. The auction was scheduled for February 14, 1879. Daza ignored the probability of Chilean retaliation. Chile occupied Antofagasta that same February 14, 1879, frustrating the auction. Daza, citing invasion as a casus belli, declared war on Chile. The secret treaty between Peru and Bolivia signed in 1873 in which former pledged to support the latter militarily in case of conflict with Chile. Chile declared war on Bolivia on March 5, 1879, and proceeded to occupy the Bolivian coast, asserting old unresolved territorial claims regarding the coast between those parallels. The War of the Pacific First phase: The unchallenged occupation of the Bolivian Litoral The entire Bolivian coastline was occupied by Chilean troops, completely unchallenged by the Bolivian Army. A widely spread version of the events of the outbreak of the war affirms that Daza celebrated his birthday when Chile invaded Antofagasta. Coinciding with carnival, it is said that Daza withheld the news of the Chilean invasion so as not to interrupt the festivities. However, this has never been confirmed. Finally, on February 28, the news of the Chilean invasion was known in Bolivia. On March 1, Daza declared the breakdown of communications with Chile and the seizure of