In 1836 Andrés de Santa Cruz created the Peru-Bolivian Confederation and challenged the status quo in South America.

They handed over the ships to Ramon Freire, a Chilean exiled head of state in Lima who pretended his return to the presidency of Chile.

He was also furnished with men, arms, and ammunition in a conjoint scheme of General Orbegoso and Santa Cruz against the existing administration of Chile.

[citation needed] During the voyage, Monteagudo crew rose against Freire's partizans on board and proceeded to Valparaíso to deliver the ship and the prisoners to the Chilean authorities.

[citation needed] On 30 August 1836 the Chilean plenipotentiary Mariano Egaña arrived to Callao with the ships Monteagudo, Colo Colo, Valparaíso, Aquiles, and Orgeboso to negotiate a treaty based on several points: the payments of the outstanding international debts owed by Peru to Chile, the limitation of the outstanding armies, commercial agreements, compensation to Chile for the Freire Expedition, and the dissolution of the Confederation.