As
President of Bolivia, Santa Cruz instigated several failed plots to achieve a political union with
Peru, taking advantage of that country's chronic political unrest. His best opportunity came in 1835 when the Peruvian President
Luis José de Orbegoso requested his assistance to fight the rebel army of
Felipe Santiago Salaverry. Santa Cruz defeated Peruvian caudillo
Agustín Gamarra at the
Battle of Yanacocha (13 August 1835) and Salaverry at the
Battle of Uchumayo (4 February 1836) after which he had Salaverry
summarily executed. At the instigation of Santa Cruz, a Congress of the Peruvian southern
departments (
Arequipa,
Ayacucho,
Cuzco and
Puno) gathered at Sicuani and declared the establishment of the Republic of
South Peru (17 March 1836). A similar
assembly at Huaura of the northern departments (
Amazonas,
Junín,
La Libertad and
Lima) founded the
Republic of North Peru (11 August 1836). Both recognized Santa Cruz as
Supreme Protector with extensive powers, which enabled him to create the
Peru-Bolivian Confederation on 28 October 1836. He summoned to the city of
Tacna representatives of both
legislatures together with those of the
Bolivian Congress assembled at Tapacarí to establish a
Constitution for the new
State. Under his direction, they signed a pact on 1 May 1837, which named him Supreme Protector for a ten-year period. Invested with considerable powers, Santa Cruz endeavoured to establish in Peru the same type of
authoritarian order he had imposed in Bolivia. He issued a
Civil Code, a
Penal Code, a Trade Regulation, a
Customs Regulation and reorganized
tax collection procedures allowing an increase in state
revenues while restraining expenditures. The Confederation generated resistances among several groups in both countries, who resented the dilution of
national identities. An important number of Peruvian politicians opposed to the idea of the Confederation fled to
Chile, where they received support from the powerful Minister
Diego Portales. Together they amassed a military expedition against Santa Cruz, led by Admiral
Manuel Blanco Encalada, but they were encircled by Santa Cruz and had to surrender by the
Treaty of Paucarpata, signed on 17 November 1837. The Chilean Government organized a second expedition, which defeated the Supreme Protector at the
Battle of Yungay (20 January 1839) and forced the dissolution of the Confederation. During his tenure he advocated for the
protectionist economic policies. Andrés de Santa Cruz was a staunch supporter of protectionist
mercantilism rather than a
liberal. ==Later years==