Early colonization Beginning in 1842, German expatriate
Bernhard Eunom Philippi sent a proposal for German colonization of Southern Chile to the Chilean government; he presented a second colonization scheme in 1844. Both schemes were rejected by Chilean authorities. The second scheme considered the colonization of both the shores of
Llanquihue Lake and the mouth of the
Maullín River in what is now the
Los Lagos Region of southern Chile. The mentioned river was also
to be made navigable. Land purchases of dubious legality were made by Kindermann and his father-in-law Johann Renous around
Trumao with the aim of re-selling these lands to German immigrants. The bankrupt Flindt had made similar purchases near
Osorno. The Chilean legislature entered colonist recruitment with passage of the Law of Colonization and Vacant Lots (
Ley de Colonización y Tierras Baldías), which was signed by president
Manuel Montt in 1845. The Chilean government initially ordered Philippi to recruit 180–200 German Catholic families. Troubled by Catholic bishops in Germany who opposed the departure of their parishioners, Philippi asked for and was granted permission to recruit non-Catholic immigrants. One of the most notable early immigrants was
Carl Anwandter, who settled in Valdivia in 1850 after having participated in the
Revolution of 1848 in Prussia. Most immigrants had their own economic means and were therefore free to settle where they wished. They settled mainly around Valdivia. The few Catholic families from Württemberg, who needed Chilean state support, could be allocated as the government wished. By 1850, this last group was too small to establish a functional German settlement at the shores of Llanquihue Lake as Philippi had envisioned. He instead decided to settle the Catholic families in the interior of Valdivia Province. Upon his return to Chile in 1851, Philippi was admonished by minister
Antonio Varas for sending too many Protestant settlers. As punishment Philippi was appointed governor of
Magallanes instead of being appointed leader of the future Llanquihue settlement as he wished. In Magallanes, Philippi was killed by indigenous people in 1852. , a town at
Llanquihue Lake with strong German influence. The sponsored colonization of Valdivia and Osorno lasted until 1858. The shores of Llanquihue Lake were largely colonized between 1852 and 1875, but
Puerto Montt (then called Melipulli) and
Puerto Varas had already been founded by Chileans in 1850.
Frutillar, on the shores of Llanquihue Lake, was founded in 1856. Compared to Germans who settled in the big cities and ports of northern Chile, the Germans of southern Chile retained much of their
German culture or
Deutschtum.{{Citation ==Economic impact==