The early years of the Republic of Ecuador were spent under
debt moratorium on the international financial market. The debts had been incurred during the
Gran Colombia era, and had been assumed by President Flores in 1837. The debt owed to
Great Britain, known as the
Deuda inglesa ("English debt") exceeded 6.6 million
pounds sterling, of which Ecuador owed 21.5 percent, or 1.4 million pounds. As the Ecuadorian government had done at least twice previously, President Francisco Robles attempted to settle this debt by transferring title over part of its territory; In the wake of this unpopular move, a series of opposition movements championed by regional
caudillos were formed. On May 1, a
conservative triumvirate, initiated by Dr.
Gabriel García Moreno, Pacífico Chiriboga and
Jerónimo Carrión (Robles' vice president), formed the Provisional Government of Quito. On May 6, Carrión separated himself from the triumvirate, and formed a short-lived government in the city of
Cuenca; he was deposed the next day by forces loyal to Robles. As García Moreno was trying to resurrect his movement, the mediation efforts of the
Granadine Confederation (a short-lived federal republic) and Chile had fallen through, with both countries blaming Peru for the failure. The Peruvians were playing to all sides in the civil dispute; on August 31, 1859, Castilla betrayed his commitment to García Moreno, and came to an agreement with Franco that resulted in the end of the blockade of Guayaquil. Several weeks later, the
Mosquera-Zelaya Protocol, the result of the secret agreement between Peru and Cauca to take control of Ecuador, was signed in
Popayán. however,
Babahoyo,
Vinces and
Daule sided with the Provisional Government. On September 18, an assembly in
Loja named
Manuel Carrión Pinzano military and civil chief of the province; the following day, Carrión Pinzano called a new assembly that established a federal government presiding over
Loja,
El Oro and
Zamora. On September 26, Cuenca affirmed its allegiance to the Provisional Government. With the domestic situation at its most tumultuous, and the Peruvian blockade of the rest of the Ecuadorian coast nearing the end of its first year, Castilla sought to take advantage of the circumstances to impose a favorable border settlement. On September 20, Castilla wrote to Quito to declare his support for the Provisional Government; ten days later, he sailed from Callao with an invasion force. In Loja, Manuel Carrión Pinzano proposed that the four governments vying for control of Ecuador select a representative to negotiate a settlement with Castilla. On November 13, Cuenca was forced to recognize Guillermo Franco's government in Guayaquil; Franco thus became Supreme Chief of Guayaquil and Cuenca. The next day, Franco and Castilla met once again, aboard the Peruvian ship
Amazonas, and made arrangements for a definitive peace treaty. García Moreno soon became aware of the unauthorized pact between Franco and Castilla. In an unsuccessful attempt to seek a powerful ally, García Moreno sent a series of secret letters to the
chargé d'affaires of
France, Emile Trinité, on December 7, 15 and 21; in them, he proposed that Ecuador become a French
protectorate. Fortunately for his cause, the agreement between Franco and Castilla had the effect of uniting the disparate governments of Ecuador against their new common enemy:
El Traidor (the traitor) Franco. The treaty had as its object the resolution of the territorial debate. In its first article, it affirmed that relations were to be re-established between the two countries. The matter of the borders was dealt with in articles 5, 6 and 7, where the Icaza-Pritchett treaty was declared null, Peru's position of
uti possidetis was accepted, and Ecuador was allowed two years to substantiate its ownership of Quijos and Canelos, after which time Peru's rights over the territories would become absolute if no evidence was presented. The treaty additionally nullified all prior treaties between Peru and Ecuador, whether with the latter as a division of Gran Colombia or as an independent republic. This constituted acknowledgement of the
Real Cédula of 1802, which Ecuador had previously rejected. ==1860: the Provisional Government of Quito rises to power==