In November 1865, Kilpatrick was appointed Minister to Chile by President Andrew Johnson. This appointment was announced concurrently with the inclusion of Kilpatrick's name on a list of Republicans arrested for bribery. He was continued as Minister by President Grant. As American Minister to Chile, he was involved in an attempt to arbitrate between the combatants of the Chincha Islands War after the Valparaiso bombardment (1866). The attempt failed, as the chief condition of Spanish admiral Méndez Núñez was the return of the captured "Covadonga". Kilpatrick asked the American naval commander Commander John Rodgers to defend the port and attack the Spanish fleet. Admiral Méndez Núñez famously responded with, "I will be forced to sink [the US ships], because even if I have one ship left I will proceed with the bombardment. Spain, the Queen and I prefer honor without ships to ships without honor." (""España prefiere honra sin barcos a barcos sin honra".")