 The Patagonian tensions heightened in 1872 and 1878, when Chilean warships seized merchant ships which had been licensed to operate in the disputed area by the Argentine government. An Argentine warship did the same to a Chilean-licensed American ship in 1877. This action nearly led to war in November 1878, when the Argentines dispatched a squadron of warships to the Santa Cruz River. The Chilean Navy responded in kind, and war was only avoided by a hastily signed treaty.
