Economy of Peru to respond to the sudden massive Chilean invasion. In Bolivia's capital La Paz top Bolivian authorities were outraged, and so announced that a state of war existed, thus invoking its 1873 secret military alliance treaty with Peru. Bolivia called on Lima to activate their secret mutual defense pact, while Chile waited for Peru to respond to Bolivia's demand and see if Peru declared its neutrality or not. However, Peru's Prado president and his top officials were warned by the Peruvian military that if Peru declared its neutrality, Chile will use this statement to convince Bolivia to jointly declare war on
Mineral industry of Peru No. 868 of May 1996 (Texto Unico Official) provide guaranteed protections to mining ventures and contracts under the Peruvian Civil Code. Consequently, such ventures and contracts are immune from unilateral changes by any governmental authority in Peru without an appropriate legal or administrative remedy or arbitration by the Convenio Constitutivo del Centro Internacional de Arreglo de Differencias Relativas an Inversiones (Formal Consent of the International Center for Settlement of Relative Differences on Investments). Additionally, Peru enacted the Supreme Decree No. 047-2002-EF of April 2002 (import duties for capital goods) to reduce the duties paid to 7% from 20% and 12%