In 1874, the elderly president signed with Chile a treaty that freed all Chilean citizens and companies from any taxes for the exploitation of Bolivian resources in the Pacific coast. A reciprocal agreement liberated Bolivian concerns of similar taxes in Chile, but in reality the Chilean investment in the Bolivian Litoral was extensive while Bolivia's economic presence in Chile was negligible. For this reason, it is considered to be an agreement contrary to Bolivian interests. Its annulment by the successor government proved to be the touchstone of the disastrous War of the Pacific.