Bolivia Declares War

On March 1, 1879, Bolivia declared war on Chile, ordered the expulsion of all Chileans and placed an embargo on their property. This was telegraphed around the world with the purpose of reducing Chile's access to arms, boats and military weapons. Because of treaty obligations, Peru aligned with Bolivia, but requested mediation.

A Brooklyn newspaper article cites a circular sent to diplomats abroad by Señor Balmaceda, then Chilean Secretary for Foreign Affairs. The article claims that immediately after the declaration of war, 16,000 Chileans were expelled from Peru and Bolivia in such haste that they had no way to return to Chile, that they took refuge in British ships and launches, and their property was seized and confiscated. (Brooklyn Daily Eagle, Jan 30,1882 p. 2)

An apparent Peruvian, but anonymous, source (1882) wrote in this regard, roughly translated, that the only act of hostility employed by Peru was limited to the expulsion of Chilean day laborers, whose numbers had reached 16,000 in Taracapá (sic) and 30,000 in the rest of Peru, and were a constant menace even in times of peace. The source goes on to say that Peru, in her generosity, offered passage for hundreds of these day laborers, which only helped to serve Chilean plans by providing additional recruits for their military forces.

Resources
Anonymous, 1882. Passage from “Historia diplomatica de la Guerra del Pacifico.” IN Nueva revista de Buenos Aires. Edited by Vicente Gregorio Quesada and Ernesto Quesada. Year 2, Volume 4. pg 180-181. Link: Nueva revista de Buenos Aires By Vicente Gregorio Quesada, Ernesto Quesada
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Author's Note:
I have received a comment that the statement that Peru or Bolivia might have taken steps to expel 16,000 Chileans might not be true. I have since been able to locate an apparent Peruvian source that in part corroborates the expulsion. I have edited the article to more clearly reflect the possible bias of each presentation.