The Germans came forward, and Argentina and Chile, both of whom were swollen and fat, saw that there were steps to go down, and immediately expressed their willingness to accept mediation. After all, the white-hot arms race between the two countries at this time is no longer a rational national defense need, but the result of the government's hegemony mentality, the pressure of the domestic people, and the promotion of foreign business forces

In order to show its sincerity, the Argentine government first decided to accept the German offer, suspended the purchase of two 15,000-ton battleships in Germany, and put two armored cruisers under construction on the shelves.

Seeing that the Argentines had given up on continuing to expand their army, the Chileans immediately responded by accepting only the protective cruiser Chacabco and three destroyers built in Germany, and abandoning the two Freedom-class 2nd class battleships built in Britain, which were also put up for sale.

The territorial dispute between the two countries was led by the Germans, with the participation of the United States, and resolved by an arbitration committee chaired by Buchanan, the U.S. minister to Bolivia. The Commission eventually negotiated a final border between the two countries, recognized Chile's claim to the strait, and divided Tierra del Fuego equally between Chile and Argentina.

The two countries signed the agreement, two months later than in history, which provides for a negotiated settlement of the border dispute, mutual disarmament and the elimination of hostility. Subsequently, the two parliaments ratified the treaty, and the two countries signed disarmament