Panama (1538), Guatemala (1544, as Audencia de los Confines), Manila (1583), and Guadalajara (new Galaicia) (1549) Thus it controlled Mexico, the Spanish Caribbean, Central America, and the Philippines The Viceroyalty of Peru included the Viceregal Audencia of Lima (1542), the Audencias of Santa Fé de Bogotá (New Granada) (1549), Chile (1609), Buenos Aires (1661–71), Characas (1559), and Quito (1564) The audencias were further divided into provinces Strictly speaking the two viceroyalties held the same position as the kingdoms of Valencia, Catalonia, Aragon, León, and Castile All colonial matters since 1524 had been decided by the Royal and Supreme Council of the Indies, and this process continued until 1714 when most functions were assumed by the Ministry of Marine and the Indies, although the council remained in existence until 1834 The Bourbon rulers in Spain always felt that their American colonies could deliver more in tax revenue Philip V (r 1700/01–1724, 1724–46) started a campaign to reorganize the administration, assume greater control, and increase trade One of the greatest handicaps to trade with South America was that goods from Spain to the Americas had to go through Lima This led to emerging centers for contraband The most important of these was the town of Colonia, founded by the Portuguese in 1680 on the east bank of the Río de la Plata (River Plate), directly opposite Buenos Aires From there Spanish, Portuguese, and British goods were smuggled across the river while the city authorities in Buenos Aires proclaimed themselves helpless to deal with the problem Sailing Regulations In 1720, measures were introduced to regulate the sailing of ships to remove the need for people to buy smuggled goods During the 1720s and 1730s, there was a rebellion in Paraguay with settlers attacking the Jesuit privileges The religious order had established communes (known as reductions) in southern and eastern Paraguay and the low prices of their crops undercut many small farmers The Communero Revolt saw many farmers march on Asunción and the governor, José de Antiquera, refuse to accept a new governor sent from Lima However the rebels were ousted by Indian levies from the Jesuit reductions A force from Buenos Aires arrived in 1724, and two years later Antiquera was captured At the same time there was also a small rebellion among the Araucanian Indians in southern Chile In 1736–37, there was also a small rebellion led by Juan Santos with Indians rebelling Bourbon dynasty in Latin America 45 against harsh conditions in mines in central Peru The rebels damaged the city of Oruro but then dispersed A more serious conflict broke out in 1735 when the Spanish took advantage of being on the opposite side to Portugal in the War of the Polish Succession A small Spanish force from Buenos Aires captured Colonia, but two years later the British persuaded them to return it The task of reforming the colonial administration was left to Philip V’s successor, Ferdinand VI (reigned 1746– 59) He established the Viceroyalty of New Granada in 1739 with a viceroy taking up the position in the following year However the Anglo-Spanish War of 1739–48 (known in England as the War of Jenkins’ Ear) initially hampered links between Spain and its colonies Further attempts were made to reduce smuggling but too much was at stake, especially in Buenos Aires, where people still objected to goods’ having to be shipped through Lima In the Treaty of Madrid of 1750 the Portuguese finally agreed to hand over Colonia, in return for taking the region of the Upper Paraná When some Jesuits refused to hand over the latter, Portugal sent in soldiers who easily drove back the lightly armed Indians in the Jesuit reductions As it felt that Spain had not honored its side of the treaty, the Portuguese held on to Colonia This caused Charles III of Spain to annul the treaty in 1761 and send in soldiers, who finally captured Colonia in 1762 Smuggling, however, continued Seven Years’ War The Seven Years’ War (1756–63) resulted in a humiliating defeat for Spain It had stayed out of the war for the first three years, and when in 1760, it entered the conflict, the British attacked the Philippines and Cuba, taking both territories Spain did manage to take most of the Banda Oriental (now Uruguay) Both the Philippines and Cuba were returned at the Treaty of Paris at the conclusion of the war, but Spain conceded Florida to the British The easy losses that Spain sustained at the hands of the British illustrated the military vulnerability of Spain’s American colonies King Charles III (r 1759–88) decided to push ahead with further administrative reforms One of the first measures was to increase taxes to help pay for the costly and futile involvement in the Seven Years’ War In 1765, people in Quito rioted The colonial administration held firm, and in 1776 Charles III created the Viceroyalty of Río de la Plata, with a viceroy taking up the position in 1778 It covered modernday Argentina, Bolivia, Chile, Paraguay, and Uruguay and eroded further the power of the Viceroyalty of Peru This move followed a delineation of the land boundary