After the close of the Indian campaign, exploration and settle ment proceeded rapidly. Settlement south of the Negro river came from two directions. Colonists from the north followed the coast southward, establishing settlements first at river mouths and then pushing gradually back into the interior. Meanwhile the sheep ranches were pushing northward from the nucleus at Magallanes (Punta Arenas) and by 1896 had reached the Santa Cruz river. In the north along the eastern border of the Andes, at Lake Nahuel Huapi, in the upper valleys of the Limay and Neuquen rivers, and northward far beyond the limits of Pata gonia, Chilean colonists (mainly of mixed white and Araucanian blood, but with some Germans from the Llanquihue colonies) began to settle at an early date. The migration from Chile prob ably originated in the practice of the native inhabitants as well as of the European settlers in the Chilean lake region of driving their cattle back and forth through the passes of the Andes following the pasturage seasons. It is believed that Jesuit mission aries had established themselves in the region as early as the latter part of the 16th century. A number of villages, of which San Martin de los Andes and Junin de los Andes in the southern part of the Territory of Neuquen and Chos Malal in the northern part are the most important, have developed in this section in the wider of the lake basins or river valleys. The Zapala ranch at the end of the Southern railway of Buenos Aires is the railhead for all of these mountain villages.
Previous to the campaigns against the Indians the permanent settlers from Chile held their concessions from the Indian chiefs. They increased rapidly until 1890 when the Argentine Government closed the frontier for a five-year period. After the Chile Argentine boundary dispute had been settled the Chilean Govern ment attempted to get the Chilean settlers back to lands in the Chilean lake region, but there is still a very large Chilean element in the population of the region. The first Argentine colonists in
this section, except the Welshmen from Rawson who established themselves in the 16 de Octubre valley as early as 1886, came from Mendoza and San Juan. They were followed after 1890 by settlers of many nationalities and particularly by foreign land companies whose first concessions in Patagonia were located along the Negro and Neuquen rivers. It is in this northern section along the lower slopes of the Andes between the headwaters of the Chubut and Neuquen rivers that the most varied resources of Patagonia are to be found. Wheat, rye and potatoes are grown on irrigated lands on the valley floor, not only for local con sumption but to some extent for export. Considerable gold has been placered along the Neuquen river and there has been some exploitation of the timber resources for local needs although many of the forested areas have been destroyed by fire. In the Andean zone of abundant rainfall sheep do not do well and it is there that the cattle-raising industry of Patagonia is concentrated. As one goes eastward into drier regions one finds sheep-raising combined more and more with cattle-raising until on the truly arid table-land cattle give way entirely to sheep. Here and there along the Negro and Chubut rivers the raising of farm crops is practiced under irrigation in limited areas while some favourably located ranches on the table-land have small areas planted with forage crops for the horses that are used on the ranches. Dams constructed on the upper Neuquen now permit the regulation of the flow of water for irrigation purposes to the Cuenca Vidal depression and agricultural villages surrounded by fields of grain, alfalfa and grapes are rapidly developing there.