SOUTHERN CHILE.—The last of the natural regions of Chile, that which lies within the belt of westerly winds, is, except in the north, unfavourable to the cultivation of cereals. The heavily forested slopes facing the Pacific are believed to contain much valuable timber, which has as yet been little exploited, while many of the sheltered valleys and inland districts are suitable for grazing cattle and sheep. The territory of Magallanes has nearly 2,000,000 sheep, the wool and mutton of which are exported from Punta Arenas, the most southerly town of the world. Valdivia is the port for the agricultural and pastoral products of the northern part of this region.
COMMUNICATIONS.—In Chile there are over 4,000 miles of rail way, partly owned by the State, partly by private companies. Of the former, the most important is that which runs from Puerto Montt, by Santiago, along the Great Valley to La Serena. This railway, which has branches to the various ports on the coast, already mentioned, is being continued northward to Copiapo. It will eventually join the northern part of the " longitudinal railway " which runs from Pueblo Hundido to Pintados. The
trans-Andine line from Valparaiso by Uspallata has been constructed partly by the Government, partly by private companies. The most important of the wholly private lines is that from Anto fagasta to Oruro in Bolivia ; but the chief railways connecting the mining districts of Northern Chile with the coast are also owned by private companies.
COMMERCE.—The principal exports of the country have already been indicated. In 1906-10 they were valued at £22,000,000 per annum, nearly one-half of which went to the United Kingdom ; Germany, the United States, and France coming next in the order given. In the same years the imports were estimated at £20,000,000, and consisted largely of textiles, iron and steel goods, coal and machinery. Over one-third of the imports were from the United Kingdom, and Germany and the United States between them sent a similar amount. The bulk of the imports come to Valparaiso, whence they are distributed throughout the country.