1885 Chilean-American War

As someone with little knowledge of Latin American history, looking through this thread it seems like what would happen is that Chile would sink the US Navy, probably keep Panama out of American hands, but not really be able to do a whole lot else, especially since the only way to do something after retaking Panama would be to make an action on the US Mainland which is really really really not gonna be fun.
Technically Chile could bombard San Francisco, and interdict all the pacific shipping of the USA, as all of it goes trough San Francisco, but this will not amount to much, especially because a bombardment of San Francisco will send all the USA asking for blood, and as I say in the long run USA will won the war.
An interdiction of the shipping is more effective, as damage the USA economy but don´t kill anybody and put heat on Washington to call a white peace, but this is not really effective
 
Technically Chile could bombard San Francisco, and interdict all the pacific shipping of the USA, as all of it goes trough San Francisco, but this will not amount to much, especially because a bombardment of San Francisco will send all the USA asking for blood, and as I say in the long run USA will won the war.
An interdiction of the shipping is more effective, as damage the USA economy but don´t kill anybody and put heat on Washington to call a white peace, but this is not really effective
So this is one of those "quick victory slow defeat" situations, where if Chile is able to decisively sink the US Navy it could pressure the US to back off from Panama, but if it fails to quickly sink the US Navy or does something stupid and kicks the American hornet's nest, there are likely to be American boots in Santiago?
 
So this is one of those "quick victory slow defeat" situations, where if Chile is able to decisively sink the US Navy it could pressure the US to back off from Panama, but if it fails to quickly sink the US Navy or does something stupid and kicks the American hornet's nest, there are likely to be American boots in Santiago?

Yes is the case, If there an attrition war Chile don´t have strategic deep (remember 2 millions inhabitants), to sustain any loses Chile could do all perfect, don´t lose any combat and still lose because USA could do as Russia against the Finish and win, but that is improbable, there is not public support to these wars.

And no, is not necessary to take Santiago, but if they Take Valparaiso and all is over, but as they say is easier said than done.
 
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Chile might raid the mint in San Francisco at worst or land in Hawaii but I doubt they are quick to risk the wrath of the American giant. An ATL with Chile as an American puppet might be possible were that the case.
 
Sinking the US Navy might actually be doing them a favour and speed up the progress of their New Navy. For example, the two ships that would have been first for the bottom would have been the Shenadoah and Wachusett. These ACW veterans would have been the vessels that would have initially faced the Esmeralda with their muzzle loading smooth bores. As they were both sold off in 1887 anyway, it would have been no great loss (of material). In fact most of the USN still afloat in 1885 was gone by the end of the decade. An outraged US would have clamoured for a larger modern navy much sooner!
 
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