The international community, for the most part, responds well to your apology. You have regained international legitimacy and retaken the moral high ground. However, Bolivia refuses to accept your apology and says that you have committed an act of war. The ultimatum is repeated. You have fifteen days to cede the territory and pay the same or else Bolivia will invade.
|Hold strong||Keep several thousand troops at the Bolivian border, but ensure that they are under strict orders not to engage until further notice. Warn Bolivia again that Peru is prepared to fight to protect its territory, and demand that Bolivia rescind its demands.|
|Ignore the ultimatum entirely||The demands are likely a bluff; the Bolivian President should know that he will lose a war, and will not risk escalating the conflict.|
|Submit to demands||Pay the reparations and give Bolivia the territory. It is not worth risking a war with an unpredictable dictator. Peru might lose a lot more than that if Bolivia launched a war of conquest, and the war effort would likely cost significantly more than the sum Bolivia is demanding.|
|Pre-emptively strike Bolivia||Launch airstrikes against key government and military targets, and send troops to the border to protect against a counterattack. Declare that Bolivia's demands constituted a hostile act, and you were forced to respond militarily to pre-empt the threat and protect Peru's national interests.|