Chapter 5: War and its Causes

Outcome:

The United Nations supports you, and denounces Bolivia's threats. The UN officially reprimands Bolivia and warns the country that an unwarranted invasion of Peru will not be tolerated. However, without any direct action being taken against Peru, the United Nations refuses to enact sanctions or become involved militarily.

What do you do now?

Wait it outSee what Bolivia's next move is. With the support of the international community and the significant military advantage that Peru has, the Bolivian President will likely drop the issue.
Submit to demandsPay 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.
Move troops to the Bolivian borderDo not engage troops in action yet. Tell Bolivia that you are prepared to move on if the issue is dropped, but if Bolivia continues to threaten Peru or attempts to invade, Peru is prepared to act swiftly and decisively.
Pre-emptively strike BoliviaLaunch 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.