Later that year, the Tory government fell and was replaced by a Whig government in which his friend Lord Brougham was appointed Lord Chancellor. Following a meeting of the Privy Council in May 1832, Cochrane was granted a pardon and restored to the Navy List with a promotion to rear-admiral. Support from friends in the government and the writings of popular naval authors such as Frederick Marryat and Maria Graham increased public sympathy for Cochrane's situation. Cochrane's knighthood was restored in May 1847 with the personal intervention of Queen Victoria, and he was appointed Knight Grand Cross of the Order of the Bath. Only in 1860 was his banner returned to Westminster Abbey; it was the day before his funeral. In 1876, his grandson received a payment of £40,000 from the British government (), based on the recommendations of a Parliamentary select committee, in compensation for Cochrane's conviction. The committee had concluded that his conviction was unjust. Lord Cochrane left the UK in official disgrace, but that did not end his naval career. Accompanied by Lady Cochrane and their two children, he reached Valparaíso on 28 November 1818. Chile was rapidly organising its new navy for its war of independence. Cochrane became a Chilean citizen (unrecognized state), on 11 December 1818 at the request of Chilean leader Bernardo O'Higgins. He was appointed Vice Admiral and took command of the Chilean Navy in Chile's war of independence against Spain. He was the first Vice Admiral of Chile. Cochrane reorganised the Chilean navy with British commanders, introducing British naval customs and, formally, English-speaking governance in their warships. He took command in the frigate and blockaded and raided the coasts of Peru, as he had those of France and Spain. On his own initiative, he organised and led the capture of Valdivia, despite only having 300 men and two ships to deploy against seven large forts. He failed in his attempt to capture the Chiloé Archipelago for Chile. In 1820, O'Higgins ordered him to convoy the Liberation Army of General José de San Martín to Peru, blockade the coast, and support the campaign for independence. Later, forces under Cochrane's personal command cut out and captured the frigate , the most powerful Spanish ship in South America. All this led to Peruvian independence, which O'Higgins considered indispensable to Chile's security. Cochrane's victories in the Pacific were spectacular and important.