724.3415/89
The Minister in Paraguay (Kreeck) to the Secretary of State
[Received April 1.]
Sir: I have the honor to report a conversation which recently took place and in which the Minister of Foreign Affairs spoke concerning the Paraguay-Bolivia boundary question.
After giving a resumé, he stated that Paraguay had suggested to Bolivia that the boundary question be left to the judgment and decision of the United States. Bolivia agreed to the suggestion, but later sent a note to Paraguay suggesting that it would be better for South American countries to settle their own differences and controversies rather than solicit the services of the United States. In this same note from Bolivia it was suggested that Paraguay and Bolivia agree to meet for conference in Buenos Aires, each nation designating a special plenipotentiary to consider the controversy, and, in case these could not agree upon various points, that the decision of the President of Argentina should decide the matters presented to him.
This suggestion of Bolivia was accepted by Paraguay and a date of conference agreed upon. Paraguay sent its Plenipotentiary, but, upon his arrival in Buenos Aires, found, instead of the Bolivian Plenipotentiary, a messenger saying that Bolivia had reconsidered the matter and had decided to send a special plenipotentiary to Paraguay who would adjust the difficulty in Asuncion. This Special Plenipotentiary proved to be Minister Alvestegui. He arrived and began negotiations, but without making any headway whatsoever, whereupon he was transferred, supposedly to Chile.
The Minister of Foreign Affairs then inferred a question, asking if the United States would consider acting as arbitrator. Any direct reply to the question was avoided by suggesting that Bolivia and Paraguay are both members of the League of Nations and that there ought to be the ground for adjustment. The suggestion seemed to give him a matter for consideration.
I made this suggestion for it is my candid opinion the less we have to do with controversies in South American affairs the better. From the records and documents I have examined I am convinced of the justness of the Paraguayan claims; nevertheless, it is my opinion that [Page 532] it would be preferable for other parties to attempt a decision rather than the United States. Our efforts expended upon lines of friendliness and individual helpfulness to these nations will redound to our credit and advantage, but as third parties to controversies, to dissatisfaction, suspicion and disadvantage.
I have [etc.]