724.3415/959 supp.: Telegram
The Acting Secretary of State to the Minister in Paraguay (Kreeck)
5. Department’s 1, January 6, 5 p.m., and 4, January 27, 6 p.m.33 Paraguayan Chargé d’Affaires showed Department today a telegram from his Government stating that it could not agree to the Uruguayan formula because it would create a very bad precedent if Paraguay should accept something that Bolivia wanted in order that Bolivia might accept some other suggestion. To do this Paraguay would continually have to give up its position on the theory that otherwise Bolivia would not cooperate in bringing about a settlement. You will please point out to the Minister for Foreign Affairs that this Government first suggested the acceptance of the Uruguayan proposal on January 6, and that the present supposed outbreak in the Chaco did not take place until January 20,33a hence there could be no connection between the two.
The Department suggested the acceptance of the Uruguayan proposal because it felt that that proposal offers a practicable solution of the difficulty; that a refusal to carry it out would bring about an impasse in the execution of the conciliation agreement signed by both Paraguay and Bolivia on September 12, last. Bolivia having accepted the Uruguayan suggestion, a refusal on the part of Paraguay might make the latter appear as refusing to carry out the conciliation agreement duly signed by it. Department therefore hopes that the Paraguayan Government will see its way clear to accepting the Uruguayan proposal. Please report by cable.