724.3415/4003: Telegram

The Secretary of State to the Ambassador in Brazil (Gibson)

104. Your 169, August 10, 6 p.m. Referring to your Paragraph 1, the Argentine Ambassador here advises the Department that Dr. Saavedra Lamas has obtained a definite acceptance in principle of his conciliation formula by both Bolivia and Paraguay and that he is [Page 170] conferring today with the American and Brazilian Ambassadors in Buenos Aires to discuss procedure with them.

The press statement referred to in your Paragraph 5 was issued late in the evening of August 9, by the Paraguayan Minister for Foreign Affairs according to a cable received this morning from the American Minister in Asunción. The pertinent portions are as follows:

(1)
The Paraguayan Government “maintains in full the statements in its note of August 2, as concerns the neutrality observed by the Chilean Government;
(2)
“That there cannot be given to the note” (that of August 2) “any interpretation in the sense that the Government associates itself with the press propaganda and much less with the attacks of a personal character directed against Chilean personalities which attacks merit the Government’s frank reprobation.”

Point 2 clearly meets the desires of the Chilean Government, but Point 1 is understood to be unacceptable. The Department understands, however, that Dr. Saavedra Lamas believes that he has obtained from President Ayala a conciliatory statement covering the contents of Point 1 which will prove acceptable to the Chilean Government.

In view of the fact that the Paraguayan statement has already been issued and that Dr. Saavedra Lamas is optimistic as to the outcome of his mediation, it would seem preferable temporarily to await developments and for this Government to make no further representations at this time to the Government of Paraguay. Further instructions will be sent you upon receipt of precise information from Buenos Aires.

You may advise the Foreign Office of the above and state that this Government would have been very glad to join with the Government of Brazil in suggesting to the Government of Paraguay that it refrain from the publication of the official statement above referred to, but that the speedy publication of this statement prevents any action in the matter.

Hull