724.3415/4020: Telegram

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

176. Bolivian Minister today left memorandum at Foreign Office stating his country makes Paraguayan recognition of Bolivian zone on Paraguay River (from Bahía Negra south) a fundamental condition precedent to acceptance of formula. In other words they want to add an eighth point to formula.

Memorandum adds that Bolivian Government understands hostilities shall cease immediately on acceptance of all points by both countries.

Minister for Foreign Affairs is telegraphing Brazilian Ambassador at Buenos Aires expressing annoyance at the apparent discrepancy between statements made by Saavedra Lamas to the mediating countries on the one hand and the contending countries on the other hand, a course which may lead to serious complications. Ambassador is instructed to confer with Weddell with a view to concerted action in urging Saavedra Lamas to exert pressure on Paraguay to adhere to previous acceptance of formula.

Minister for Foreign Affairs would value an expression of your views on this subject and on the attitude to be adopted in dealing with Bolivia’s demand.

Repeated to Buenos Aires.

Gibson