724.3415/4122: Telegram

The Secretary of State to the Minister in Paraguay (Nicholson)

36. Your 42, September 14, 9 a.m. The information contained in your cable has been highly useful to the Department.

Please obtain, as soon as may be possible, an interview with President Ayala. You should state that this Government would welcome a frank statement of the position of the Government of Paraguay both with regard to the situation which has now developed at Geneva and more specifically with regard to the suggestions made by Bolivia for modification of the Argentine conciliation formula.

With reference to the former question, you should point out that because of the fact that for the past 6 months, the League has refrained from taking any active part in furthering peace in the Chaco, the Government of the United States strongly supported the Argentine peace initiative and has consistently and loyally cooperated with Brazil and Argentina and the two belligerent nations in endeavoring to find a satisfactory ground for adjustment. It has been a matter of particular gratification to this Government that its participation in the negotiations has been so welcome to the Government of Paraguay, Notwithstanding the material difficulties which have been encountered [Page 212] during the course of negotiations, this Government believes that the negotiations had progressed in a satisfactory manner and that the prospects for a successful outcome were bright. Consequently, the Government of the United States will continue in the present negotiations provided Paraguay and Bolivia desire such continuation. It is understood that the attitude of the Government of Brazil will be the same. From a statement recently made by the Argentine Minister for Foreign Affairs, it is understood that it is the strong desire of the Argentine Government that the common front of the tri-partite mediation should not be abandoned.

You should then make it clear that while this Government throughout the past year, and notably at Montevideo, has demonstrated an attitude of helpful cooperation towards the activities of the League Committee and does not desire to disparage or minimize in any manner the activities of the League, it believes that under present conditions the solution of the Chaco dispute can more readily be attained through the cooperation of some or all of the American Republics.

You may then state that this Government has not as yet been afforded an opportunity of knowing precisely and specifically what the attitude of the Paraguayan Government may be with regard to the Bolivian suggestions for modification of the conciliation formula. You may say that President Ayala’s expressed desire for peace and for guaranties against the renewal of war is, of course, the objective which all of the powers taking part in the present negotiations are seeking, and it is for that reason that this Government believes a clear statement of the feeling of the Paraguayan Government regarding the Bolivian proposals would help materially to clarify the situation and enable the mediating powers to exert their utmost endeavors to find a common ground acceptable to both belligerents. This Government believes that the bases proposed in the Argentine conciliation formula possess the great advantage of making it possible for Bolivia and Paraguay to attempt through conciliation conversations, under the auspices of the friendly powers counselling with them to ascertain whether peace may be obtained through direct negotiations, and, in the event that that should, unfortunately, prove impossible, as the result of prior agreement, to submit the dispute to arbitration. Necessarily, there must be divergent opinions between the two belligerents as to certain technical features of this general proposal and it is, of course, the duty and the obligation of the mediating powers to lend their assistance in solving the questions which so arise. A clear statement of the position of the Government of Paraguay at this time for the confidential information of this Government would enable the United States to make further efforts to exert its influence in a friendly and helpful manner.

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For your strictly confidential and personal information. The Department cannot see any particular benefit at this time to be derived from the suggestion advanced to you by President Ayala and reported in the next to the last paragraph of your cable. The Bolivian Government has already indicated its unwillingness to cease hostilities until it is assured of an arbitral agreement. Furthermore, the plan proposed would again bring up for discussion the “security” required by Paraguay. If Paraguay sincerely desires to resort to arbitration in the event that direct negotiations prove impossible, she should be willing now to indicate clearly and precisely what form of arbitration she will accept.

Hull