724.3415/3942a: Telegram
The Secretary of State to the Minister in Paraguay (Nicholson)
26. The Department has been advised confidentially upon several occasions recently of the very deep concern felt by the Government of Chile because of the increasing friction in the relations between Chile and Paraguay. The Chilean Government is especially disturbed by reason of the transfer of the Paraguayan Minister from Santiago and by the intimation given that no successor will be appointed to replace him.
The Department has discussed the matter informally with the Paraguayan Minister in Washington and has expressed the hope as a close friend of both governments that in a crucial period such as the present, no steps may be taken which would definitely impair the relations between the two governments and that in the interest of harmonious relations and better understanding between all of the American republics, a strong effort be made to find a friendly solution of those questions which have given rise to misunderstanding between Chile and Paraguay.
It is desirable that in your next conversation with President Ayala you express to him informally the very earnest hopes of the Government of the United States in the sense above indicated.