725.34/18: Telegram

The Secretary of State to the Ambassador in Argentina (Weddell)

79. On August 7, the Department was advised by the Argentine Ambassador here of the grave anxiety with which Dr. Saavedra Lamas viewed the threatened rupture of relations between Chile and Paraguay and received the suggestion from him that this Government exert its friendly efforts to prevent such rupture. It was also informed that Dr. Saavedra Lamas was himself making every effort to obtain a solution of the incident satisfactory to both Governments.

Please advise Dr. Saavedra Lamas at the earliest opportunity that [Page 309] on August 8, this Government instructed the American Ambassador in Santiago and the American Minister in Asunción to inquire whether the friendly services of the Government of the United States would be acceptable to both Governments with a view to finding a satisfactory solution of the difiiculty. This Government was advised by Brazil that it was taking similar action and in the instruction sent to the American representatives in Santiago and Asunción they were informed that this Government would be very glad to act jointly with other American Republics should that procedure seem desirable to Chile and to Paraguay.

No response has as yet been received from the Government of Paraguay. The Government of Chile has expressed its gratitude for the offer made by this Government and has suggested that the United States, either acting alone or in conjunction with Brazil and Argentina, persuade Paraguay to make a statement substantially as follows:

  • “(1) Paraguay considers to be unfounded the statements in certain of the Asunción papers regarding the personal activities of the Chilean President, the Minister of Finance, and the Minister for Foreign Affairs;
  • “(2) Paraguay has complete confidence in the fidelity of Chile towards its obligations as a neutral.”

Dr. Cruchaga has intimated that while the first point can easily be obtained, he realized that Point (2) was more difficult and that if the latter was found to be impracticable, he was open minded to any alternative plan which might be suggested.

The Department has learned from the Argentine Ambassador here that at the suggestion of Dr. Saavedra Lamas, the President of Paraguay has instructed his representative in Santiago to convey to the Chilean Government a formal statement covering Point (1). In view of the efficacious efforts of Dr. Saavedra Lamas in this question and in order to avoid any complications which might result from independent action on the part of this Government, the Department would appreciate information from Dr. Saavedra Lamas as to the progress which he may have been able to make covering Point (2) as indicated above, and would likewise be grateful for any suggestions which he might make as to the assistance which this Government might offer in facilitating the return to a normal and friendly relationship between Chile and Paraguay. This Government feels certain that a prompt and satisfactory solution of this incident is essential in order that the Chaco negotiations may not be materially hampered and furthermore that frank and full cooperation between the friendly nations endeavoring to compose the difference between Chile and Paraguay would be highly beneficial.

Hull