724.34119/721

The American Delegate (Braden) to the Secretary of State

No. 332

Sir: I have the honor to report activity in the Chaco negotiations in memoranda which I have delivered to Assistant Secretary of State Welles.

I transmit herewith, as a matter of record, copies of my memoranda under the following dates: Two of December 18, 1936. Two of December 21, 1936. Two of December 22, 1936. Two of December 23, 1936.68

Respectfully yours,

Spruille Braden
[Page 100]
[Enclosure 1—Extract]

Memorandum by the American Delegate (Braden)

. . . . . . . . . . . . . .

Several times since his arrival in Buenos Aires Castillo Nájera69 has endeavored to sound me out on the Chaco situation. At first I spoke frankly with him but his insistence induced me to be more reserved of late. Therefore, I was interested on Saturday when Finot informed us that shortly after he arrived in Buenos Aires the Mexican Ambassador suggested that his government could bring about a final settlement of the Chaco. Finot replied that he welcomed any assistance but first must be offered a basis for negotiations. Castillo Nájera said he would cable to Mexico City and obtain a satisfactory basis. As a result, on the 18th instant he advised Finot that the Mexican government had consulted with the Paraguayan Minister, Jover Peralta … and that Paraguay exacted as a basis for negotiations Bolivia’s acknowledgement of Paraguayan ownership of the entire occupied area. Finot rejected this proposal and thus terminated the Mexican attempts at mediation.

. . . . . . . . . . . . . .

[Enclosure 2]

Memorandum by the American Delegate (Braden)

Rodrigues Alves will deliver to me this morning his draft “Chaco Resolution” for presentation at the closing session of the M. of P. Conference on Wednesday. His draft will be revised by Nieto and by me before presentation. Brazil undertakes to get a non-mediatory nation, probably Panamá, to present the resolution (Cuba was not chosen because of internal difficulties; also, Rodrigues Alves and Macedo Soares thought that to have the Resolution signed by all delegations would appear to be exerting too much pressure).

Macedo Soares called a joint meeting of the Bolivian and Paraguayan delegations with the Committee of Three this morning but this idea was abandoned since in a talk which Cruchaga and I had with Ramírez yesterday afternoon it was evident that no useful purpose would be served by bringing the two ex-belligerent delegations together until we were more certain of our ground. Ramírez showed [Page 101] that he had not receded from his previous intransigeant attitude despite the favorable report we had received of his conversation with Macedo Soares on Sunday morning. Cruchaga remarked that “he was certain Stefanich would not come to Buenos Aires” and Ramírez concurred with him, at which point the following dialogue took place:

. . . . . . . . . . . . . .

During the above conversation Cruchaga remarked that it would be a great concession and compensation were we to obtain from Bolivia the acceptance of a free port and the relinquishment of all idea of a sovereign port. Ramírez replied that could not be considered as a concession since if there were one thing upon which Paraguay was adamant it was that Bolivia should have no port on the river and that when he, Dr. Ramírez, had said “No” he did not know how to express himself any more definitely on the subject.

Late yesterday afternoon when Drs. Ramírez and Soler again doubted Stefanich coming to Buenos Aires I told them “that as a friend of Paraguay I considered it would be regrettable were he not to make the trip since Finot was on record as having come all the way from Bolivia not for the M. of P. Conference but almost exclusively to discuss the Chaco so that Stefanich’s refusal would appear in a very unfortunate light and be interpreted in the history of the negotiations as unwarranted intransigeance. Paraguay should not permit such a black mark to remain on the record”.

The two Paraguayans said they had not thought of that aspect and would communicate my thought to their Foreign Minister.

[Enclosure 3]

Memorandum by the American Delegate (Braden)

The Peace Conference met this morning, Saavedra Lamas presiding, with the following delegates present: Foreign Ministers Macedo Soares70 and Cruchaga,71 Ruiz Moreno,72 Bunge,73 José Roberto de Macedo Soares,74 Barros Borgoño,75 Nieto del Río,76 Barreda Laos,77 Manini Ríos,78 Martínez Thédy79 and myself.

[Page 102]

1. Telegrams respectively from the Argentine and Brazilian Ministers in Asunción were read advising that Stefanich, together with his wife and secretary, would fly to Buenos Aires tomorrow.

2. Cruchaga Tocornal made an excellent report on the Committee of Three negotiations to date.

3. Nieto del Río stated that Ramírez had told him last night Paraguay would be willing to consider a territorial settlement which gave Bolivia a free port on the river, definite possession of the territory to the north and west of the intermediary line providing the location of that line should be altered to a position 5 kms. east of its present position in the western Chaco, and be made to run along the Parapiti, thus giving the Paraguayans access to the water from that river. I pointed out that the Bolivians never would accept a Paraguayan frontier along the Parapiti and that 5 kms. was not a sufficient distance from the road and the projected Argentine-Bolivian railroad, but that the new frontier should be located at least from 50 to 100 kms. to the east of the present intermediary line.

. . . . . . . . . . . . . .

6. The projected “Chaco Resolution” prepared by Rodrigues Alves and another draft I had made were discussed and merged in one; the final form is now being polished up by Rodrigues Alves. José Roberto de Macedo Soares for some reason insisted that Venezuela should present this Resolution. Without making a point of it I stated that it seemed somewhat preferable that it be done by a smaller country such as Panamá. Later on Rodrigues Alves, who had not been at the meeting, told me that he would endeavor to have Arias present the proposal.

I lunched today with Manini Ríos and Martínez Thédy; among the guests were Zubizarreta, Rivarola and General Estigarribia. The General confirmed to me his conversation with Macedo Soares and appears entirely reconciled to the advisability of an agreement being made at this time, even by the Franco government.

Zubizarreta maintained the present régime did not properly represent the Paraguayan people, therefore, any agreement entered into would later be disauthorized. I had quite a little discussion with him but he finally agreed that it would be perfectly all right to give Bolivia a free port but insisted Paraguay should retain the present occupied territory. I naturally did not mention the cash consideration to him. Rivarola, following Zubizarreta’s lead, reversed what he had told me last Friday with respect to the deportees not making a political issue of the Chaco. Zubizarreta expressed his surprise at what he characterized as “Stefanich’s serious blunder” in coming to Buenos Aires, saying that the Foreign Minister could not afford [Page 103] to go home without some sort of an agreement, and since any agreement made would involve a sacrifice for Paraguay it would be unsatisfactory to the mass of the people and might even involve the fall of the Franco government.

Zubizarreta considered it unwise of the Conference to rush through an agreement now, but did admit that it would be unpatriotic of him to oppose a “fair” settlement even if consummated by his political enemies.

At the request of the Bolivian delegation the Committee of Three is meeting with them at 6:00 o’clock this afternoon.

[Enclosure 4]

Memorandum by the American Delegate (Braden)

Pursuant to Finot’s request for a meeting with Macedo Soares and me we met with him, Alvéstegui, Bomero and Ostria Gutiérrez (former Bolivian Minister in Lima, now transferred to Rio) yesterday afternoon.

1.
Finot commenced the conversation by saying that Secretary Welles had told him that the “Chaco Resolution” would be presented by Panamá and that I could show it to him. Accordingly, we read to him our project of resolution which he approved excepting for a statement in Article I: “that the six American states had established a security system capable of avoiding a repetition of the painful tragedy”. Previously I had suggested the elimination of this phrase but Macedo Soares preferred to have it remain unless the Bolivians objected. Finot was willing to leave it in providing we added certain qualifying expressions. We therefore compromised on its elimination and the draft was approved by him, as per attached copy.80 Finot said this Resolution would satisfy public opinion in Bolivia and convince everyone that the M. of P. Conference had given adequate consideration to the Chaco.
2.
Finot inquired whether press reports were correct in saying that Stefanich had been offered certain bases for discussion. Macedo Soares replied that the bases established for Stefanich comprehended a free port, Bolivian control of the road, and absolute sovereignty north of the intermediary line—the location of a boundary across [Page 104] the Chaco being left open for discussion, and that these bases had been made as a Conference and not a Bolivian proposal.
3.
José Roberto de Macedo Soares reported that he and Bunge had requested Arias of Panamá to submit the “Chaco Resolution”. Arias inquired who had suggested his name and when told I had done so was elated to learn that the suggestion originated with the United States delegation.
4.
President Justo last night made it a point to reassure me once again that we could count absolutely upon his wholehearted support and that we should not hesitate to call upon him in any way that we thought he might be useful.
5.
I met Stefanich at the airport today and requested him to meet with the Committee of Three this afternoon. He apparently was perfectly well and Lafayette reported a smooth trip, but so far no time has been fixed, Ramírez advising that the Minister has not recovered from his air-sickness. I made the appropriate remarks on behalf of Secretary Hull. (Dr. and Sra. Stefanich are at the Plaza Hotel.)

A plenary session of the Conference is scheduled for 11:30 tomorrow in order to receive Stefanich.

P. S. The Committee of Three will meet at 9:30 a.m. tomorrow and receive Stefanich at 10:00 a.m.

  1. Memoranda of December 18, one of December 21, and one of December 23 not printed.
  2. Francisco Castillo Nájera, Chairman of the Mexican delegation to the Inter-American Conference for the Maintenance of Peace; Mexican Ambassador in the United States.
  3. José Carlos de Macedo Soares, Brazilian Minister for Foreign Affairs.
  4. Miguel Cruchaga Tocornal, Chilean Minister for Foreign Affairs.
  5. Isidoro Ruiz Moreno, Argentine delegate.
  6. Ricardo Bunge, Argentine delegate.
  7. Brazilian Third Delegate.
  8. Luis Barros Borgoño, Chilean delegate.
  9. Félix Nieto del Rio, Chilean delegate.
  10. Felipe Barreda Laos, Chairman of the Peruvian delegation.
  11. Pedro Manini Ríos, Uruguayan delegate.
  12. Eugenio Martínez Thédy, Uruguayan delegate.
  13. For text, approved by the Inter-American Conference for the Maintenance of Peace on December 23, see Report of the Delegation of the United States of America to the Inter-American Conference for the Maintenance of Peace, Buenos Aires, Argentina, December 1–23, 1986, p. 255.