These memoranda are sent in duplicate only, as copies have already
been furnished the Secretary in Santiago.
[Enclosure]
Memorandum by the Ambassador in
Argentina (Weddell)
During the course of a formal call made on the President and the
Minister for Foreign Affairs of Argentina on December 28, the
latter named official handed to the Secretary of State a
memorandum, copy of which is attached, containing suggestions
from the Commission of the League of Nations looking to a
settlement of the Chaco problem. At this time it was arranged
that the Secretary of State should call on the President and the
Minister for Foreign Affairs the following morning, primarily to
discuss this matter. The Secretary was accompanied by Ambassador
Weddell and the Commercial Attaché,
[Page 33]
Dr. Dye. The interview took place in the
Casa Rosada and lasted about one hour and a quarter; the
conversations were carried on in an atmosphere of unusual warmth
and cordiality.
The Minister for Foreign Affairs, Dr. Saavedra Lamas, stated that
Mr. Buero, Uruguayan representative on the League of Nations,
was then in his office and that President Terra of Uruguay hoped
Secretary Hull and President Justo would support the League
efforts to secure an extension of the existing armistice. The
President remarked that he and his Government had already done
everything in their power to promote peace but that he felt
embarrassed at attempting to exert further pressure on the
Paraguayan authorities for fear he would rather weaken his own
influence with them. He added that it was not true that the war
party was in control in Paraguay or that President Ayalá does
not wish to grant an extension of the armistice.
The Secretary inquired if the Bolivians were not in accord with
the views set forth in the attached memorandum and if they would
not send troops back to the mines or to farms except 6,500 to be
left for police purposes. The President appeared to assent to
this.
The Secretary remarked that both Governments were saying to
United States representatives the same thing, that the other
Government is taking advantage of the armistice with the idea of
continuing the warfare. He added that after “running over” the
Bolivians at President Terra’s house, the Bolivians seemed to
have been entirely agreeable to the suggestions then made.
The Secretary stated that in his opinion the only point in the
League proposal to which the Paraguayans could reasonably object
was the reference to a port. He stated that he thought that to
send a military representative from each Government into the
country of the other as representative of the League Commission
would assure the good faith of both parties; that any variation
thereafter would tend to outlaw the offending nation.
Dr. Saavedra Lamas then stated various points in the controversy
as he understood them:
- (1):
- General Estigarribía is not in opposition to his chief
or to his President in his attitude concerning the
armistice.
- (2):
- President Ayalá wants peace.
- (3):
- Public opinion in Paraguay is bringing pressure on the
President, and the people desiring security for the
future.
- (4):
- The League Commission understands what is the position
in Paraguay of the President.
- (5):
- President Ayalá prefers that the economic question be
recognized and considered in a conference to be called
by the Pan American Union.
- (6):
- In this way the population of the two countries will
be satisfied.
- (7):
- A meeting of boundary experts under the auspices of
the Pan American Union: the important question is when
can boundary experts get together. In his opinion such
an arrangement would meet the situation.
This was the main point; concerning the other matter—an
international loan—he had not made up his mind. President Justo
interrupted here to say: “We would be favorable.”
Saavedra Lamas continued that there was the matter of the
appointment of financial experts for the handling of a loan and
looking to the development of certain natural sources of
wealth.
The Secretary remarked here that a time beyond any armistice
period would be necessary. Saavedra Lamas appreciated that.
Saavedra Lamas remarked that arbitration must come and also
security. The Secretary suggested why not put into the project
the idea in general of an economic conference and leave out the
matter of ports. To this the Minister replied, “That is the best
way.”
The Secretary continued that now is a time which may not occur
over long years in which to end the conflict. In view of the
character of the territory, he continued, neither country could
bring the war to a final end in years. To this the President
said: “We both agree.”
The Secretary then said that Generals flushed with victory make
military sentiment look like public opinion, and added that if
Paraguay can be made satisfied with the suggestion of the League
Commission to send military experts there, that would meet the
situation for the moment. There would then be no cause for not
agreeing to arbitration and sending back the armies to be
disbanded. Then would come agreement in principle on arbitration
which has been suggested and would work out future relations. He
continued, “I think we should all insist to them that they
accept this idea.”
Dr. Saavedra Lamas here remarked that take out the port matter
and put in the question of economic security and Paraguay would
accept.
The Minister then asked when the Secretary would be in
Washington, to which Mr. Hull replied that he expected to be
there January 23. Saavedra Lamas then asked if it would be
possible to call the Economic Conference in two months.
Saavedra Lamas stated that the first matter to be solved is the
question of financial security and added that he had told
President Terra nothing could be done for the moment in the
matter in advance of the matter of financial arrangements. He
continued that in Argentina it is not a matter of needing money,
but the question would have to be taken up with construction
experts here to carry out the plan.
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The Secretary remarked that the President of the League
Commission should bring pressure on Paraguay, adding that public
opinion would be against a country that did not meet this; that
he had told this to Bolivia, in fact had told both sides. That
he felt sure the Argentine Government would not overlook
anything, but if a solution is not found now, it never will be
found.
Dr. Saavedra Lamas then proceeded to outline the situation as he
saw it, as follows:
- (1):
- Arbitration is feasible.
- (2):
- The nature of the security Paraguay is to receive, and
that is feasible.
- (3):
- In order that arbitration may be feasible, there must
be this Economic Conference.
- (4):
- Paraguay and Bolivia ought to ask the boundary
countries if they are agreeable to this economic
plan.
- (5):
- ?
- (6):
- Nothing in this for the United States to do save that
a financial expert will be needed.
The Secretary then expressed his admiration of and thanks to the
President and Minister for Foreign Affairs for the interest they
have taken in this matter, and added, “The moral effect of
stopping this war would be immense in this hemisphere and in
Europe.”
Dr. Saavedra Lamas then stated that he wished to take up a second
chapter. He expressed his pleasure in the Secretary’s visit,
said that he regretted taking up material things at a time like
this; that he was sorry the Secretary could not see more of
Argentina.
The Secretary said that he was making a careful study of
Argentina and of its resources and stressed the opinion that
there should be a bilateral treaty between the two
countries;5 that from the
standpoint of the United States in these matters, it was
necessary to act very slowly.
Dr. Saavedra Lamas remarked that if they could make a treaty with
only a few and relatively unimportant articles in it, that would
help a great deal. It would mark a beginning.
The Secretary remarked again that it was necessary to go slowly
but that with great leadership at this end and leadership at the
other end, working in harmony the future should be bright.
The interview closed in an even added atmosphere of warmth and
harmony over that which marked its beginning.