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The Minister in Bolivia (Des Fortes) to the Secretary of State
[Received 7:05 p.m.]
10. Bolivia has received through the League Commission a Paraguayan proposal which is summarized by the Foreign Minister as retirement of troops to Paraguayan railhead and Fort Ballivian respectively, policing of evacuated region by Paraguay, agreement not to purchase war material, and probable consideration of arbitration.
A Presidential council was held this morning and the Bolivian reply is being studied and will be sent to Buenos Aires within a few days to the effect that an agreement to arbitrate must be the first consideration not security measures as proposed by Paraguay.
Repeated to Asunción, Buenos Aires.