File No. 724.3415/21.
Minister Greystad to the Secretary of State.
Montevideo, July 9, 1913.
Sir: Referring to previous despatches1 concerning the Chaco boundary controversy between Paraguay and Bolivia, I have the honor to report that a temporary modus vivendi has been recently established by an agreement which, after prolonged negotiations, was reached between Doctor Eusebio Ayala, then Minister of Foreign Affairs of Paraguay, and Doctor Mujía, the Bolivian Minister in Paraguay.
The agreement, known as the Ayala-Mujía protocol, which is secret, provides that both countries are to maintain the status quo in the Chaco for two years, and that meanwhile the two Governments will negotiate a definite treaty for a final adjustment of the controversy, or a treaty providing for mediation or arbitration.
It would appear that the Ayala-Mujía protocol has not yet been accepted by Bolivia. At the Foreign Office here in Asuncion belief in its ratification is expressed, notwithstanding the uncompromising opposition voiced by such Bolivian newspapers as “El Norte” of La Paz, reported to be the personal organ of General Montes, President-elect of Bolivia.
This paper asserts that “Bolivia is owner and mistress of all territory west of the River Paraguay from Bahia Negra to the Pilcomayo River”, and rejects arbitration as a method of settlement that in the past has proven to be prejudicial to Bolivia.
I have [etc.]
- Not printed.↩