723.2515/2543: Telegram

The Secretary of State to the Ambassador in Italy ( Fletcher )

[Paraphrase]

60. Should Ambassador Villegas again approach you in regard to the matter which you have reported to the Department, you are informed that Chile broke off negotiations immediately after General Lassiter’s decision on June 14; the Chilean Government thereupon undertook, without either my knowledge or approval, separate negotiations with Bolivia. Later on I was advised of these negotiations by the Chilean Ambassador here, but within last few days I have learned that these Chilean-Bolivian negotiations have broken down. I have in the meantime been informed that Peru has not undertaken any separate negotiations with Bolivia, but that Government of Peru is ready to resume negotiations under my good offices. The Chilean Ambassador has strongly indicated his Government’s desire to resume negotiations under good offices, but no definite official step has been taken yet. Last week the Bolivian Minister notified me that his Government would not make any separate arrangement with Chile, but held view that solution would have to be reached through cooperation of Chile and Peru with Bolivia under the good offices of the United States. There is where matter stands for the present. …

Kellogg