724.3415/393

Memorandum by the Chief of the Division of Latin American Affairs (Morgan) of a Conversation Between the Secretary of State and the Bolivian Minister (Diez de Medina) January 22, 1929, and of a Subsequent Conversation Between Himself and the Paraguayan Chargé (Ramírez)

The Bolivian Minister stated that, with regard to the appointment of delegates to the Bolivian-Paraguayan Commission, his Government had encountered difficulty in persuading party leaders to accept this appointment. All those to whom it had been offered so far had refused, but he felt sure that appointments would be made within the next few days.

The Minister said that he had received word about the prisoners. Bolivia held one Paraguayan officer and twelve soldiers prisoners at Villa Montes, and was prepared to exchange them for the Bolivian prisoners in Paraguay—all the prisoners on one side being exchanged for all the prisoners on the other.

The Secretary then asked the Bolivian Minister whether he knew anything about the reported shipments of arms to Bolivia. The Minister said he had no information of this subject, but felt sure that any shipments that might be made were simply ordinary replacements necessary for the army, and were being made not with any aggressive intentions but simply in order that Bolivia might be in a position to defend herself from attack. The Minister pointed out that a nation which is prepared to defend itself is much less likely to be attacked than a defenseless one. The Secretary said that he did not wish to interfere, and naturally had no right to attempt to control Bolivian arms purchases. Nevertheless, he felt that the excessive purchase of arms at this time might have a bad effect on the situation; be far from helping along a peaceful settlement; arouse suspicions and resentment in neighboring countries, and make a settlement more difficult. The Secretary said that we had received confidential information to the effect that Bolivia was importing large quantities of arms from England—some forty thousand rifles, a dozen or more airplanes, and several million cartridges had been mentioned. The Secretary did not know whether this information was accurate; but if it was, the amount seemed [Page 840] excessive in view of the fact that the Vickers’ contract of 1927 had been cut down last summer by £670,000; it seemed as though the contract had either been restored to its first form, or a new contract must have been concluded. The Secretary only wished to make a friendly suggestion, but he did feel that any new large purchases of arms by Bolivia at this time might have a very bad effect on the situation. The Minister said he entirely agreed with the Secretary; he did not have any information as to the arms purchased by his Government, but he would forward the Secretary’s suggestion and remarks to his Government by telegraph, stating that they were merely a friendly suggestion, and he felt sure that such a suggestion would be very well received in Bolivia.

Mr. Morgan subsequently saw the Chargé d’Affaires of Paraguay and asked him about the Paraguayan delegates. Dr. Ramírez said his Government was having great trouble in finding party leaders who were willing to accept. All those who had so far been approached had declined to serve, but he felt sure that the appointments would be made within the next few days.

Mr. Morgan then informed Dr. Ramírez what the Bolivian Minister had said about the exchange of prisoners. Dr. Ramírez stated that he would communicate with his Government at once and ask them to try to find some place where the exchange could take place mid-way between Villa Montes and Asunción, where the Bolivian prisoners were being held.

Morgan