724.3415/688

The Chairman of the Commission of Inquiry and Conciliation (McCoy) to the Delegations of Bolivia and Paraguay51

Excellencies: Under date of July first of this year, Your Excellencies were good enough to transmit to me the authority granted by the Government of Bolivia (Paraguay) to the neutral members of the Commission of Inquiry and Conciliation, Bolivia and Paraguay, Commissioners for Mexico, Colombia, Uruguay, Cuba and the United States of America, to prepare and submit, in a friendly spirit, such plans for the settlement of the fundamental question between Bolivia and Paraguay (Paraguay and Bolivia) concerning the Chaco, as they might think appropriate in order to prevent new conflicts and to establish conciliation on firm and permanent bases. The reply of Your Excellencies and that of Their Excellencies the Commissioners for Bolivia (Paraguay), together with my identical notes acknowledging receipt thereof on behalf of the neutral members, were read into the Minutes of the Plenary Meeting held by the Commission on July 2.52

After careful consideration of the problem with the interested Delegations, and their respective statements concerning the matter, we, the neutral Commissioners, have reached the conclusion that it is not possible, at the present time, to reconcile the divergent viewpoints of the parties to the controversy through a formula for direct settlement, and they have empowered me to submit to Your Excellencies the draft of a “Convention of Arbitration” and of a “Supplementary Protocol”, attached hereto, with the request that you [Page 875] be kind enough to bring them to the attention of your Government, for appropriate decision.

In view of the fact that, as provided in the Protocol of January 3, 1929, the term for the work of the Commission will come to an end on September 13, we, the neutral Commissioners, express the hope that the Government of Bolivia (Paraguay) will be kind enough to transmit to us its decision with regard to the drafts attached hereto, as soon as may be possible.

I avail myself [etc.]

Frank R. McCoy
[Enclosure 1]

Proposed Convention of Arbitration

The Governments of Bolivia and Paraguay (Paraguay and Bolivia), represented in the Commission of Inquiry and Conciliation, Bolivia and Paraguay, established in the Protocol signed by their Plenipotentiaries January 3, 1929, desirous of promoting the final settlement of their controversy regarding the Chaco Boreal, have decided to effect the Convention of Arbitration which has been submitted to them by the neutral members of the Commission, to wit:

His Excellency Frank R. McCoy, Commissioner for the United States of America and Chairman of the Commission;

His Excellency Fernando González Roa, Commissioner for Mexico;

His Excellency Raimundo Rivas, Commissioner for Colombia;

His Excellency Guillermo Ruprecht, Commissioner for Uruguay, and

His Excellency Manuel Marquez Sterling, Commissioner for Cuba, for which purpose they have appointed as their Plenipotentiaries the Commissioners for Bolivia, His Excellency Dr. David Alvéstegui and His Excellency Enrique Finot, and the Commissioners for Paraguay, His Excellency Dr. Enrique Bordenave and His Excellency Dr. Francisco C. Chaves, respectively, who, after having deposited their full powers, which were found in good and due form, have agreed on the following:

Article I

The Republics of Paraguay and Bolivia submit to arbitration the juridical difference, of a territorial nature, as contended by the first, and of boundaries, as contended by the second, which exists between both nations with regard to the Chaco Boreal.

Article II

Within a month, to be reckoned from the time of exchange of ratifications of the present Convention, each of the High Contracting [Page 876] Parties shall appoint two Arbitrators, of whom only one may be its own national, and shall agree to the designation of a fifth Arbitrator, who shall be the President of the Court. In default of this agreement, each Party shall designate a member of the Permanent Court of Arbitration at The Hague, not its own national, and the two so appointed shall immediately select a fifth Arbitrator hereinbefore mentioned.

All the designations referred to in this Article shall be bestowed upon citizens of any of the Republics of America.

The Court shall meet, for the purpose of its installation, one month after the fifth Arbitrator has been appointed.

Article III

The High Contracting Parties shall formulate by common accord a special agreement which shall clearly define the particular subject matter of the controversy.

Article IV

Should the High Contracting Parties fail to reach an accord on the agreement referred to in the preceding Article within a term of three months to be reckoned from the date of the exchange of ratifications of this Convention, the agreement shall be formulated by the Court within the three months following. The Court shall determine the form in which it will hear the Parties before formulating the agreement.

Article V

It is agreed that, in any event, the following provisions will be included in the formulation of the agreement:

(a)
The territory adjudicated to Paraguay by the Award of President Hayes,53 is excluded from the province of the Court.
(b)
In any case and whatever may be the arbitral decision, there shall be adjudicated to Bolivia the port of Bahía Negra, on the Paraguay River, and the territorial extent that the Court may consider appropriate for the free use and protection of said port.
(c)
The Court shall decide ex aequo et bono all those points which could not be decided by the express application of the terms of the agreement or of principles of law.

Article VI

Should the Court render the decision referred to in Article IV, the members constituting it shall cease in their functions; the provision [Page 877] in the foregoing clause shall not be so construed as to prevent the later reappointment by the High Contracting Parties of one or more of said members to the Court.

Article VII

The Court shall adopt the provisions concerning nationality and rights acquired by lawful title, by individuals or corporations, national or foreign, in the territory under dispute which might be affected by its Award.

Article VIII

The High Contracting Parties agree on the city of . . . . . . . . . as the seat of the meetings of the Arbitrators and of the operation of the Court; they also empower the Court to change its seat, whenever it may deem advisable to so decide.

Article IX

The Court is authorized to appoint, from its first meeting, a Secretary and such Staff as it deems indispensable for the discharge of its duties.

Article X

In case of death, resignation or incapacity, of one or more of the Arbitrators, and in the case provided for in Article VI, vacancies shall be filled in the same manner as the original appointment.

Article XI

The High Contracting Parties shall be represented before the Court by Agents who may be assisted by such counsel and experts as they may deem necessary.

Article XII

The decision containing the agreement referred to in Article IV, and the Award fixing the subject matter of the controversy, as set forth in Article I, duly pronounced and notified to the Agents, and in lieu thereof to the Governments, shall be final.

Article XIII

The differences which may arise with regard to the interpretation and execution of this Convention and of the decisions of the Court, shall be submitted to the Court itself.

[Page 878]

Article XIV

The expenses incident to the arbitration shall be borne equally by both High Contracting Parties; each contending Party shall defray the expenses connected with the Arbitrators and the Staff of its exclusive appointment.

Article XV

Should the Court be unable to establish a majority of votes, the opinion of the President of the Court shall prevail; but if the scattering of votes were to take place in connection with the decision referred to in Article IV or in connection with the final Award, a new vote shall be taken after the respective Agents have been heard on the point at issue.

Article XVI

The Court is empowered to adopt and amend its own rules of procedure by a majority vote of the Commission.

Article XVII

The terms established in the procedure, with the exception of those pertaining to the organization of the Court, may be extended, if necessary, by a simple exchange of notes between the High Contracting Parties.

Article XVIII

Each High Contracting Party undertakes not to carry out any hostile action against the other as long as the present Convention is in force.

Article XIX

The President of the Court shall advise the High Contracting Parties as to the measures of a military nature intended to avoid all kinds of hostilities.

Article XX

The present Convention shall be signed in nine original copies which shall be deposited in the Departments of Foreign Affairs of the nations constituting the Commission of Inquiry and Conciliation, Bolivia and Paraguay.

The High Contracting Parties agree to effect the exchange of ratifications of the present Convention, with the least possible delay, through their diplomatic representatives accredited in Washington, who will communicate the respective Act and the instruments of ratification, in a joint note, to the Department of Foreign Affairs of the neutral countries represented in the Commission.

[Page 879]

In witness whereof, the Plenipotentiaries of Bolivia and Paraguay (Paraguay and Bolivia) have signed the present Convention in nine copies, and have hereunto affixed their seals, under the auspices of the Commission of Inquiry and Conciliation, Bolivia and Paraguay, whose members also have set their hands and seals thereto.

Done in the City of Washington, District of Columbia, United States of America, this . . . . . day of the month of . . . . . . ., 1929.

[Enclosure 2]

Proposed Supplementary Protocol

Whereas the Governments of Bolivia and Paraguay (Paraguay and Bolivia) have signed today in this City of Washington a Convention of Arbitration, under the auspices of the Commission of Inquiry and Conciliation, Bolivia and Paraguay, their Plenipotentiaries have agreed upon the following supplementary Protocol which shall be considered as an integral part of said Convention:

Article 1. The High Contracting Parties agree to extend the life of the present Commission of Inquiry and Conciliation, Bolivia and Paraguay, until the moment of the installation of the Court, for the purpose of deciding the differences which may arise between the Parties concerning the interpretation of the Convention and such other measures of conciliation as it may deem pertinent. The Commission shall recess, and during this period all decisions may be taken by mail or by cable, the Secretariat General to poll the votes and to make an official record of the decisions in such case.

Article 2. The High Contracting Parties will bear an equal share of the expenses of the Secretariat General, the organization thereof to be determined by the Chairman of the Commission of Inquiry and Conciliation, Bolivia and Paraguay.

Article 3. The Chairman may call a meeting of the Commission if conditions so require.

Article 4. The High Contracting Parties agree that upon the issuance of the Award by the Court they shall proceed to organize a Delimitation Commission composed of three expert topographical engineers or surveyors, one of whom shall be appointed by the Bolivian Government, one by the Paraguayan Government, and the third, who shall be the President of the Commission, by the Geographical Society of (Buenos Aires, Rio de Janeiro or New York), to determine the course of the boundary line in accordance with the provisions of the Award. The President of the Commission shall not be a national of either High Contracting Party.

Each High Contracting Party and the Geographical Society appointing a member of the Delimitation Commission shall appoint a [Page 880] Deputy Commissioner who may be called upon in case of need, to take the place of the member of the Commission whose alternate he is.

The members of the Delimitation Commission shall be appointed within one month from the date of the Award of the Court. In the event of death or resignation of any member of the Commission, the vacancy shall be filled within one month in the manner in which the original appointment was made.

In the course of its work in the field, the Delimitation Commission may agree upon such compensations as may be necessary in order to demarcate the boundary line in a logical and natural manner.

The decisions of the Delimitation Commission shall be final and binding upon the two High Contracting Parties.

The Delimitation Commission shall be empowered to adopt and amend its own rules of procedure and to decide the manner in which it will carry out the task with which it may be entrusted by the Court.

Article 5. The High Contracting Parties will endeavor not to defer the exchange of ratifications of the Convention of Arbitration more than six months to be reckoned from the date of its signature.

Article 6. This Protocol shall be signed in nine original copies and will become effective on the date of its signature by the Plenipotentiaries of Bolivia and Paraguay (Paraguay and Bolivia).

In witness whereof the Plenipotentiaries of Bolivia and Paraguay (Paraguay and Bolivia) have signed the present Protocol in nine copies and affixed hereunto their seals, under the auspices of the Commission of Inquiry and Conciliation, Bolivia and Paraguay, whose members have also set their hands and seals thereto.

In the City of Washington, District of Columbia, United States of America, this . . . . . day of the month of . . . . . . . 1929.

  1. Transmitted to the Department by the Secretary General of the Commission on September 5.
  2. See letter dated July 10, 1929, from the chairman of the Commission to the Secretary of State, p. 863.
  3. On November 12, 1878; see Foreign Relations, 1878, p. 711.