724.3415/742c: Telegram

The Secretary of State to the Ambassador in Argentina (Bliss)

101. The American Legations at Asunción and La Paz will present to the Paraguayan and Bolivian Governments on Tuesday, October first, the following communication:

[Here follows the text of note transmitted in circular telegram, September 23, 6 p.m., to the American diplomatic representatives in Bolivia and Paraguay, printed on page 903.]

Please hand the Minister for Foreign Affairs on Tuesday, October 1st, a copy of the above communication and inform him that the five neutral countries represented on the Commission of Inquiry and Conciliation, that is to say, Mexico, Cuba, Colombia, Uruguay and the United States, have given very careful thought to the situation at present existing between Bolivia and Paraguay, and feel that it is fraught with very grave danger. While the Commission accomplished a conciliation of the incidents of last December under the terms of the Protocol, it was not empowered by that instrument to settle the fundamental question. As long as this exists there is very grave danger of clashes in the Chaco where there are fifty-two forts of the two Parties facing one another and where very considerable forces of troops are concentrated. An outbreak may occur at any time. The five neutral Governments felt that it is essential to have in being immediately some machinery which, through the exercise of friendly neutral good offices, can prevent outbreaks.

On August 31 the neutral Commissioners made a proposal of arbitration to the two countries. Objections were made by both Parties [Page 908] on September ninth and a modified proposal, meeting all objections of both Parties, was submitted on September 12. The Commission expired by limitation the following day before answers could be received from the Parties.

The neutral Governments offered the good offices of their Commissioners for the continuance of the work. This was accepted by Paraguay but Bolivia stated a preference for direct negotiations, expressing however its willingness to take into consideration the suggestions of a Commission of neutrals at the time of renewing the negotiations for a settlement of the fundamental question.

It therefore seemed to the five neutral Governments that the points of view of both contending Parties could be met by suggesting the opening of immediate good offices and the immediate setting up of a neutral Commission. This neutral Commission could exert its influence for the maintenance of peace before direct negotiations are entered into and after their termination, should they unfortunately prove unsuccessful, and also extend its good offices for a settlement in the latter eventuality. Furthermore, this Commission, it is felt, could be of the utmost assistance to the Parties during the course of the direct negotiations in overcoming obstacles which must invariably arise. The essential thing is the establishment of the machinery of conciliation. The place where this machinery shall be established is of secondary importance. This Government has offered Washington as a place for holding the meetings in view of the fact that the Pan American Conference, which first took this matter up, was held here and because the Commission of Inquiry and Conciliation emanating therefrom also held its sessions in Washington where there is already established a Secretariat and a very extensive collection of documents, et cetera, pertaining to this matter. However, if the two Governments agree on some other place for the holding of the meetings, this will be eminently satisfactory to the five neutral Governments. The other neutral Governments are making analogous suggestions to the two countries. You will please make this full and frank explanation of the situation to the Minister for Foreign Affairs.

[Paraphrase.] According to reliable reports that have come to the attention of the Department, Argentina is exerting every influence with Bolivia not to continue the negotiations in the city of Washington but to transfer them to Buenos Aires under the sole auspices of the Government of Argentina. The Government of the United States does not desire to make the matter a question of prestige between Washington and Buenos Aires, and for this reason it was suggested that any other capital acceptable to the two Parties would be eminently satisfactory to the five neutral Governments. The [Page 909] diplomatic representatives in Washington of the four neutral countries, their Commissioners and the Secretary of State are very much impressed with the danger of the situation, and the likelihood of further outbreaks unless some conciliatory machinery is established. For that reason we have made this last proposal in the endeavor to conciliate the points of view of both contending Parties. It is essential that machinery be set up to prevent any outbreak. [End paraphrase.]

In a note to the Argentine Chargé d’Affaires here on September 24, transmitting to him for the Argentine Government, at the request of the Chairman of the Commission of Conciliation, the latter’s report of the results of the Commission’s labors, I stated as follows:

“I have been specially requested by the Chairman of the Commission of Inquiry and Conciliation, Bolivia and Paraguay, to inform your Government that in the course of the study of the background of the Chaco dispute the Neutral Commissioners were deeply impressed by the many earnest efforts that the Government of the Argentine Republic has made to bring about the final settlement of the longstanding controversy between Bolivia and Paraguay. They were particularly gratified by the well advised action of the Argentine Government during the recent Conferences of Plenipotentiaries held at Buenos Aires and, in view of the fairness of the formula there advanced by the Argentine observer, they decided to incorporate it in their arbitral counter-proposal of September 12. They feel that the method of arbitration proposed by the Neutral Commissioners to the Republics of Bolivia and Paraguay thus becomes closely related to and is a continuation of that advanced by the Argentine Government.”

Stimson