724.3415/777: Telegram
The Secretary of State to the Chargé in Bolivia (Hibbard)
64. Your telegram No. 79, October 8. General McCoy is at a loss to understand the statement in the last paragraph of your telegram that the Bolivian Delegates reported to the Minister of Foreign Affairs that “they were not consulted before the formula for the settlement of the fundamental question was announced”. While it seems probable that any such impression results from a possible misinterpretation by the Bolivian Government of the reports received from its Delegates, nevertheless, it may be helpful in clearing away such misunderstanding as exists for you to have an understanding of the circumstances from which the neutral Commissioners concluded with great reluctance that a direct settlement of the fundamental question was impossible. This will enable you to rectify the impressions which you mention, whether they spring from a misunderstanding by the Bolivian Government or from a difference in the deductions of the Bolivian Delegates and of the neutral Commissioners drawn from the circumstances of the negotiations which were equally known to all members of the Commission.
After the powers of the neutral Commissioners were amplified they proceeded with a program, first, to effect a direct settlement and, next, if that were impossible, to propose a solution by arbitration. This program was made known to and approved by the Bolivian Delegation July 12. Thereafter constant negotiations for a direct settlement were carried on, in the course of which the outline of a formula thought by the neutrals likely to meet with the approval of both parties was insinuated and its purport modified to conform as much [Page 919] as possible with their observations. This negotiation was only abandoned by the neutral Commissioners on August 26 on which day the neutral Commissioners were convinced that a final deadlock was established. They felt themselves forced to this conclusion because on August 16 the Bolivian Delegation expressed to the Chairman on behalf of its Government what the neutrals regarded as a final position on an essential element of the formula then under discussion, while on August 26 the Paraguayan Delegation by direction of its Government, expressed in equally final terms a position irreconcilable with that previously stated on behalf of Bolivia. Each interested Delegation was informed of the position taken by the other and neither gave any intimation that its own position was not a final one.
However, the most important consideration in this connection is that all the neutral Commissioners then concluded that a direct settlement was impossible. The Department believes that, unless some new and favorable factor should appear, such a conclusion represents a more accurate estimate of the prospects of direct settlement than any which can be reached by either interested Government without the intervention of friendly and disinterested third parties.
Another possibility of misunderstanding is contained in the reported statement of the Bolivian Delegates above referred to. Before August 31, when the formula for arbitration was presented to them, they had been informed that the neutral Commissioners were preparing such a formula. The surprise shown by the Bolivian Delegates at the time of its presentation could have arisen only from the terms of the formula but not from the fact of its presentation or the fact that it was a formula for a settlement by arbitration rather than for direct settlement.
The foregoing considerations and any existing misunderstanding as to how the neutrals came to make their proposals are now secondary. Of primary importance at the present time is the fact that the proposals made present a practical method of reaching a solution of the basic question and the only method deemed possible by the five neutral Commissioners. The Department is therefore glad to note that the President of Bolivia has already been persuaded of the complete impartiality and loyalty of the neutral Commissioners, and especially of the American Commissioner, towards Bolivia. And this Government hopes earnestly that nothing will be permitted to obscure the point now under consideration, which is fully set forth in the communication sent to the Bolivian Government on October 1 by the neutral Governments, and in the Aide Memoire handed to the Bolivian Minister here on October 2 which is quoted in the Department’s telegram No. 60.86
[Page 920]The Department desires you carefully to avoid giving any impression that this Government would be willing to act as sole arbitrator. The five neutral Governments are cooperating closely and loyally and it would be embarrassing to this Government to have such a suggestion made. Please do everything you properly and discreetly can to have the offer of the five neutral Governments accepted.
- Dated October 2, 6 p.m.; not printed.↩