724.3415/1239a: Telegram

The Acting Secretary of State to the Chargé in Bolivia (Trueblood)

25. Press reports today indicate that Bolivia will break off diplomatic relations with Paraguay unless a denial is made of the recent statement by Paraguayan Chargé in Washington. Please cable at once the situation. The Department and the representatives here of the neutral Governments supposed the situation to be entirely changed now that neutrals’ note has been presented. Breaking off diplomatic relations now when there is possibility for a free and friendly discussion of the whole matter would be a most serious setback in the cause of peace in South America, and the Department desires [Page 734] you to discuss the matter fully with the Minister for Foreign Affairs and to report the situation fully to it. Department will be glad to have you use your influence in a discreet manner in order to maintain the present situation unchanged.

Castle