724.3415/1262
Memorandum by the Assistant Secretary of State (White) of a Conversation With the Paraguayan Chargé (Ynsfran)
Señor Ynsfran called to say that he had received a cable from his Government to the effect that the American Chargé d’Affaires in Asuncion had expressed the concern of this Government regarding [Page 737] the possibility of a breaking off of diplomatic relations between Bolivia and Paraguay and had expressed this Government’s hope that Paraguay would take a conciliatory attitude by making a reply that would give satisfaction to Bolivia. The Chargé said that he was instructed by his Government, in reply, to say that the Paraguayan Government regretted that it could not do so.
I told the Chargé that I was very sorry to learn of this attitude on the part of his Government, which made any action on our part extremely difficult, and that in view thereof I would not send a telegram which I had prepared to the Legation concerning this matter.
I then reviewed the situation again with Mr. Ynsfran and told him that it seemed to me that his Government would now have to make a choice between one of two things: Did it want to assume a position of intransigence toward this particular matter on the grounds of amour propre and hope in that way to maintain national dignity, or did it consider of more vital importance to Paraguay the possibility of a settlement of the Chaco matter? An uncompromising attitude in the present matter would undoubtedly bring about a break in diplomatic relations and much bitterness between the two countries, which would postpone for considerable time any possibility of settling the fundamental question. Paraguay has all along been insisting that Bolivia discuss the matter in Washington, and now when the road seemed to be open for this I was at a loss to understand why Paraguay would take an attitude which would make what she has so long desired impossible. The Chargé said that he agreed fully but did not see any way out. I told him that his Government might reply in a friendly way to the Bolivian note saying that Paraguay still maintained the friendliest feelings toward Bolivia and would suggest that the best way out of their difficulties would be for both to accept the neutral offer for a discussion of the Chaco matter in Washington, and that, should Bolivia so desire, this minor side issue might also be presented to the diplomats of the neutral countries in Washington for their suggestions as an equitable way out. The Chargé said that he agreed fully and would take the matter up with his Government by cable at once in this sense.