724.3415/1250: Telegram

The Acting Secretary of State to the Chargé in Paraguay (Horn)

23. The Department was advised yesterday afternoon that the Bolivian Government had sent instructions to Bolivian Minister in Asuncion to leave. As neither Bolivia or Paraguay have offered any suggestion to any of the neutrals as to how they can be helpful in straightening out this matter, the Legation at La Paz was immediately instructed to see whether Bolivia would withhold action and discuss the matter frankly with the American Chargé and other neutrals to see if a satisfactory adjustment can be arrived at.

The Department is now advised that the Minister for Foreign Affairs was receptive to the idea and said that he would see President Salamanca this morning and then give a definite answer. He stated that second Bolivian note had been delivered yesterday afternoon and that Bolivian Minister would not leave until 7 o’clock Thursday morning. He urged that Paraguay be sounded out along the same lines and be persuaded to accept the efforts of the neutrals.

Please immediately inquire of Minister for Foreign Affairs whether Paraguay would accept efforts of the neutrals to find a solution in order that the matter may immediately be taken up with La Paz. Also inquire what are Paraguay’s views regarding a suitable settlement of this incident.

Cable answer urgently and cable copy to Legation at La Paz.

Castle