724.3415/1252: Telegram
The Chargé in Bolivia ( Trueblood ) to the Acting Secretary of State
65. The Minister of Foreign Affairs just advised me that Bolivia had no other alternative but to withdraw its Minister and staff from Asuncion which would be done tomorrow morning in view of Paraguay’s inflexible and uncompromising attitude. He also said that the Bolivian Government had decided to accept the arbitration proposed by the Argentine Government since it contained a concrete formula for solution of the difficulty.
I inquired if the Argentine proposal contemplated any effort to induce the countries to delay rupture of diplomatic relations and he replied in the negative, reiterating that it was inconsistent with Bolivia’s honor to allow Guachalla to stay longer in Asuncion. He stated that the latter would probably go to Buenos Aires and await the outcome of the Argentine arbitration and return to his post later if the incident was solved satisfactorily.
He did not volunteer any information regarding the concrete proposition made by Argentina nor did I inquire. He did state, however, that the neutral note of June 6 [25] would be answered provisionally within a few days to the effect that until the situation returns to normal a definite reply cannot be given.
The discussion to accept the Argentine proposal was apparently made in an extraordinary session of the President, Cabinet and notables held this morning and came as a complete surprise after my conversation with the Minister of Foreign Affairs last night and inconsistent with press comment this morning which saw in the efforts of the neutrals the only possibility of settling the matter.
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