724.3415/1293
Memorandum by the Acting Secretary of State of a Conversation With the Brazilian Ambassador (Lima e Silva)
The Brazilian Ambassador came in to say that he had had an urgent telegram from his Government saying that Brazil felt the situation between Paraguay and Bolivia as to the boundary was very critical. In fact, the Brazilian Government believes the danger to be acute and that any actual clash between the two countries might spread in South [Page 748] America, largely because of the bad economic situation. The Brazilian Government, therefore, urged most strongly that the American Government should immediately offer to arbitrate in Washington the boundary between Paraguay and Bolivia. The Brazilian Government would urge the two countries to accept this arbitration.
I told the Ambassador that we were fully alive to the serious situation, that efforts had already been made toward getting Bolivia and Paraguay to agree that the neutrals should immediately get busy on this question, but that the situation had been held up momentarily by the Ynsfran incident. The Ambassador interrupted to say that he understood the Argentine Government had now brought about a peaceful solution in that case. I said that we had the same understanding. He seemed disappointed that we felt it necessary to have the neutrals take up the boundary case as he thought the United States could do it more expeditiously alone. I told him I thought we had gone too far along that line to suggest any change now, but that he could report to his Government that we were alive to the situation and would push the matter as rapidly as possible.