724.3415/1338: Telegram
The Minister in Bolivia (Feely) to the Acting Secretary of State
[Received 7:23 p.m.]
95. Minister of Foreign Affairs informed me yesterday that reply to neutrals’ note would be forthcoming early next week and intimated that Bolivia’s acceptance would be qualified by conditions which might not be acceptable to Paraguay especially in respect of withdrawal of troops, pointing out Paraguay’s proximity to and Bolivia’s distance from the disputed territory.
It is apparent that the intervention of the neutrals is embarrassing the Government which also resents the publicity given in Washington [Page 754] and Asunción to the neutrals’ activities in contrast with secrecy here. The Vice President and Sanchez Bustamante have both intimated to me that the President feels that undue pressure is being exerted upon Bolivia to Paraguay’s advantage, and that this feeling also exists in Congress which has invited the Minister of Foreign Affairs to inform Congress as to the present state of the Paraguayan controversy.
Paraguay’s readiness to accept the neutrals’ intervention, Bolivia’s evident desire to delay negotiations, and a feeling of fear and mistrust of the motives behind the neutrals’ repeated offers of assistance and the publicity given thereto, have created an atmosphere definitely unfavorable to a successful outcome of the neutrals’ intervention.
Sanchez Bustamante leaves for Buenos Aires on August 14 and is empowered to discuss with the Argentine Government, not only a renewal of relations but also means toward a settlement of the fundamental question.