724.3415/1416: Telegram
The Ambassador in Brazil (Morgan) to the Secretary of State
[Received October 9—11:20 a.m.]
70. Brazilian Minister for Foreign Affairs showed me an hour ago the text of a telegram received yesterday from Gracie, Brazilian Minister in La Paz, reporting that the Chief of Staff of the Bolivian Army had stated to him that the said army proposes aggressive action against Paraguay, occupation of Chaco forts on Paraguayan frontier, and bombardment by airplanes of Asunción.
Although selected, the names of the two Bolivian delegates to the November conference in Washington have not yet been published.
It would appear that the military party by aggressive action intends to prevent the meeting of the conference or at least to obstruct its work.
Brazilian Minister for Foreign Affairs considers the situation critical and that only strong action by the powers which can influence Bolivian opinion must be taken to prevent an open rupture and a state of war. He would like to know the character of your advices and what cooperative action he may take with the Five-Power Commission.