724.3415/2483: Telegram
The Minister in Paraguay (Wheeler) to the Secretary of State
[Received November 5—12:12 a.m.]
145. The public demand that Paraguay break off conversations with the Neutrals has been growing in strength. Yesterday after a group of Senators and Deputies had called on him to urge retirement from Washington the President cabled Soler asking whether there was hope of any action in the near future. Ayala has been hampering further military advances so far as he is able, aware that the more reverses Bolivia suffers the more difficult it will be for her to recede from her position, but this Government has reached the point where it must either negotiate or go forward. The General Staff asserts that Muñoz can be taken any day its fall is desired. Ayala told me [Page 107] today that if the military party continues to gain in strength he may, against his desire and efforts, even be forced to refuse arbitration.
There is increasing resentment here at the reported coming of General Kundt from Germany to Bolivia, as a move calculated to stiffen the Bolivian Government against any agreement for the cessation of hostilities. Penz has cabled a strong protest to the German Government as has also the German Minister here in the name of all German organizations, commercial and social, of Paraguay. The President hopes very strongly that the Neutrals may find it possible to register disfavor of his coming, not only on the specific ground above indicated but on principle, as amounting to an undesirable interposition of an European militarism in a matter whose solution should be left to the Americas. My Argentine and Chilean colleagues also have asked me to transmit this suggestion to you. They have cabled their Governments today recommending an expression by the latter to the German Government of a similar disapproval.