724.3415/2585a: Telegram

The Secretary of State to the Minister in Bolivia (Feely)

52. In order to try to find a fair basis which will meet the views of both parties, Finot has been asked to cable his Government to see whether something along the following lines would be acceptable to Bolivia as it is believed that this proposal is fair to both:

[Here follows text of points 1 to 5 inclusive contained in telegram No. 53, December 2, 6 p.m., to the Minister in Paraguay, printed on page 112.]

6.
The agreement will of course provide that nothing therein affects in any way the juridical position of either country. The withdrawal of the troops to the lines mentioned and the fixing of zones for policing are therefore devices for maintaining peace and do not affect the rights of either party. The limits of the Chaco, as stated above, would be decided by a group of three geographers and the rights of both parties within the Chaco will then be determined by arbitration.
7.
The forces of both sides will be demobilized down to a figure to be agreed upon in each case.

It is hoped that the proposal for the expert geographers will overcome the Bolivian objection to so-called double arbitration. The advantage of this proposal from Bolivia’s point of view is that it brings about the immediate stopping of hostilities, permits Bolivia to demobilize her troops and hence cut down enormous expenses of maintaining such great forces so far from their bases. It protects all Bolivia’s juridical rights in the Chaco and it provides for a definite settlement of the Chaco question. Bolivia has stated in the past that she could not demobilize until she knew that there would definitely be an arbitral settlement of this question. Bolivia has stated that once the troops were withdrawn and demobilized Paraguay would [Page 115] not agree to arbitration and would carry on with Bolivia having withdrawn and demobilized. This difficulty is overcome by the present proposal which provides for a definite determination of the limits of the Chaco and an arbitral decision as to the territorial limits between the two countries therein.

The above proposal appears to be eminently fair and it is hoped that Bolivia will promptly accept in order to terminate the costly fighting now going on. Please discuss the matter discreetly with the Bolivian officials and cable results of the interview as soon as possible.

Washington Post this morning publishes Associated Press despatch from La Paz giving text of instructions cabled to Bolivian Legation in Washington regarding proposals now under consideration. Please point out discreetly that if these negotiations are to be successful there should be as little publicity as possible until an agreement has been obtained by both sides. Department very much fears that premature publicity may cause difficulties. Please advise accordingly that no further publicity be given this matter for the present.

Stimson