724.3415/2609: Telegram

The Secretary of State to the Minister in Paraguay (Wheeler)

57. Your 169, December 9, 2 p.m., President Ayala seems to overlook that under the suggestion made, the arbitral settlement of this dispute will be carried out automatically without Bolivia being able to prevent such a settlement at a later date. It may be well to make this a little more explicit. The agreement will provide that if the two parties, after 4 months say of direct negotiations, are unable to agree on the limits of the Chaco that then the expert Commission of geographers mentioned in paragraph 4, Department’s 53, December 2, 6 p.m., will decide the limits of the Chaco definitely and without appeal and question will then automatically go before the arbitral tribunal to determine the territorial limits between the two countries within the Chaco as defined by the expert Commission.

As to the policing of the zone there will be a provision that nothing in the agreement affects in any way, shape or form the juridical position or legal rights of either party in the Chaco dispute. The lines established for the withdrawal of the Bolivian and Paraguayan forces and for the policing of the territory will specifically be called a device for terminating hostilities, maintaining peace and preventing clashes or outbreaks when hostilities have been terminated and that they in no wise relate to or change or affect in any wise the juridical status of the parties.

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Please make this very clear to Ayala and see if in view of this he cannot accept the Ballivián–Vitriones line and the policing suggested.

Please reply as quick as possible as the Neutral Commission is under great pressure and may have to take some action within the next few days. It would like to do so with the full agreement of both parties if possible. The arrangement seems so eminently fair to both, offers an honorable way out, brings about a definite settlement and protects the legal position of both parties which cannot be changed except by the arbitration and not by the proposed arrangement. The Department very much hopes you can get President Ayala’s acceptance promptly.

Stimson