The Minister in Paraguay (Wheeler) to the Secretary of State
[Received June 30.]
Sir: I have the honor to inform you that today Dr. Bueno, the Brazilian Minister here, left Asunción for a visit in São Paulo, Brazil, where he will have a conference with the Brazilian Minister for Foreign Affairs.
Last night he called on me to tell me confidentially that President Guggiari has asked him to lay before the latter the proposal that Brazil and Argentina jointly take possession of the Chaco and impose an arbitration upon both Paraguay and Bolivia. He informs me that he told Guggiari that in his opinion there could be no likelihood of a favorable answer, although it might be possible, in the event that Paraguay and Bolivia should agree in advance on a temporary retirement of their Chaco forces from advance positions pending an arbitration, that Brazil and Argentina would consent to police jointly the median zone during the interval. As to the probability of that, he was unwilling to express an opinion.