724.3415/2043: Telegram
The Ambassador in Argentina (Bliss) to the Secretary of State
[Received 9:30 p.m.]
71. Your August 11, 2 p.m. Minister of Foreign Affairs told me this afternoon that Argentina is not negotiating with the Governments of Bolivia and Paraguay but that the diplomatic representatives of these two countries and of Brazil, Chile and Peru frequently talk with him about the situation. At times he is embarrassed but says that he tells the representatives of the three latter countries that it is essential to avoid going counter to the actions of the Neutral Commission and necessary that they all act in concert. In his opinion Brazil and Peru are desirous of cooperating in every way possible with the Neutral Commission but he considers that Chile has to be watched especially because of the presence in Santiago of the Bolivian Minister of Foreign Affairs who has intimate contacts and family ties with many prominent Chilean families.
He told me that Paraguay seems to be receding from its former disposition to accept the status quo in the Chaco. He has received information to the effect that Paraguayan troops are being moved from the open territory of the Chaco where their inferior military [Page 177] equipment makes them no match for the Bolivians to the more advantageous wooded regions.
He was very insistent that it is essential to obtain without delay agreement to permanent cessation of hostilities which he thought could be accomplished on the basis of the status quo with recognition of course of the principle of the joint note of August 3 if some slight concession could be found to satisfy the Bolivian pride. As regards arbitrating the question he suggested it was better to endeavor to obtain a simple agreement to arbitrate the fundamental question at issue with the understanding that the arbitration commission would fix the bases for discussion later on. He felt that negotiations would be prolonged if attempts were made to establish now the lines on which the arbitration was to be based.
The Minister was profuse in his assurances that he was desirous of cooperating in every way possible and that he would urge the representatives of the other three countries to have their Governments keep the Neutral Commission informed of developments.