724.3415/2296: Telegram

The Secretary of State to the Minister in Switzerland (Wilson)

64. Your 84, September 17, 11 a.m. Until recently Bolivia was the recalcitrant one. In the last 4 or 5 days Bolivia has become more cooperative and Paraguay has become recalcitrant and even somewhat truculent in her answers. This is evidently because Paraguay seems to be getting the better of the present hostilities.

The plan of the Neutrals at present is to try to bring about an immediate cessation of hostilities and then negotiations for a settlement of the fundamental question of the Chaco. Of course conditions for the continuance of the cessation of hostilities might also be discussed at the outset. Bolivia has agreed to the immediate cessation of hostilities and to a discussion of the fundamental question at issue. Paraguay has also agreed to a discussion with the Neutrals of the fundamental question at issue as soon as a truce can be arranged which she says will not be used by Bolivia to improve her military situation so that the negotiations will not be carried on under the pressure of military threat. The Neutrals are endeavoring to work out this remaining difficulty and are hopeful of success. I shall be glad to keep you informed of progress of negotiations from time to time.