The Acting Secretary of State to the Acting Chairman of the American Delegation to the General Disarmament Conference (Gibson)
25. For Wilson from White. On October 12 Neutral Commission asked Bolivia and Paraguay24 to authorize their delegates in Washington to come to a meeting of the Commission of Neutrals to discuss, draw up and sign with the delegate of the other party, an agreement covering the following points: 1. The separation of troops in the Chaco; 2. the demobilization of the reserve troops of both countries; 3. the reduction and limitation for a stated period of the regular armies in both Bolivia and Paraguay. The letter added that it was understood that a commission of neutral military officers will be provided for in the agreement to verify compliance with the above condition. It was also stated that the agreement should provide that the controversy between the two Governments would be settled solely by arbitration and provide for the opening within a reasonable period, say a fortnight after the signing of the agreement, of negotiations for an arbitral settlement of the Chaco dispute.