724.3415/2716a: Telegram

The Chairman of the Commission of Neutrals (White) to the Secretary General of the League of Nations (Drummond)

Bolivian Government has expressed its acceptance in principle of proposal of Neutral Commission of December 15th as basis for discussion to arrive at an arrangement assuring peace and Bolivian delegate has stated his readiness to renew negotiations on this basis.

Paraguayan Government stated that proposal does not give assurance that fighting will not be resumed and demands complete evacuation of Chaco by Bolivia, the limits of which are not agreed to [Page 259] by the Bolivian and Paraguayan Governments. Neutrals in reply have pointed out this lack of agreement as to the Chaco territory and the fact that they are not judges passing on the titles of either party to the Chaco but are merely offering way out by separating the troops to such extent as to give definite assurances that fighting will not be resumed, reenforcing this security by sending a neutral commission to the Chaco, and providing for arbitral settlement which, if accepted, will proceed automatically to definitive solution of matter. Neutral Commission furthermore pointed out that Paraguay on September 16th herself suggested withdrawal of Paraguayan troops to Paraguay River and in August accepted that hostilities be stopped on the basis of the positions of June 15th which was more or less in the region of the 60th meridian of longitude west of Greenwich. The troops, however, would have been left facing one another. Under present neutral proposal both sides would withdraw about 2½ degrees of longitude from where fighting is now taking place, making contact between the troops impossible and hence giving Paraguay far greater security than she was willing to accept last August. However, Paraguay has now withdrawn its delegate.

In view of this situation Neutral Commission has inquired of the four countries neighboring on Bolivia and Paraguay what steps they would be prepared to take in order to prevent further bloodshed. Neutral Commission is convinced that the nations of America working in common accord can preserve peace in this hemisphere and have asked the active cooperation of the four countries nearest the scene of hostilities.

Neutral Commission will be glad to keep you advised of developments and to make any suggestions for cooperation which might later be pertinent.

White