724.3415/2090: Telegram

The Minister in Paraguay (Wheeler) to the Secretary of State

89. Your telegram No. 32 of August 12 [15], 6 p.m. If the neutrals do not find it practicable to insist on positions of June 1st the President can suggest nothing at present. We have been working out details of the suggestion of a mutual retirement from most advanced positions of both sides, whereby the evacuated strip would contain the fortines recently taken by Bolivia, as a possible alternative. This would have been sent you tomorrow. Tonight, however, Soler cables that reluctance of Argentina and Chile has been overcome by the neutrals, that in all probability June 1st positions will be insisted on and that it is believed Bolivia must yield. For this reason the President prefers that this alternative suggestion be not forwarded you at present.

The military situation here is acute. There have been recent [Page 72] Bolivian plane flights and attacks on observation posts that have not been made public on account of popular excitement. War Department’s reports indicate that the Bolivian concentration west of the Mennonite Colony now numbers a force that in 10 or 15 days more may be overwhelming and the high command is violently urging the necessity of striking before it is completed. The President is opposing this but greatly fears longer delay as, if the colony is cut off, he believes no contrary orders would prevent the Army from beginning general action.

Wheeler