724.3415/2757: Telegram

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

5. Your telegram number 76 [circular?] of January 7, 3 p.m. Argentina has made no approach to Paraguay since Moreno13 left Asunción nor has any suggestion come from Chile. Last night I broached hypothetically to the President the idea of the combination outlined in your telegram. His reaction is as follows:

The present time is most propitious for a settlement as both peoples at heart desire peace; both are facing bankruptcy and smarting from losses and neither has won a sweeping victory. The neighbor powers decide to offer, in lieu of the complete demobilization Paraguay has been insisting on, a form of security which would satisfy her demands. Since the neighbor powers would thus be furnishing an element of which the neutrals could not avail themselves in framing their suggestion of December 15th,14 the latter might be able to accept the modified formula. Also Bolivia might find in the modification sufficient face saving to enable her to agree. The difficulty would be the mutual jealousy of Saavedra Lamas and Cruchaga. Peru would offer no difficulties but at the first sign of lack of unanimity between Argentina [Page 245] and Chile Brazil would stand out entirely as has always been her policy.

The only chance of success along the line indicated, Ayala believes, would be for the neutrals to request the four neighbor powers to consult together and to lay before the group, with a view to a combined effort, a specific suggestion which might be made to the two contending powers in the name of the neutral powers and the neighbor powers together. He has not much confidence, however, that the latter would view such a request favorably.

Wheeler
  1. Ruiz Moreno, adviser to the Argentine Foreign Office.
  2. Foreign Relations, 1932, vol. v, p. 126.