724.3415/2766a: Telegram
The Acting Secretary of State to the Ambassador in Peru ( Dearing )18
4. Telegram from Minister of Foreign Affairs of Chile, through Chilean Embassy here,19 states that according to information which he considers trustworthy the Governments of Paraguay and Bolivia would be disposed to hear and consider proposals which were drawn up by the five Neutrals and the four neighbors in conjunction. The proposal would be as follows: First, agreement on an armistice, Bolivia and Paraguay maintaining their actual positions while they agree in a short time on the stipulations for the fundamental solution of the problem. Second, acceptance by both parties of the principle of arbitration applied through successive arbitrations. After first establishing the points of disagreement to which the arbitration will be extended with the preliminary reports of the geographical and historical institutes which both parties may designate, the respective arbitral tribunals will be set up. Third, once these bases are accepted in general they will proceed rapidly to a study of the details of the armistice, its duration, giving the necessary guarantees not to renew hostilities, constitution of the arbitration, and other particulars required for the execution of the plan proposed.
Please cable any information discreetly obtainable as to whether Chilean Government has discussed this with Government to which you are accredited and whether that Government is in agreement with Chilean Government that this is the basis on which to proceed and associates itself with the Chilean Government in this matter.