724.3415/2796: Telegram

The Ambassador in Peru (Dearing) to the Secretary of State

26. Chaco. Chilean Ambassador informs me Bolivia and Paraguay, through their Ministers in Santiago, have agreed with Chilean note for bringing Chaco hostilities to halt and arranging settlement. He understands Bolivian and Paraguayan Ministers in Lima have expressed themselves similarly and states Peru and Chile are in accord but Leticia situation blocking conversations for the moment. He thinks Argentina desires to go alone or merely to have four neighboring countries act and leave Neutral Commission outside, that Brazil is holding back. Efforts continue to bring all four into line with Chilean note and Chile and Peru prepared to act alone if Argentina and Brazil hold out and to cooperate with Neutrals as soon as situation permits. He did not reveal actual terms but states he merely wants opportunity to go ahead with the Foreign Office.

Repeated confidentially to Santiago.

Dearing