724.3415/2796: Telegram
The Secretary of State to the Ambassador in Peru (Dearing)
13. Your 26, January 16, midnight. For your information only. Department’s information indicates that Argentina does not accept Chilean proposal; Brazil has stated she will not answer until she receives the announced Argentine plan; Bolivia has thanked Chile for its interest and says that she thinks more good will be done by reviving the Neutral proposal of December 15 and giving it the backing of the four neighboring countries. Latest information from Asunción is to the effect that Chilean proposal had not been received officially and government would not commit itself until it is received but indicated that it was not considered to meet the situation and Paraguay hoped [Page 259] four neighboring countries and Neutrals would agree in advance on some plan. Department also feels best chance for progress is for neighbors and the Neutrals to agree in advance before taking up any plan with Bolivia and Paraguay.
Neutral Commission is waiting until next week for Argentine proposal to see if it offers any possibility of a settlement. Please repeat confidentially to Santiago.