724.3415/2825: Telegram
The Minister in Paraguay (Wheeler) to the Secretary of State
[Received 3:15 p.m.]
13. Yesterday the Chilean Government asked Ayala, (1st) whether Paraguay was in a position to consider a proposal from Chile and, (2nd), whether Paraguay was opposed to the neutrals taking any further part. Ayala replied as follows: Paraguay has received an offer of [mediation?] from Argentina the said offer having been preceded by the statement that, while it was Argentina’s understanding that the neutral group had ceased to act, she intended to invite their cooperation; Paraguay had answered that she would be greatly interested in any proposal Argentina might put forward; this was Paraguay’s only engagement. While Paraguay could not negotiate with two sets of powers at one time, if the neutrals found it possible to act in unison with the neighbor countries there could be no objection. What Paraguay wanted was united action. It was then suggested by Chile that Paraguay express a preference as between Argentina and Chile to take the lead in the negotiations but this Ayala declines to do. The above inquiry by Chile is here believed to indicate that Saavedra and Cruchaga at their coming meeting in Mendoza will discuss a concrete proposal.
I am confidentially informed that 14 French planes recently purchased by Paraguay have arrived in Buenos Aires and are now in process of transshipment and that it is not impossible that Paraguay may obtain the “loan” from Argentina of a number of pilots. This Government is greatly pleased at Chile’s reported action of January 20 in refusing transit of a shipment of war material for Bolivia which it is assumed is in retaliation for Bolivia’s refusal to consider Chile’s recent proposal as to the Chaco.