724.3415/2826: Telegram
The Ambassador in Argentina (Bliss) to the Secretary of State
[Received 7:50 p.m.]
13. Minister for Foreign Affairs told me today that he hoped his conversation next week with Chilean Minister for Foreign Affairs would lead to agreement between their Governments on procedure in Chaco dispute. Also that his investigations at La Paz and Asunción encourage his hope of finding solution on following bases: cessation of hostilities, mutual demobilization, withdrawal of troops to deter [Page 262] mined lines, submission of controversy to commission to determine scope of arbitration of Chaco question. It is his idea that said commission be composed of representatives from neighboring countries and those composing Neutral Commission though he would prefer a commission composed of representatives of the 19 American Republics signatory declaration August 3d.50 If this hoped for solution should fail he thinks Paraguay will declare war naturally entailing declarations of neutrality by neighboring Governments.
Minister declared his intention of advising Espil fully in the premises for information of Neutral Commission.