724.3415/2956: Telegram

The Minister in Paraguay (Wheeler) to the Secretary of State

35. The President informs me that he has information that Peru has come to an agreement with Bolivia for the admission of Bolivian war materials at Mollendo in the event that Chile refuses them passage at Arica. This, together with a deepening doubt of the sincerity of Argentina and Chile, has destroyed Paraguay’s last hope of any favorable outcome of the present negotiations. This Government has thus far refrained from making the declaration of a state of war at the urgence of the ABCP but she considers a state of war further protracted and, while Bolivia increases her importation of supplies and equipment from Chile and Argentina, might be fatal to Paraguay and I anticipate that the declaration will be made early next week.

Wheeler