724.3415/3039: Telegram

The Minister in Bolivia (Feely) to the Secretary of State

34. In an informal conversation with the Minister for Foreign Affairs today I inquired whether a concrete proposal based on the following general principles would be favorably received by Bolivia, explaining that I was acting without instructions and on my own initiative;

“Both parties to agree to a legal arbitration in accordance with neutral proposal of December 15, the arbitral zone to be determined within a limited time by geographical and historical societies it being understood that the Hayes zone would be excluded therefrom in exchange for the exclusion of an equivalent zone from Bahia Negra to the south in such a way as to permit of the establishment of practicable port on the Paraguay River; immediately after the signing this agreement troops would be withdrawn in accordance with the Mendoza formula.”

The Minister replied that he considered this a practical suggestion, which would be given earnest consideration by the Bolivian Government, and suggested that I discuss it with the President, which I shall do tomorrow in the same informal manner. The Minister added that if the two zones were excluded there might not be any need for the services of the geographical commission to which he is personally opposed.

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He also informed me that a somewhat similar plan had been suggested by the Uruguayan Government to the Paraguayan Minister at Buenos Aires about a month ago, who was favorably impressed but expressed the opinion that the internal political situation was such as to preclude its acceptance by Paraguay at that time.

I have not informed my colleagues of my conversation with the Minister of Foreign Affairs.

Feely