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The Chargé in Brazil (Thurston) to the Secretary of State

No. 4171

Sir: Supplementing the Embassy’s telegram number 69, dated July 25, 5 P.M., I have the honor to report that the following statement was printed in the Rio de Janeiro newspapers this morning, presumably having been issued by the Foreign Office: [Page 348]

“The belligerent Governments of Bolivia and Paraguay agreed, after having heard the Governments of the Argentine Republic, Brazil, Chile, and Peru, to request the League of Nations to nominate the four ABCP States, in substitution of the commission of five members whose appointment has been under consideration by the Committee of Three, with full powers to study a formula designed to restore peace between them.”

I was informed at the Foreign Office yesterday afternoon that this development has been brought about by the Brazilian Minister for Foreign Affairs, Dr. Mello Franco, and I received the impression that his principal purpose was to return to America and withdraw from the League of Nations jurisdiction over the Chaco peace efforts. During a recent conversation the Minister for Foreign Affairs expressed to me his great regret at the relinquishment by the Neutral Commission in Washington of its jurisdiction over the Chaco peace efforts, indicating that he had hoped that the message conveyed in the Embassy’s telegram number 58, dated May 31, 2 P.M., would encourage it to continue with its labors.

Respectfully yours,

Walter C. Thurston