724.3415/3306

The Ambassador in Brazil (Gibson) to the Secretary of State

No. 15

Sir: I have the honor to refer to the Embassy’s despatch No. 4182 of July 29, 1933, on the subject noted above, and to enclose herewith a copy of a memorandum of a conversation I had on August 21 with the Minister for Foreign Affairs with respect to the Chaco negotiations.

Respectfully yours,

For the Ambassador
Walter C. Thurston
[Enclosure]

Memorandum by the Ambassador in Brazil (Gibson)

In the course of my conversation with the Minister for Foreign Affairs this afternoon, I asked him as to the progress made in connection with the Chaco negotiations. He said that the negotiations [Page 354] were in suspense pending the receipt of replies from the other three mediating Powers to his latest proposal. He had said that if they were in agreement he would propose to both Paraguay and Bolivia a preliminary settlement by the acceptance of a line delimiting the territory unconditionally recognized as belonging to Paraguay, and that the remaining territory should be evacuated by both sides who should at the same time accept an armistice of forty-five days to be prolonged as conditions required. He had suggested this relatively brief armistice period because he felt that it was a common state in such cases to fix a period so long that all the interested parties lost interest in immediate action. He said that he had not heard from Argentina, Chile or Peru, and was unable to conjecture what their attitude would be on this proposal, but that after all the varied schemes which had been brought forward and rejected, he felt that this was about the last hope of favorable action.

He said that he would keep me informed of developments.

Hugh Gibson