724.3415/3291: Telegram
The Chargé in Chile (Norweb) to the Secretary of State
[Received 8:37 p.m.]
90. The Foreign Office has just given us the formula which has been agreed upon by the neighboring countries for settling the Chaco matter and which Brazil will soon present to the belligerent countries. The formula provides that the belligerents will first sign an agreement to submit the entire Chaco question to arbitration. Immediately afterwards they agree to appoint an arbitrator to determine the arbitral zone and simultaneously with this second step they agree to cease hostilities. Bolivia and Paraguay accept the moral guarantee of the neighboring powers that the plan will be faithfully carried through. Bolivia has accepted the proposal in the same manner but Paraguay has not yet indicated its attitude.
In view of previous experiences we do not feel too optimistic but it is clear that the Chilean Government has more confidence in the present attempt than in previous ones.