724.3415/3329: Telegram
The Chargé in Paraguay (Horn) to the Secretary of State
[Received 4:55 p.m.]
92. I have just seen the President who is not very hopeful that the last formal proposal of the limitrophe nations will succeed. He tells me the ABCP powers have recently informally sought Paraguay’s consent [Page 358] to a modification desired by Bolivia which would exclude an extensive zone of the Chaco from the arbitration. The Paraguayan Government firmly declined to consider such a change.
The President also told me that the Uruguayan Minister, who returned on the 23d from Montevideo, asked him if, in the event present negotiations should fail, the Paraguayan Government would be willing to have Uruguay introduce the Chaco War as a subject for consideration by the Seventh International Conference of American States. Ayala replied that although Paraguay is always willing to discuss the Chaco war if invited to do so, he believes its consideration at Montevideo would bring about the failure of the Conference.