724.3415/3401: Telegram

The Minister in Paraguay (Nicholson) to the Acting Secretary of State

107. League Commission arrived at Asunción yesterday and leaves for Chaco tomorrow. Local press friendly, taking for granted that Commission will find Bolivia the aggressor but non-committal as to probable effect on hostilities or territorial issue of Commission’s visit.

[Page 368]

Recent successes in the field have strengthened Paraguayan confidence. Reported resignation of Canelas Ministry has encouraged those who believe that Bolivian reverses will cause overtures of Salamanca Government and modification of Bolivia’s intransigent attitude. Commission’s visit considered to afford Bolivia an opportunity to adopt more reasonable attitude with minimum loss of face.

Nicholson