724.3415/3403: Telegram
The Minister in Paraguay (Nicholson) to the Acting Secretary of State
[Received 9:28 p.m.]
108. League Commission had two long interviews yesterday with the President who had with him Foreign Minister, former Foreign Minister Zubizaretta, and Minister of War. Foreign Minister traced course of negotiations for settlement of dispute through their terms of office and the President stated that Paraguay wants cessation of hostilities, security, and unrestricted arbitration. The President said that Paraguay is willing to discuss economic questions direct with Bolivia but that she will not consider any proposal to give Bolivia sovereign rights on the Paraguay River. He said that he will consider earnestly any suggestions from the Commission.
The President is said to have been less suave and more emphatic in his statement of Paraguay’s attitude at the second interview and to have given to the Commission, as he doubtless intended, the impression that they were hearing Paraguay’s minimum terms.
This morning the Commission left for the Chaco, their exact itinerary still uncertain. Generals Robertson and Freydenberg expect to visit the front and the Paraguayan Government wishes the Commission to see something of the economic development of the Chaco but the Commission is expected to return here within a week. Meanwhile it is believed that Paraguay will press the advantage that she has gained recently in the field in order to improve both her military and her bargaining position.