724.3415/3456: Telegram

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

115. For the Secretary. There is unquestionably increasingly strong sentiment here demanding peace commensurate with sweeping military successes. The designation of Zubizaretta as Paraguayan representative at Peace Conference indicates yielding by the President to strong feeling against an easy peace. It is possible that submission to arbitration by any agency of the territorial question will now be resisted. There are no evidences here of political disturbances. I am satisfied that the President today enjoys the full loyalty of General Estigarribia and the army. The protest by Bolivia over alleged violation of armistice arouses ridicule and resentment here and if recognized is likely to precipitate further military demonstrations by Paraguay.

For my guidance please reply by telegraph probable time the Secretary will leave Montevideo.

Repeated to Montevideo and La Paz.

Nicholson