724.3415/3465: Telegram

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

Following telegram has been sent to the Legation at Montevideo and repeated to the Secretary of State at Buenos Aires:

“December 29, noon. Confidential for the Minister. In conversation with Ayala last night he said Army was hostile to extension of armistice but he might agree to extension of 8 days if satisfactory protection could be given Paraguay for this period.

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He said ‘The war must stop’. He spoke candidly of the expense of maintaining Army and providing for 14,000 prisoners. One thousand of the prisoners require medical care. Regarding question of security and protection in the event of demilitarization I asked whether ABCP would be acceptable as guarantors and he said yes, but did not discuss the matter. He said the Commission does not appreciate difficulty of his position with a victorious Army to control now, and a Congress to satisfy later, as to any peace he may negotiate.

It is evident that economic pressure now adds greatly to Ayala’s anxiety. He most earnestly desires immediate demobilization provided Paraguay can be adequately protected.

Please advise me whether this telegram accords with Zubizaretta’s attitude and proposals.”

Nicholson