724.3415/4003: Telegram
The Ambassador in Brazil (Gibson) to the Secretary of State
[Received 9:30 p.m.]
169. 1. Brazilian Ambassador in Buenos Aires reports Saavedra Lamas states both Paraguay and Bolivia have accepted protocol in principle.
2. Ambassador also reports that Ayala has just telephoned Saavedra Lamas that he is instructing his Minister in Santiago to express to the Minister for Foreign Affairs his Government’s entire disapproval of the press campaign which was a purely private matter.
3. Ayala informed Brazilian Minister at Asunción that in making foregoing statement to the press tomorrow he proposed to add that the Paraguayan Government still fully maintains its previous assertion that Chile has been guilty of nonneutral conduct.
4. Brazilian Ambassador in Santiago reports that in conversation Cruchaga affirms that he has no desire to humiliate Paraguay or demand satisfaction which would be offensive to her national pride.
5. Foreign Office telegraphing Brazilian Minister at Asunción instructions to act with his American colleague to persuade Ayala to defer or preferably refrain from making press statement which could only make matters worse suggesting to him the alternative of instructing his Minister in Santiago to call upon Cruchaga when expressing verbally the Paraguayan Government’s regrets at the press campaign to affirm Paraguay’s confidence in the propriety of Chile’s diplomatic action.
6. Foreign Office at the same time suggesting informally at Buenos Aires, Santiago and Asunción that the notes exchanged between latter two capitals be withdrawn with a view either to replacing them with other notes in milder terms or to verbal adjustment.
7. The Foreign Office feels there is great urgency in this matter and hopes you will feel justified in issuing appropriate instructions to Nicholson.