724.3415/4033a: Telegram
The Acting Secretary of State to the Minister in Bolivia (Des Portes)
17. There appears to have arisen considerable misunderstanding in the course of the conversations held in Buenos Aires between Dr. Saavedra Lamas and the Bolivian Minister in Argentina as to the statements made by the Bolivian Minister in Washington with regard to the views of his government concerning the conciliation formula. Dr. Finot’s statements to this Government have been entirely clear and have been clearly comprehended. He has today confirmed the Department’s prior understanding on this point. Inasmuch as the first message received from the Bolivian Government with regard to its attitude towards adoption of the conciliation formula appeared to leave room for doubt, Dr. Finot, at the Department’s request, cabled [Page 182] for a further expression of Bolivia’s views, which he interpreted to the Department as follows: that the statement referring to the sine qua non of the outlet to the River Paraguay was intended for the confidential information of the mediating nations in order that Argentina might sound out the position of Paraguay with regard thereto and was to be construed as a clear warning on the part of Bolivia that Bolivia could not accept an agreement through conciliation unless an outlet to the River Paraguay formed a part of such agreement. He stated further that the sine qua non was understood to refer solely to efforts at conciliation and not to an agreement to arbitrate. Please advise the Minister for Foreign Affairs immediately of the above and state that there is no misunderstanding on the part of this Government of the views expressed by Dr. Finot as above outlined.
As the Bolivian Government has been informed, the Government of Paraguay has now accepted formally and in writing and without reservation the seven bases contained in the conciliation formula proposed by Dr. Saavedra Lamas. This Government earnestly hopes that the Government of Bolivia may be disposed to take similar action promptly. While the Government of the United States is unwilling to make any prior commitment to support the claims of either one of the belligerent nations, you may say that in the conciliation conversations which might ensue, this Government, as one of the mediating powers, would necessarily support any proposals for solution which at such time appeared to it to be fair and reasonable.
It seems highly important that the Government of Bolivia define clearly its attitude towards arbitration and it would seem desirable that the bases for arbitration be agreed upon prior to the commencement of conciliation conversations in order that both nations may realize that if the attempt at conciliation fails, arbitration by the Permanent Court becomes at once obligatory at the end of the time stipulated in the conciliation formula.
Please cable the Department fully the response which may be made to you by the Minister for Foreign Affairs and express the pleasure with which this Government will receive any suggestions which the Bolivian Government may care to make as to how it may be helpful in bringing about an agreement along the lines proposed in the Argentine conciliation formula. The Department understands that your Brazilian colleague has been instructed to cooperate closely with you and that similar instructions have been sent to him by his Government.