724.3415/3975½
The Assistant Secretary of State (Welles) to the British Chargé (Osborne)
My Dear Osborne: Thank you very much for your letter of July 23, transmitting the text of a communication in regard to the sale of arms and munitions of war to Bolivia and Paraguay, addressed by Sir John Simon to the Secretary General of the League of Nations. We were pleased to learn of the progress made toward effective international cooperation in this matter, as we are convinced that the stoppage of shipments of arms to the belligerents will have results, both moral and material, which will hasten the restoration of peace between them.
Since the Joint Resolution of Congress, prohibiting the sale of arms and munitions to the Governments of Bolivia and Paraguay or to persons acting in their interest, was proclaimed by the President on May 28, no shipments of such commodities destined to either country have left the United States, with the exception of some which were contracted for by the Bolivian Government and paid for in whole or in part before May 28 and of which the manufacture was completed or virtually completed on that date. At the request of the Bolivian Government, we have made a careful examination of all outstanding contracts between it and American companies and of contracts between the Lloyd Aereo Boliviano—a commercial airline operated in Bolivia—and an American company, and, on grounds of equity to Bolivia, certain exceptions from the general prohibitions of the Resolution have been granted. All shipments pursuant to the sales which have been excepted will be completed within the next week or ten days and as the Secretary has determined that no further exceptions will be granted, no further shipments of arms or munitions destined to either country [Page 278] can be made thereafter. The effect of the President’s Proclamation will, therefore, be an absolute and unqualified embargo.
You may be interested in the Press Release in regard to this matter which is being issued to the press today. I enclose a copy.5
Very sincerely yours,
- Department of State, Press Releases, July 28, 1934, p. 71.↩