724.3415/3950: Telegram
The Minister in Paraguay ( Nicholson ) to the Secretary of State
[Received 5:50 p.m.]
32. Department’s telegram No. 26, July 20, 2 p.m. The President requested me to see him at his home last evening and I talked with him for about 2 hours. An air mail despatch covering the conversation will leave Asunción on July 26.2 The following paragraphs summarize his observations with respect to the Chilean situation and peace negotiations.
I told the President the sense of the Department’s telegram No. 26. He replied unhesitatingly to the effect that there is no reason for any hurry about naming another Minister to Chile since such protests as Paraguay has made as to various unfriendly acts of Chile had gone unheeded. He said that the President of Chile has dictatorial powers and could have prevented the enlistment of Chilean officers in the Bolivian Army. He stated that he was satisfied that war materials are reaching Bolivia through Chile and he added that he knew that a secret pact of a military nature had been made between Chile and Bolivia. He said that 2 months ago he had told the Chilean Minister in Paraguay of his belief in or knowledge of such a pact and that when the latter denied it the President requested the Minister to verify the report by inquiry to the Chilean Government. The Chilean Minister wrote a telegram to his Government in the presence of the President. The President informed him that the Chilean Government had not answered the inquiry. The President again repeated his often expressed opposition to any suggestion that the West Coast governments serve as mediators in the Chaco controversy.
With respect to mediation the President said that Argentina had commenced a movement for mediation and had invited the United States and Brazil to join with her. The proposal had been submitted to Bolivia and the President of Bolivia would agree only if the possession of a river port were guaranteed in advance. Paraguay will not agree to this stipulation. The President reiterated that he is entirely agreeable to the present Argentine proposal of immediate cessation of hostilities with guarantee of security and a meeting of representatives of the belligerents in Buenos Aires with mediators from the United States, Argentina and Brazil to agree upon the points to be arbitrated. This agreement upon the scope of arbitration is regarded by the President as essential. The President thinks that pride rather than hope of gaining her demands was the cause for the Bolivian objection to the Argentine proposal. He believes that Bolivia must have something [Page 303] to show to satisfy political opinion at home and to counteract military reverses and stated that perhaps some judicious pressure exerted on Bolivia by the United States would lead to an acceptance of the Argentine proposal. I repeated to the President that my Government as a friend of both Paraguay and Bolivia is sincerely interested in the success of any proposal to bring about peace.
- Despatch No. 94, July 25, not printed.↩