725.34/49: Telegram

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

38. The Brazilian Minister called on me this morning to discuss instructions that he has received from his Government in the following sense:

“Through the Brazilian Embassy in Santiago the Brazilian Government understands that the Chilean Government is well disposed toward settling the incident with Paraguay. In view of the change in the Foreign Minister in Paraguay and because of the importance to future mediation in the Chaco dispute the Brazilian Minister at Asunción is requested to approach the Paraguayan Minister for Foreign Affairs, if the American Minister agrees, and to confidentially seek to facilitate the mediation of the Governments of the United [Page 315] States, Argentina and Brazil to reestablish friendly relations between Chile and Paraguay. The Brazilian Minister is informed further that Cruchaga is disposed to immediately accredit a Chargé d’Affaires in Asunción in case Paraguay, at the request of the three mediators, gives a satisfactory reply to the Chilean note. It is suggested that the Paraguayan Minister for Foreign Affairs could in such note make reference to the observation contained in the statement of August 9th that the Paraguayan Government does not associate itself with the press campaign against Chile. It is also suggested that the Paraguayan note could refer to the fact that in the conversations in Buenos Aires between the representatives of Brazil, Argentina and the United States these representatives have [stated?] that they hope to count on Chilean collaboration in peace negotiations. It is suggested that the Paraguayan note might state that Paraguay has seen with satisfaction the efforts of Chile, together with other countries, to bring about an end of the war, but that the note could reserve the right for Paraguay to discuss the question of neutrality through normal channels. Finally it is suggested that the Paraguayan note might observe that Paraguay as always sees with satisfaction the general efforts toward peace which is the sentiment of the American countries.”

I do not believe that anything further can be accomplished by approaching the Paraguayan Government again on this matter at the present time and I believe that it would be ill-advised to suggest any such note as outlined above. It is wholly unlikely that the Paraguayan Government would accede to any such request unless circumstances change very radically. The Brazilian [Minister?] agrees with this opinion entirely.

I have taken no action whatever aside from discussing the situation informally with those of my colleagues who have come to talk with me about it. The Brazilian [Minister?] has decided not to see the Minister for Foreign Affairs but has asked his Government for further instructions. Please cable instructions as to my future action.

I respectfully suggest that it would materially assist me here and save embarrassment in my relations with other Legations and with the Paraguayan Government if I were promptly advised of developments in the Chilean matter and with respect to the Chaco peace conversations now in progress in Buenos Aires.

Nicholson