724.3415/3545: Telegram

The Ambassador in Argentina ( Weddell ) to the Secretary of State

34. Referring to Department’s telegram No. 22, February 14, 8 p.m., I send the following from Mar del Plata:

I talked today with Bolivian Minister and also with Foreign Minister Saavedra Lamas.

The former expressed himself in pessimistic tone but said he was waiting on the Paraguayan reply to the Bolivian proposal which should be received by the League Commission tomorrow or Tuesday.

Saavedra Lamas said he had read the Bolivian proposals and had talked with the Minister of Bolivia which latter country’s attitude now seems more reasonable, while Paraguay is flushed with victory. He told me that the situation of Argentina vis-à-vis the two belligerents [Page 52] was delicate and while Argentina was happy to collaborate with the League Commission that neither his country nor, he felt sure, the United States wished to be in a position of League appends [sic]. He remarked that League prestige was involved in the success of the negotiations. He added that he felt his Mendoza proposals27 still offered the best solution of the question.

Saavedra Lamas further informed me that he understood oil deposits were in the disputed territory which complicated the matter and that a pipe line might enter into the economic phases of the solution.

With regard to Bolivia’s claim involving the reopening of the Hayes Award he said this was unimportant as any tribunal would disregard this pretension, that the real question is an economic one including Bolivia’s outlet.

In conclusion, the Minister said he would thoroughly post himself in the next few days and promptly advise me. We are both returning to Buenos Aires tomorrow when I also hope to establish immediate contact with League Commission and will advise.

Weddell