724.3415/3570: Telegram
The Minister in Paraguay (Nicholson) to the Secretary of State
[Received February 28—12:12 a.m.]
13. The President called me to his house tonight and said that steps have been taken to take advantage of the 3 days’ extension that Bolivia has requested in preparing reply. He said that the Commission proposal as submitted will be rejected. The main objection is the inclusion in the territory to be arbitrated of the territory on the West bank of the Paraguay River and its corresponding hinterland which he says is the life blood of Paraguayan economy. The President expressed his opinion that this was introduced into the negotiations by Bolivia for political effect.
The unexpected fairness of the Commission’s proposal has made favorable impression in best circles here. He expressed his belief that peace would be forthcoming in the near future though possibly not through Commission’s efforts.
Repeated to Buenos Aires.