724.3415/3573: Telegram
The Ambassador in Chile (Sevier) to the Secretary of State
[Received 9:35 p.m.]
26. Department’s telegram 23, February 25th. In a conversation with the Minister for Foreign Affairs this morning he informed me that according to his information Bolivia may accept the League proposal but that Paraguay will reject it. However, since Chile is a member of the League of Nations he has instructed his respective Legations to recommend without comment its acceptance.
[Page 61]The Minister was outspokenly unimpressed with the formula and I am convinced that he will not support it effectively. He feels that it fails to take into consideration the psychological and legal factors, namely, that Paraguay is the victor and is in possession. Therefore, he considers it unreasonable to require the victor to withdraw to the river miles behind its railheads. He understands that the military group in Paraguay would never consent to this measure even were the Government disposed to accede, in which latter event a revolution would immediately start. In the second place he is reliably informed that Paraguay will not agree to the inclusion in the arbitration of the Paraguay River and the hinterland. He feels that the first objection could be removed by modifying the formula so as to require the withdrawal of Paraguayan troops only to the railheads but he can see no solution to the second article.
The Minister was frankly pessimistic about the situation and was convinced that the formula will not be accepted. Therefore he feels that in the event that the League proposal is definitely rejected the time will have come to take drastic measures to compel the cessation of hostilities and the definitive settlement of the controversy. He believes that this can be attained only through the close cooperation of the neighboring countries supported by the United States in coercing the belligerents. To that end he will be disposed to recommend that each of the neighboring countries take necessary steps to prevent the importation of war material and food supplies, except in the quantity required by the civil population. He added that he would also propose the suspension of diplomatic relations with the country refusing to submit the controversy to arbitration. However, prior to Saturday when the belligerents must reply to the League the Minister does not wish to take any action other than that outlined in the first paragraph.