724.3415/4560: Telegram

The Chargé in Paraguay (Thurston) to the Secretary of State

12. The Minister for Foreign Affairs informed me in strict confidence this morning that a Cabinet meeting will be held tomorrow or Saturday to discuss the advisability of withdrawal from the League. President Ayala returned yesterday from a visit of several [Page 11] days at the front and presumably holds the approval of military of any procedure that may be decided upon.

I received the impression from my conversation with the Minister for Foreign Affairs that while the Government considers that Paraguayan public opinion favors withdrawal from the League there is some hesitancy probably due to the reluctance of President Ayala to expose Paraguay to any possible charge of placing obstacles in the way of peace. He seemed to be of the opinion nevertheless that unless the League recommendations of January 16th are modified in such manner as to remove the present affront to Paraguayan national honor, withdrawal will follow. Efforts to bring about such a modification apparently continue to be made by Argentina.

The Minister expressed himself as being entirely indifferent to my [any?] action in the nature of economic sanctions that the League might propose, saying that unless Argentina and Uruguay undertook to execute them they would remain inoperative.