724.34119/45: Telegram

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

135. From Gibson. In view of some of his recent activities it would not be surprising if Saavedra Lamas were to make some reference in the Conference to possible financial aid by the United States for rehabilitation of the belligerent countries or even a surprise proposal in regard to this. I can of course dispose of the matter if it arises by a statement of my own to the effect that the American Government is not equipped to deal with matters of this sort but you may have some further ideas which this would afford an occasion to express. If so I should be glad if I might have them before next Friday’s meeting.

It must be borne in mind that Saavedra Lamas’ interest in our financial assistance to the belligerents is probably based on the assumption that a large part of the money received by both countries would find its way to Argentina in the form of the refunding by Paraguay of Argentine advances (Saavedra Lamas has repeatedly stated that Bolivia will have to pay a large sum in reparation to Paraguay). [Gibson.]