724.34119/154: Telegram

The Ambassador in Brazil (Gibson) to the Secretary of State

213. Dawson’s 194, September 2, 9 p.m. from Buenos Aires.

1.
In conversation with the Foreign Minister this evening I gave him the substance of Dawson’s telegram and he allowed me to read a similar message from Rodrigues Alves.
2.
Macedo Soares said that while he had great confidence in Rodrigues Alves’ judgment he could not on this basis of the facts reported find any grounds for optimism; that he was asking for further particulars.
3.
We were agreed that as the possibility of solution is dependent upon Paraguayan territorial concessions, it would be preferable for Rodrigues Alves and Podestá Costa to make their visit to Asunción before territorial question is taken up by the Plenary Conference rather than afterward. If matters are allowed to reach an impasse in the plenary it will be difficult for the President of Paraguay to [Page 134] back down whereas any concessions which he may be persuaded to make before outset of the discussions would obviously facilitate counter concessions and agreement. For that reason Macedo Soares is telegraphing that he feels it would be a mistake to take up the territorial question in plenary and that it should be deferred until after there has been an opportunity to persuade the President of Paraguay of the desirability for concessions. If this visit takes place it will be carried out with a minimum of publicity as a normal visit of two men who have frequently been there in the past.
Gibson