Foreign Relations of the United States Diplomatic Papers, 1935, The American Republics, Volume IV

724.34119/193: Telegram

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

Rio de Janeiro, September 23, 1935—5 p.m.
[Received 8:25 p.m.]

241. Your 156, Sept. 21, 3 p.m.

1. As reported in my 240, September 23, 3 p.m.⁸⁸ I am leaving tomorrow in order to reach Buenos Aires on September 27th.

2. I have just come from a conversation with Macedo Soares in which I communicated to him the substance of your telegrams.

4.* He recognizes the necessity for my being present at the next meetings but is insistent that I return here as promptly as possible thereafter for the following reasons:

5. For your personal and secret information he tells me that in his discussions with Prieto⁸⁹ while here (my 225 September 12, 9 p.m.⁸⁸) and later by telephone he feels he now has Paraguayans lined up on the basis of a solution which Bolivia can accept. The Paraguayans are insistent that the possibility of such concessions shall not be made known to Saavedra Lamas at this stage. In view of this rather peculiar situation and in order to be free from responsibilities for possible leakage I considered it wiser to ask no questions as to the character of the Paraguayan concessions.

6. His next step is to determine whether the Bolivians can be brought nearer to agreement. Macedo Soares is today inviting Elío to visit Rio ostensibly as a complement to the recent visit of the Paraguayan mission but really in order to talk matters out [over?] with him under favorable conditions. He tells me he has reason to believe that Elío will come here as soon as possible after the declaration of termination of the war prepared to discuss the Bolivian position with a frankness not possible in Buenos Aires.

7. In the light of full reports Macedo Soares is convinced that there is no hope of solution of the fundamental problems being reached by the Conference method in Buenos Aires. Both parties manifest growing suspicion of Saavedra Lamas and some of the other mediators and appear to be drawing farther away from possibilities of agreement and are even unwilling to state their real desiderata. He feels that the best chance of success now lies in persuading them in private conversations here in Rio to confide to him their minimum demands.

8. From his whole attitude I am convinced that this is no effort to run away with the credit, that he is sincerely concerned with putting an end to the conflict and that once a basis of solution has been agreed upon he is prepared to let it appear as the outgrowth of the work of the Conference. He does not lose sight of the necessity for avoiding ruffling the susceptibilities of Saavedra Lamas. In this connection he has consistently opposed any suggestions of allowing the Conference to die in Buenos Aires in order that the problems might be taken up under more favorable auspices elsewhere. He expresses himself definitely that the Conference must be kept going in Buenos Aires in order to deprive the parties of any ground for withdrawal from the negotiations but he feels with equal strength that the activities there should be of a distinctly time killing character in order to afford leisure for the private discussion which alone can lead to agreement.

9. On the basis of my own experience in Buenos Aires I am confident of the soundness of this estimate of the possibilities of the situation.

10. I took up with Macedo Soares the plan referred to in your telegram although as reported in my 203, August 17 [27] midnight, I had discussed it with him previously. He feels still more strongly at present that this plan should be held in abeyance and that any attempt to put over a definite solution in Buenos Aires at this time would inevitably disrupt the Conference, that the one hope of solution is to continue the discussions in Buenos Aires on matters of detail avoiding major clashes and afford time for him to elicit from the two parties the greatest possible measure of concessions here. As I understand it, his plan is in all essentials similar to the one I have suggested with the difference that he wishes to bring it forward only after he is assured of acceptance instead of introducing it in the Conference in the hope of securing acceptance there. If his optimism is justified this would obviously appear to be the better course.

11. In view of the delicate nature of the work being done by Macedo Soares I am confident you will not wish me to cross wires with him by introducing important proposals until he has had an opportunity to see what he can accomplish.

12. The Minister spoke with considerable emphasis of his desire that I be here to work with him or parallel him in bringing the parties to a more reasonable state of mind. You may rest assured that I shall be careful in any such work not to get beyond my depth.

13. Macedo Soares has not informed any other government of his present activities and his representatives in Washington and Buenos Aires are ignorant of it. I trust, therefore, that the foregoing will be kept strictly secret.

14. While I quite recognize the necessity for my presence in Buenos Aires during the meetings following declaration of the termination of war, Macedo Soares’ efforts would appear to be the only realistic work now being done and I trust you will see the urgency of appointing a second delegate who will be able to attend the meetings in Buenos Aires and leave me free to return here.

15. Even if it were not for this work I should feel impelled to urge the appointment of a second delegate because of the disquieting general situation here affecting American interests. I think we can assume that the trade agreement⁹¹ will go through. However, progress to date has been the result of unremitting daily personal pressure and if this is removed there is always the possibility of delays and unexpected complications. Aside from this we have, as the Department is aware, a series of problems in connection with the unfreezing agreement, the possibility of suspension or revision of the debt plan and other questions affecting important American interests. In the light of my knowledge of the situation here and in Buenos Aires, if I were authorized to use my own judgment, I should have no hesitation in making such arrangements as were possible for carrying on the work in Buenos Aires and return to Rio to give my full time and attention to the situation here.

16. In view of all the foregoing you may desire to instruct me to attend the opening meetings, report upon the general situation, prospects of agreement and plans for work and then use my own judgment as to when I should return here.

Gibson

88. Not printed.
89. Owing to error in numbering paragraphs the cable does not contain a paragraph number three. [Notation on original.]
89. Justo Prieto, Paraguayan Minister of Education.
88. Not printed.
91. See pp. 300 ff.