724.3415/4920: Telegram

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

59. My 58, May 30, 6 p.m. At Commission meeting last night there was submitted to Bolivian and Paraguayan Foreign Ministers for [Page 68] their signature, if approved, a second formula drafted by the Brazilian Foreign Secretary amplifying formula reported in my 58. At meeting this afternoon Bolivian Minister for Foreign Affairs informed the Commission of his Government’s acceptance thereof with only minor changes. Paraguayan Foreign Minister, however, demanded, as fundamental, guarantees for the definite cessation of hostilities to take effect prior to settling territorial differences by direct negotiations or failing latter by an arbitration to be organized by the peace conference. Guarantees demanded were demobilization, reduction of effectives, agreement against new purchases of war material and execution of a nonaggression pact between the two belligerents.

Bolivian Foreign Minister refused to accept the Paraguayan demands, insisting that at least a definite arbitration agreement must be concluded before Bolivia could demobilize. Attempts are being made to reconcile these seriously conflicting views through a compromise formula providing for the immediate convoking of the peace conference for the purpose of ratifying the result of Bolivian-Paraguayan direct negotiations, should they take place, or in the event of a failure of these negotiations, of fixing simultaneously guarantees looking to the suspension of hostilities and of organizing arbitration.