724.3415/4555: Telegram

The Chargé in Chile ( Scotten ) to the Secretary of State

22. I have just learned from the Foreign Office that Félix Nieto, the political adviser, arrived yesterday in La Paz on the following confidential mission; in view of the imminence of the meeting of the League Committee in Geneva on February 24th which will put into effect the sanctions against Paraguay determined upon in the meeting of November 24th, Chile and Argentina recently had an exchange of views. As a result it was decided that Argentina would send a special agent to Asunción and at the same time Chile would send a similar agent to La Paz. These agents would endeavor to reconcile the views of Paraguay and Bolivia to the end that the sanctions contemplated against Paraguay might be avoided. Because of the generally unfavorable situation of Bolivia, the Foreign Office believes Nieto may have some chance of success. The Chilean Government strongly hopes that some way may be found to prevent sanctions being applied against Paraguay, stating it is in full accord with the American point of view as understood here.