834.01/10: Telegram

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

82. Department’s 46, February 27, 7 p.m. Minister for Foreign Affairs still being absent in Sao Paulo and not returning to Rio until tomorrow, I took up the matter of Paraguayan recognition with the Secretary General of the Foreign Office. He had discussed the matter fully with President Vargas last evening.

The President feels that it would be premature to accord recognition now. The declarations made by Colonel Franco are in themselves reassuring but he feels it would be prudent for the mediating governments to bide their time until they see how far his words are borne out by his acts.

The Brazilian Government has information that Paraguayan and foreign Communists deported from Paraguay by President Ayala have now been summoned back and that a number of them are playing an active role including Peralta, the Minister of Education.

In any event the President feels that no recognition should be accorded until satisfactory guarantees are given that the new Government will respect all commitments undertaken at the Chaco Peace Conference.

Gibson