824.00/814: Telegram

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

104. From Braden. My 99 July 15, 3 p.m. The Brazilian delegate and I had a very satisfactory 4–hour talk today with Bolivian Ministers of Foreign Affairs and of Mines and Petroleum. Baldivieso [Page 263] appears pacifistic and reasonable on the Chaco and should be helpful if as now appears likely he accepts the portfolio offered him.

Standard Oil Company confiscation was discussed at length and both incoming Ministers agreed to the recommendations which I made in a purely personal capacity, viz: (1), that the matter be referred to a commission of reputable citizens in order to at least tide over the present strong public opinion favoring confiscation; (2), to encourage foreign capital investment Bolivia must make some deal with Standard Oil Company perhaps along the lines followed by Chile with the American and Foreign Power Company.

The Brazilian delegate supported my recommendations and deprecated permitting Argentina to build a railroad from Yacuiba to Santa Cruz. With me, he argued in favor of a railroad from Santa Cruz to Puerto Suarez as the more logical economically and preferable from the standpoint of a favorable Chaco settlement of the port question. Your 56, July 17, 4 p.m. Bolivian delegate has presented note to Secretariat pledging faith in Conference compliance international commitments and expecting continuance of negotiations. At session this afternoon I stated the Department’s views. Due to Peruvian acknowledgment of Bolivian note simultaneous action by other mediatory nations was not considered desirable. Argentine Minister for Foreign Affairs stated he will telegraph Bolivian Government probably within 24 hours employing word “recognition”. Brazilian, Uruguayan and Chilean delegates expect their Governments promptly either to pursue Peruvian [course?] or ours. [Braden.]

Weddell