The Secretary of State to the American Delegate (Braden)
Sir: With reference to your despatch No. 406 of April 20, 1937, following are the Department’s views with respect to the specific recommendations made by you regarding the further course of negotiations.
The necessity for a vigorous effort to reach a settlement on the territorial issue has been urged upon both the Argentine and Brazilian Ambassadors during conversations with them at the Department. This policy will be continued whenever the opportunity arises.
The Department would be prepared to send a message to the Paraguayan Government as indicated in paragraph (b) on page 12 of [Page 10]your despatch, contingent upon the situation calling for such action and upon circumstances being opportune.
Whenever the Paraguayan Minister has come to the Department, occasion has been taken to talk with him about the desirability of reaching a definitive settlement of the territorial issue. This procedure also will be continued.
The Department is of the opinion that the trade agreements program cannot be used in any effective manner to induce favorable action in the Chaco negotiations upon the part of the Paraguayan Government.
Very truly yours,