724.34119/997

Memorandum by the Chief of the Division of the American Republics (Duggan)

Mr. Mackehenie of the Peruvian Embassy called and permitted me to read a telegram which the Embassy had received from the Peruvian Ministry of Foreign Affairs. The telegram stated that the Peruvian Government had reason to believe that the recent revolution in Paraguay was connected with the Chaco question and that as a result of the change in government there might be a renewal of the Chaco conflict. The telegram also instructed the Embassy to inquire what measures of consultation the United States Government proposed to take in connection with the recognition of Paraguay.

After expressing deep appreciation for the friendly way in which the Peruvian Government had approached this Government, I informed Mr. Mackehenie that the information so far available in the Department did not indicate that the revolution in Paraguay arose out of the Chaco conflict. I stated that it looked as though certain moderate elements which in the past had been disposed towards a settlement might be associated with the Government, which should dispose the Government to a more conciliatory rather than a more belligerent attitude. I then informed Mr. Mackehenie that the Department was instructing Mr. Braden, our Ambassador at the Chaco Conference, to confer with his colleagues, including the Peruvian Ambassador, regarding recognition of the new Paraguayan regime and to report fully to the Department. I stated that in this the Department was following the precedent set in connection with previous revolutions in Paraguay and Bolivia. I told Mr. Mackehenie that I would be glad to get in touch with him as soon as word had been received from Mr. Braden.

Laurence Duggan