724.34119/1478

The American Delegate to the Chaco Peace Conference (Braden) to the Secretary of State

No. 706

Sir: I have the honor to transmit in Spanish and English translation the draft Treaty of Peace, Friendship and Limits initialed and the supplementary annex to the Treaty signed in the early morning of July 9, 1938.

Respectfully yours,

Spruille Braden
[Enclosure—Translation]

Draft Treaty of Peace, Friendship and Limits Between the Republics of Bolivia and Paraguay

The Republics of Bolivia and Paraguay (Paraguay and Bolivia) with the intention of consolidating peace definitively and to put an end to the differences which gave rise to the armed conflict of the Chaco; inspired by the desire to prevent future disagreements; keeping in mind that between States forming the American community there exist historical brotherly bonds which must not disappear by divergencies or events which must be considered and solved in a spirit of reciprocal understanding and good will; in execution of the undertaking to concert the definitive peace which both republics assumed in the Peace Protocol of June 12, 1935 and in the Protocolized Act of January 21, 1936; represented:

The Republic of Bolivia, by His Excellency Doctor Eduardo Diez de Medina, Minister for Foreign Affairs, Propaganda and Worship,

and the Republic of Paraguay by His Excellency Doctor Cecilio Baez, Minister for Foreign Affairs and Worship,

Present in Buenos Aires and duly authorized by their Governments have agreed to concert under the auspices and moral guarantee of the six mediatory Governments, the following definitive treaty of peace, friendship and limits.

Article One. The dividing line in the Chaco between Bolivia and Paraguay (Paraguay and Bolivia) will be that determined by the Presidents of the Republics of Argentine, Chile, United States of America, United States of Brazil, Peru and Uruguay in their capacity as arbitrators in equity, who acting ex aequo et bono will give their arbitral award in accordance with this and the following clauses.

The arbitral award will fix the northern dividing line in the Chaco in the zone comprised between the line of the Peace Conference presented May 27, 1938 and the line of the Paraguayan counter-proposal [Page 169] presented to the consideration of the Peace Conference June 24, 1938, from the meridian of Fort 27 of November i. e., approximately meridian 61° 55’ west of Greenwich to the eastern limit of the zone, excluding the littoral on the Paraguay River south of the mouth of the River Otuquis or Negro.

The arbitral award will likewise fix the western dividing line in the Chaco between the Pilcomayo River and the intersection of the meridian of Fort 27 of November, i. e., approximately 61° 55’ west of Greenwich with the line of the ward in the north referred to in the previous paragraph.

The said line will not go on the Pilcomayo River more to the east than Pozo Hondo, nor to the west further than any point on the line which, starting from D’Orbigny, was fixed by the Neutral Military Commission as intermediary between the maximum positions reached by the belligerent armies at the suspension of fire on June 14, 1935.

Article Two. The arbitrators will pronounce, dispensing with titles of best right and juridical briefs, according to their loyal knowledge and understanding taking into consideration the experience accumulated by the Peace Conference and the advice of the Military Advisers to that organization.

The six Presidents of the Republics mentioned in Article One have the faculty of giving the award directly or by means of plenipotentiary delegates.

Article Three. The arbitral award will be given by the arbitrators within a maximum of two months counting from the ratification of the present treaty, obtained in the way and form stipulated in Article Ten.

Article Four. The award being given and the parties notified, these will immediately name a mixed commission composed of five members, two named by each party, and the fifth designated by common agreement of the six mediatory Governments in order to apply on the ground and set the bournes of the dividing line given by the arbitral award.

Article Five. The award being given the Governments of Bolivia and Paraguay (Paraguay and Bolivia) will accredit their respective permanent diplomatic representatives in Asunción and La Paz (La Paz and Asunción).

Article Six. The Republic of Paraguay guarantees the amplest free transit through its territory and especially through the zone of Puerto Casado, of merchandise arriving from abroad destined to Bolivia and of the products which issue from Bolivia to be embarked for abroad through the said zone of Puerto Casado; with the right for Bolivia to install customs agencies and construct depots and stores in the zone of the said port.

[Page 170]

The regulations of this article will be the object of a later commercial convention between both Republics.

Article Seven. The arbitral award having been executed through the application and setting of bournes of the dividing line the Governments of Bolivia and Paraguay (Paraguay and Bolivia) will negotiate directly, government to government, the other economic and commercial conventions they deem proper to develop their reciprocal interests.

Article Eight. The Republics of Bolivia and Paraguay (Paraguay and Bolivia) reciprocally renounce all action and claim deriving from the responsibilities of the war.

Article Nine. The Republics of Bolivia and Paraguay (Paraguay and Bolivia) renewing the non-aggression pact stipulated in the Protocol of June 12, 1935, solemnly obligate themselves not to make war on each other nor to use force, directly or indirectly, as a means of solution of any present or future difference.

If in any event these were not resolved by direct diplomatic negotiations, they obligate themselves to have recourse to the conciliatory and arbitral procedures offered by international law and especially the American conventions and pacts.

Article Ten. The present treaty will be ratified by the National Constitutional Convention of Bolivia and by a national plebiscite in Paraguay; in both cases ratification must take place within twenty days counting from the date of signature of this treaty.

Article Eleven. The parties declare that in case ratification referred to in the preceding article were not obtained, the text and content of this treaty cannot be invoked to found upon them allegations nor proofs in future occasions or procedures of arbitration on international justice.

In faith of which the representatives of Bolivia and Paraguay (Paraguay and Bolivia) together with the plenipotentiary delegates representing the mediatory countries in the Peace Conference sign and seal the present Treaty in double copy at Buenos Aires on the blank day of the month of July, nineteen hundred and thirty-eight.