724.34119/1300: Telegram

The Minister in Bolivia ( Caldwell ) to the Secretary of State

16. [From Braden.] The following telegram has been sent to Buenos Aires for Haden.

Before decoding telegraph following rush to colleagues in Asunción:

The militant group prevailed in Junta today over the President and Minister for Foreign Affairs with the result that that body categorically rejected our proposal or any minor alteration thereof declaring it to be unjust and unreasonable. Instead they propose Linares to Ingavi to Puerto Pacheco with no payment but the Bolivian Minister for Foreign Affairs declares that if the Conference will offer Guachalla, 27 of November, Ingavi, and Puerto Pacheco plus 200,000 pounds payment by Bolivia to Paraguay he will vigorously defend that offer with the support of the President and hope to succeed and would resign his post if the Junta did not approve of it. Under no circumstances will Bolivia give money for Puerto Caballo.

We have declared that we know their Linares proposal to be totally unacceptable; nevertheless we are transmitting it together with the above unofficial suggestions of the Minister for Foreign Affairs but we will leave for Buenos Aires on Friday’s train. Braden.