The Chargé in Paraguay ( Trueblood ) to the Secretary of State
128. I conveyed substance Deptel 68, March 18, 7 p.m., to Foreign Minister this morning. He seemed stunned by our refusal but I cannot believe either he or President sincerely thought we could take request seriously. Chaves then suggested we extend aid indirectly by agreeing to let Brazil transfer a few lend-lease planes to Paraguay. I gave him no encouragement on this. See Military Attaché’s secret telegram No. 105, March 16.1
Especially after Liberal Party statement telegram 122,3 it is becoming clearer that only insuperable obstacle to pacific settlement of Paraguay’s political situation is continuance of President Morínigo in office. Although Colorados profess confidence and some talk of fight to finish, I believe they would jump at compromise which would stop [Page 973] present insane course events here, ruinous to a poor country and with infinite possibilities chaos and confusion. Unfortunately Colorados feel honor bound stand by Morínigo. Brazilian Chargé4 also of opinion that there is no reason why this situation should be allowed to degenerate into unnecessary civil war and is so informing his Government.