834.00/6–2447: Telegram

The Chargé in Paraguay (Trueblood) to the Secretary of State

us urgent

341. Negrão de Lima returned here yesterday. He tells me rebels will not accept government’s terms of unconditional surrender, feeling that they can prolong struggle indefinitely and eventually win. Rebels will accept, however, following terms:

Free elections guaranteed by either non-partisan or coalition government, Morínigo to finish out his term, and armed forces to be reorganized on basis of professional officers, which will in turn guarantee government.

Negrão feels situation has changed radically since he was last here with government now faced by 4–6–month struggle to defeat rebels, whereas earlier they spoke of an end by June 15, etc.

He is conferring now with Foreign Minister.

Sent Department 341; repeated Rio 66, Buenos Aires 100.