724.3415/2487b: Telegram
The Acting Secretary of State to the Minister in Bolivia (Feely)
47. In order to help in the negotiations now going on by the Neutrals with the Bolivian and Paraguayan delegates, please endeavor to find out for confidential use and not to be communicated to the Paraguayans or to the other Neutral members how far Bolivia will agree to withdraw her troops in the Chaco and the minimum number of troops that Bolivia wants to retain under arms. The Neutrals feel that the best chances for success in bringing about an agreement between the parties and, after that is accomplished, in bringing about an arbitral settlement once and for all of the Chaco dispute lies in the greatest possible separation of the troops in the Chaco and the demobilization of the largest number of troops. This will of course help the economic condition in both countries also.
One consideration which you may discreetly use in your talks with the Bolivian authorities, if in your discretion you consider such action to be advisable, is the advantage to Bolivia of withdrawing troops as a result of her own free will and agreement rather than under the compulsion of Paraguayan forces. The Neutrals’ suggestion of last July to withdraw to the line of June 1 has been shown by events to have been highly advantageous to Bolivia. Bolivia declined the suggestion and has now been forced back far beyond that line. Paraguayan troops appear still to be advancing in the Chaco and it would appear to be the part of good statesmanship to agree to a withdrawal of Bolivian forces voluntarily, obtaining at the same time the withdrawal of Paraguayan forces from her advanced positions, rather than to have hostilities continue with perhaps further forced retirement on the part of Bolivia. The Department realizes the delicacy of broaching this subject and leaves the matter entirely to your discretion but hopes that you will be able to influence the Bolivian Government to agree to a very substantial retirement. Finot proposed that Bolivia keep Fort Muñoz but if Paraguay is to give up her forts in the Chaco she will certainly not agree to Fort Muñoz being retained by Bolivia. Is there any possibility of getting Bolivia to withdraw to say the 63rd meridian?