724.3415/4124: Telegram
The Ambassador in Brazil (Gibson) to the Secretary of State
[Received 9:20 p.m.]
221. 1. Brazilian Ambassador in Buenos Aires reports today that Paraguayan Minister has stated that although Paraguay accepted the seven bases unconditionally, Bolivia has now put forward certain suggested modifications which change the whole problem, and that under [Page 205] the circumstances Paraguay desires to withdraw her original acceptance in order to propose modifications in her turn.
2. Ambassador reports Lamas has confirmed the substance of his note to the Bolivian Government in regard to the forts, stating that Argentine forces have occupied only three forts and this because by a change in the course of the Pilcomayo River they are now in Argentine territory, and further that Bolivian detachments which occupied them requested the Argentine forces to take them over.
3. Bolivian Minister for Foreign Affairs expresses surprise to Brazilian Minister at Lamas’ action in informing the League that his mediation is ended and that the solution is now in the hands of the League. He requests the Brazilian Government to ask explanation of “this strange behavior”.
4. Foreign Office has explained to the Bolivian Minister here that in its opinion the Bolivian Government is not entitled to regard this behaviour as strange; that the mediating powers urged Bolivia to request postponement of action by the League and that in spite of original agreement Bolivia had done nothing and it was therefore felt that Bolivia had no ground for complaint.
5. Bolivian Minister called at Foreign Office today with further appeal that Brazil and the United States should join the League Committee at Geneva, and was told in definite terms that under no circumstances could Brazil consider such action. His attention was called to previous official statements to the same effect.
6. No answer has as yet been received to Brazil’s request for explanation of Cantilo’s speech and Lamas’ position. The Foreign Minister feels that if Lamas has indeed turned the matter over to the League it will be desirable that Brazil and the United States agree upon a statement to be published that inasmuch as this has been done our participation has automatically come to an end, although we shall, of course, continue to hope for a successful solution.
7. The Secretary General of Foreign Office said today in his judgment there was no likelihood the present mediation or League negotiations would solve the problem and that under certain conditions the best hope might lie in a Brazilian-American effort. Aside from one or two details of procedure his chief thought was that the best hope for a solution lay in holding the negotiations in Washington. He said it would be unwise to have them in Bio de Janeiro as there would be inevitably certain amount of Latin American jealousy which might prove to be an obstacle.