724.34119/327: Telegram

The Ambassador in Argentina (Weddell) to the Secretary of State

305. From Braden. My 303, December 24, 4 p.m.

1.
December 22nd formula drafted by us with Ayala and accepted by him was forwarded to the Department by air mail December 27. Since our return we have run into difficulties with both the Paraguayans and the Bolivians and have been intently engaged in trying to overcome them.
2.
Zubizarreta, in addition to several minor objections to text of December 22nd formula, expressed unwavering opposition to a provision included in it at Ayala’s suggestion whereby Bolivia and Paraguay would agree to abandon recourse to the Responsibilities Tribunal provided for in article 1, clause 7 of the June 12th Protocol. He tendered his resignation as chairman of the Paraguayan delegation to Ayala, stating that he could not sign the December 22nd formula and would oppose it in the Senate.
3.
We submitted the December 22nd formula to the Bolivian delegation on December 24 and they transmitted it to their Government. The reply received December 27 was a complete rejection of the formula insisting on the December 2nd proposal.
4.
On December 28 we suggested to the Bolivian and Paraguayan delegations that they might agree on the December 2nd proposal with certain changes which were included in the December 22nd formula. [Page 198] These are that (a) protocolized act would be subject to approval by the Bolivian and Paraguayan Congresses; (b) provisions extending effectiveness of security measures, including lines of separation, would be incorporated in the protocolized act instead of being an interpretation of the June 12th Protocol contained in a Conference resolution and (c) these measures would be maintained “until the provisions of article 1, clause 3 of the June 12th Protocol are fulfilled” instead of “as long as the Peace Conference does not dissolve.”
5.
The Bolivian and Paraguayan delegations have expressed satisfaction with this suggestion. In an attempt to compose his differences with Ayala, Zubizarreta since December 28 has been endeavoring to get the former’s approval but so far has no definite answer. Should this be favorable the suggestion will be submitted to the Bolivian Government with which less difficulty is expected.
6.
If other questions can be worked out, net payment by Bolivia to Paraguay for maintenance of prisoners will probably be set at 2,400,000 pesos. Ayala agreed confidentially to accept this amount which Elío has indicated Bolivia could pay.
7.
Repeated to Rio de Janeiro by telegraph; Asunción and La Paz by mail. [Braden.]
Weddell