724.34119/722: Telegram
The Ambassador in Argentina (Weddell) to the Consul at Santos (Parsloe)81
For Welles from Braden. Saturday afternoon Finot stated to Conference lie appreciated that the Paraguayan political situation made a definite territorial agreement impossible at this time. My impression is that Finot also is not averse to the delay. Upon his initiative the following signed statement was issued to the public:
“The Ministers of Foreign Relations of Paraguay and Bolivia before returning to their respective countries consider it opportune to manifest that the first personal interview which took place developed with great cordiality and they hope with reason that it will result in acts which will increase this good spirit.
“They also state that they exchanged ideas in order reciprocally to make known their viewpoints on the possible solution of the pending differences between the two countries.
“The Chancellors of Bolivia and Paraguay took advantage of this opportunity to reiterate their confidence in and to give well-deserved recognition to the Peace Conference and especially to its President, Dr. Saavedra Lamas, and to the subcommittee composed of the Chancellors of Brazil, Chile and the United States, the latter represented by Ambassador Braden, who have contributed to create this cordial and beneficial meeting.”
I expressed my chagrin at this small accomplishment in view of the auspicious circumstances surrounding our recent negotiations but accepted it because of declarations by Finot and Stefanich that they both believed a final territorial settlement possible within a reasonable period. Both parties understand that if direct agreement is not reached within a reasonable period of two or three months the Conference will then declare direct negotiations terminated. I doubt whether even without Saavedra Lamas’ meddling Stefanich in view of Paraguayan political uncertainty would have had the courage to reach definite agreement now.
The ex-belligerent viewpoints have at least been clarified, both Foreign Ministers contemplate a cash consideration, Finot has discussed a free instead of a sovereign port and Stefanich a permanent frontier within the present occupied area. We agreed this morning to continue territorial discussions with Stefanich during next few days. Also despite his statement to Finot that Paraguay would not remove police from the road I shall press before he departs for a satisfactory adjustment of the control question which if consummated will bring about immediate exchange of diplomatic representatives. [Braden]
- Copy transmitted to the Department from Argentina without covering despatch; received January 5, 1937, 12:47 p.m.↩