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of the investment merit of a loan when it expresses none, correspondence pursuant to that announcement is the most inappropriate occasion for giving bankers credit information.

American bankers may at will, and frequently do, have recourse for information to the Department of Commerce, which is charged with the dissemination of commercial information and which has established in the Bureau of Foreign and Domestic Commerce a Finance and Investment Division. This is the normal channel for inquiry for such bankers as may desire to supplement other available information with that obtainable from the information services of the Government. Subject to such censorship and editing as the Department may undertake, reports of foreign service officers on financial subjects are transmitted in routine to the Department of Commerce. It is felt that only in case of information presumably not available through this or other channels to bankers exercising due diligence would there arise the exceptional case of any ethical obligation on the part of the Department of State to volunteer credit information to bankers writing the Department for the entirely different purpose of allowing it to express its views on the possible national interests involved in a contemplated loan.

While the Department feels that in view of their responsibilities bankers contemplating the issue of foreign loans must rely primarily upon independent investigation and study and only incidentally upon Governmental sources of information, the Department welcomes the interest which diplomatic officers have taken in reporting particular credit situations regarding which they feel concern.

Such reports are carefully observed by the Department of State and other Departments and, in view of the breadth and importance of American interest in foreign investments, they may serve a very useful purpose through such confidential dissemination as they may be given by the Department of Commerce or as information in the possession of the Department in the event of direct consultation of the Department by interested American citizens.

The Department indicates objection to loans only in view of important interests of national policy. Regarding situations of this degree of importance it will ordinarily have in its possession sufficient information to guide its action without ad hoc consultation of its missions. At times it has consulted its missions upon receiving an inquiry from bankers but the establishment of a routine practice of doing so would not be justified in view of the simplicity of the questions involved in most loan inquiries and of the importance of promptness in replying to them in order that important operations of American bankers be not subjected to the delay often incident to Governmental procedure.

(3) It will be advisable to bring to the attention of Commercial Attachés or Trade Commissioners the policies herein set forth, particularly in the event of negotiations for a Government loan. American officials of Departments other than the Department of State should act in any relations with foreign officials only with the full knowledge and approval of the diplomatic officer in charge of the mission.

I am [etc.]




Bolivia and Paraguay “

The Minister in Paraguay (Kreeck) to the Secretary of State No. 245

ASUNCIÓN, February 9, 1927.
[Received March 17.]

SIR: With reference to the possible submission of the Paraguayan Bolivian boundary question to the Government of Argentina, reported in this Mission's despatch No. 238, dated February 3, 1927,** I have the honor to report as follows.

The Minister of Foreign Affairs offers the information that this morning he received a telegram from the Paraguayan Minister of Hacienda, Dr. Manuel Benítez, now in Buenos Aires, stating that Bolivia had accepted the good offices of Argentina.

He further stated that, under the circumstances, Paraguay would not submit to the United States the note of which he had previously spoken, and of which the Department was informed in this Legation's telegram No. 15 and its despatch No. 203, both of De-' cember 7, 1926.49 At least, not at this time. He is doubtful if Bolivian representatives will appear when the time is set for conference, as upon two former occasions they failed to attend at the agreed time and place.

It is possible, however, he said, that Bolivia might make a pretense of desiring the solution of the question, inasmuch as he had been advised that the Bolivian Minister of Foreign Affairs had stated that he would confer with the Argentine Chancellory during the first week in March.

If the question can be settled by the good offices of Argentina, all well and good, but if from any cause failure should result, Para

"Continued from Foreign Relations, 1926, vol. 1, pp. 531-534.

"Not printed.

Telegram No. 15 not printed; despatch No. 203 printed in Foreign Relations, 1926, vol. 1, p. 533.

guay will immediately ask the United States to solve the difficulty. It is the Minister's opinion that this will be the outcome in the end.

I have [etc.]



The Secretary of State to the Minister in Paraguay (Kreeck).

No. 362

WASHINGTON, March 17, 1927. SIR: The Department has received and read with interest your confidential despatch, No. 238 of February 3 last,50 on the subject of the boundary dispute between Bolivia and Paraguay, of which copies have been sent to the American Minister at La Paz and the Chargé d'Affaires ad interim at Buenos Aires for their confidential information.

It is noted from the last paragraph of your strictly confidential despatch, No. 144 of September 10 last, to which reference is made, that in previous conversations on this subject with the Paraguayan Minister for Foreign Affairs you were careful to avoid any indication or comment as to the possibility that the Government of the United States might be willing to enter into negotiations looking to the settlement of the controversy. The Department assumes that you have consistently maintained this attitude, which has its entire approval. This Government is particularly anxious not to appear in any way to invite a request for its assistance, nor does it wish to predict what its position toward such a request might be. The Department believes that in the circumstances further inquiries on your part might be misunderstood, and therefore desires you to refrain from making them. If the Minister for Foreign Affairs again raises the subject, you will say merely that you will ask the Department for instructions.

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The Chargé in Argentina (Cable) to the Secretary of State
No. 275

BUENOS AIRES, April 29, 1927.
[Received June 8.]

SIR: I have the honor to report that on April 22, 1927, a protocol was signed in Buenos Aires by Dr. Alberto Gutierrez, the Minister

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of Foreign Affairs of Bolivia, and Dr. Lisandro Diaz Leon, the Minister of Paraguay at La Paz, in which Bolivia and Paraguay aecept the good offices of Argentina in the matter of the boundary dispute between the two countries.

It appears that several years ago, at a time when the ParaguayanBolivian relations had reached an acute stage, the Argentine Government tendered its good offices to the nations in question with a view to furthering an amicable settlement of this problem. The signing of the Protocol, therefore, can probably be ascribed to Argentina's efforts. The text of this document has been published by La Prensa, a translation of which reads as follows:

"Messrs. Alberto Gutierrez, Minister for Foreign Affairs of Bolivia, and Lisandro Diaz Leon, National Deputy of Paraguay, having met at the Legation of Bolivia in the City of Buenos Aires, on the 22nd day of the month of April, 1927, and being duly authorized by their respective Governments and animated by the desire to define and fix the international boundaries between the Republics of Bolivia and Paraguay in a friendly and satisfactory manner, have agreed upon the following:

"I. To repeat the acceptance of the good offices tendered by the Government of the Argentine Republic, with a view to promoting the cordial renewal of the negotiations to solve the boundary question existing between the two countries,

"II. For this purpose both parties agree to appoint Plenipotentiaries who will meet in this Capital within ninety days of the approval of this Protocol by the respective d "III. The Plenipotentiaries must define the matters which will form the subject of their deliberations. The arguments or proposals which will be presented in order to determine the boundary may include, in addition to the proof or antecedents of each legal claim, formulas of adjustment or territorial compensations.

"IV. Should it prove impossible to arrive at an agreement respecting the definite determination of the international frontier, the Plenipotentiaries will state the reasons for the disagreement and fix the limits of the zone which will form the subject of the decision of an Arbitral Tribunal to be appointed by mutual agreement.

"V. Each one of these results will be communicated to the Government of the Argentine Republic, under whose good offices the conferences will be held, at the same time that they are transmitted to the respective Governments.

"This Protocol, which is signed in duplicate, will be approved by the respective Governments as soon as possible."2

"Signed: A. Gutierrez
"Signed: Lisandro Diaz Leon."

The Department will note that no mention is made in the Protocol of the character or composition of the Arbitral Tribunal which may be convened, should the nations in question fail to reach a settlement of their dispute.

"Approved by the Governments of Bolivia and Paraguay June 29, 1927. İ).

There has been as yet but little press comment on this event. The Buenos Aires Herald, however, says that Dr. Gallardo and the Argentine Foreign Office deserve all congratulations for their good work of inducing the Governments of Paraguay and Bolivia peacefully to discuss their differences in the calm atmosphere of Buenos Aires. "I have [etc.] PHILANDER L. CABLE.


The Ambassador in Argentina (Bliss) to the Secretary of State No. 26

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BUENOS AIRES, October 3, 1927. [Received October 26.] SIR: With reference to the Embassy's despatch No. 275 of April 29, 1927, I have the honor to inform the Department that in pursuance to the Protocol signed at Buenos Aires on April 22, by Dr. Alberto Gutierrez, the Bolivian Minister for Foreign Affairs, and Sr. Lisandro Diaz Leon, the Paraguayan Minister at La Paz, the International Conference which will attempt to determine the boundary between Paraguay and Bolivia held its first meeting on Thursday, September 29, at 4 o'clock, in one of the rooms of the Foreign Office.

The Paraguayan Commission is presided over by Dr. Eusebio Ayala, former Minister in Washington. The other members are: Señores José P. Guggiari, President of the Chamber of Deputies and leader of the Liberal Party; Francisco G. Chaves, leader of the Republican Party; Fulgencio R. Moreno and Manuel Dominguez. Captain Elias Ayala of the Paraguayan Navy and Sr. José Antonio Moreno are assisting in an advisory capacity, together with Dr. Pedro Saguier, Minister to Argentina.

The leader of the Bolivian Commission is Dr. José Maria Escalier. The other members are Dr. Daniel Sanchez Bustamante, a former Minister for Foreign Affairs and Public Instruction, who represented Bolivia in 1920 at the Assembly of the League of Nations, Sr. Ricardo Mujía and General Carlos Blanco Galindo. Colonel Oscar Mariaca Pando, Dr. Miguel Mercado Moreira and Sr. Julio Gutierrez are acting as advisers of the Commissioners, and Dr. Alberto Diez de Medina, Bolivian Minister to Argentina, is collaborating with the delegates.

The Argentine Government will be represented at the Conference by Dr. Isidro Ruiz Moreno, the Solicitor of the Ministry for Foreign Affairs.

Upon their arrival at the Foreign Office the delegates were received by Dr. Sagarna, the Minister for Foreign Affairs ad interim. After the exchange of credentials Dr. Sagarna, who presided over the first meeting, welcomed the commissioners in the name of President Alvear and explained that Argentina had extended its good offices in the

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