396	THE AMERICAN CONTINENT	Partin
other of military preparations; and in the first week of July diplo-
matic relations were broken off once more. The Neutral Commission
at Washington continued to urge the two countries to enter into
negotiations for a settlement of their territorial differences, and by the
end of August both Bolivia and Paraguay had agreed to send repre-
sentatives to Washington, though only to discuss the conclusion of
a. pact of non-aggression. After further pressure, in the form of a
joint appeal from all the other nineteen states members of the Pan-
American Union, had been exercised in order to induce the two
countries to take this first step, negotiations actually began in
Washington on the llth November, 1931, under the auspices of the
Neutral Commission, whose chairman was Mr. Francis White, an
Assistant Secretary of State of the United States. Bolivia and Para-
guay both submitted drafts of a pact of non-aggression. The basis of
the Bolivian proposal was that either party should maintain its
existing positions in the Chaco, whereas Paraguay desired the aban-
donment of forts and outposts established since 19071—a measure
which would have compelled Bolivia to evacuate the greater part of
the territory which she had occupied. Since it appeared to be im-
possible to reconcile these proposals, the Neutral Commission pre-
pared a draft of its own, which was presented to the disputants early
in May 1932. This draft provided for the establishment of a neutral
zone between the Bolivian and Paraguayan forces, the investigation
by ad hoc Commissions of any incidents that might occur, and the
resumption of diplomatic relations. It stipulated further that the two
parties should begin negotiations for a final settlement without delay
and should undertake to submit the dispute to arbitration if agree-
ment were not reached within six months.
This draft pact of non-aggression was still under consideration
when the news reached Washington early in July that fighting had
taken place in the Chaco. During the early months of 1932 reports of
intensive military preparations had been received,2 and these reports
had caused concern not only to the American Governments which
were represented on the Neutral Commission but also to the Govern-
ments of the countries adjacent to Bolivia and Paraguay.
Argentina, in particular, had always displayed great interest in the
1 In that year a protocol had been signed providing for an arbitral decision as
to the o-wnership of a specified zone of territory, and for the maintenance of the
status quo pending the settlement of the dispute (seethe Survey for 1930, p. 424).
3 There were also reports that Paraguay was in negotiation over a project for
settling European colonists in the Chaco on a large scale. The Bolivian
Government instructed their Legations and Consulates in Europe to notify
intending colonists that they must apply to Bolivia and not to Paraguay.