174 Chapter 2
Bolivian forces countered with the capture of Paraguayan-controlled territory. Para-
guayan forces then pushed the Bolivian troops back past their original lines. Fighting
continued nearly through 1933. A truce took effect in December 1933, but fighting
broke out again on January 6, 1934.
Paraguay held the advantage for most of the dispute, and Bolivia asked the League
of Nations for intervention in 1932. On January 16, 1935, the League recommended
that the arms embargoes be lifted for Bolivia but not for Paraguay. On February 24,
the embargoes against Bolivia lifted, and Paraguay left the League. The Commission
of Washington, the ABCP group (Argentina, Brazil, Chile, and Peru), and neutral
states of the December 1933 Pan American Conference attempted to mediate the con-
flict. Bolivia and Paraguay signed a ceasefire on June 12, 1935.
The peace talks were scheduled to begin in August, with both countries ready to
compromise. However, cross-border recriminations began in earnest, culminating
in Bolivia threatening to stop demobilization if it did not get its way at the peace
conference and Paraguay responding by threatening to militarily help two Bolivian-
controlled territories secede. The peace talks ultimately included agreements for a
prisoner release and both countries pledge to demobilize their militaries to a popula-
tion of 5,000 each. Paraguay held 17,000 Bolivian prisoners of war (POWs) while
2,500 Paraguayans were held by Bolivia.
Paraguay announced that it would release a certain number of prisoners as a quid
pro quo with Bolivia and then release the rest once the peace agreement had been
signed by Bolivia. Paraguay also refused to discuss a claim of ownership by Bolivia
of a port on the Paraguay River during the talks.
Outraged, Bolivia threatened to suspend its demobilization efforts unless Paraguay
released the Bolivian POWs immediately. Paraguay refused and in response actually
mobilized its 18- to 21-year-olds on September 15, 1935. On October 5, Bolivian
officers were returned by Paraguay, and on October 7, the neutral military mission
returned from the Chaco to announce that both countries’ militaries had been success-
fully demilitarized down to 5,000 each.
Coding changes: End Date changed from June 12, 1935.
MID#1029
Dispute Number: 1029
Date(s): June 1938 to July 21, 1938
Participants: 145 Bolivia/150 Paraguay
Outcome (and Settlement): Compromise (Negotiated)
Fatalities: None
Narrative: In March 1938, Argentina again forced the issue of settling the Chaco
War (MID#1027). In fact, it was Argentina’s determination to end this issue that got
Paraguay to begin the peace process in earnest. On May 27, 1938, a proposal was
finalized that redrew the border in the Chaco. Paraguay got most of what it wanted,
reflecting their victory in war, and a line was drawn from Esmeralda on the Rio Pilco-
mayo, northeast to a point called “27 November,” southwest of Ingavi. From there, the
line passed between Ravelo and Ingavi to Rio Paraguay, 7,500 meters north of Bahia
Negra. In the understanding of the conference participants, the desert region between