Staatssecretaris of Foreign Affairs, Jan Bogaart :
Gentlemen,
With our host's permission, may I observe that when considering this matter, the future state of Bolivia a generation from now is of import. If Bolivia is not to degenerate to a den of bandits and outlaws, some central structure is necessary, if only to ward off Paraguayian adventurers. To support that structure will require an economically viable nation. At the same time we have the matter of reasonable reparations in proportion to the outrages sustained as a natural consequence of Bolivia's aggression.
To achieve that goal, the Chilean proposals regarding the Grand Chaco may veer close to a resolution. Presuming there is indeed resources in the Grand Chaco area, it would indeed be desirous to deny them to any Bolivian warlords seeking to renew the conflict.
Perhaps a Chilean protectorate for the span of a generation, twenty years, with a schedule of payments to the involved parties, would both help supply a balm to the fiscal wounds of the aggrieved, while also limiting the funds available for Bolivian rearmament. This of course is flawed if the Grand Chaco proves barren, but if the aggrieved parties are willing to let the potential revenue serve as security for a proportion of the indemnity, we can avoid crippling the Bolivian economy further.
This however brings us to the territorial issues, which are understandably more sensitive. I believe the Chilean concerns are of greatest import, so let me make a suggestion in this regard, hopefully I do not offend..
The rail line for Ollague, Chile to the hub at Uyuni makes control of that portion of Potosi important for Chile. However the headwaters of the Pilcomayo and Mamore rivers near Sucre are important wheat and corn lands(1), and the rail line(2) that connects them to La Paz travels through the cities of Potosi, Rio Mulato and Oruro.
Would the Chileans consider a slight reduction to allow this lifeblood to flow? Perhaps a border that includes the Uyuni- Villazon railway by following the mountain ridges to the east from the border northward to just outside of Rio Mulato, to the southern and western shores of Lago Poopo and thence to the Rio Desaguadaro? This would add the majority of the territory, rich in grazing and several types of mining to the Chilean state, while still leaving areas vital to a future viable Bolivia.
(1) well currently, I presume to a degree then too.
(2) 1955 map, if not a railway in 1934, then likely the major road.
hmm bigger maps than anticipated.