The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1935-06-17
DECENTRALIZATION
new PROBLEM
IN CHACO AREA
Paraguay and Bolivia Face
Huge Unemployment
Difficulties.

This Is m. Isst 81 tvo dispatches on
the Charo var tv John Nehher. former
Unitea Press corrsspandrnt in FaraEuaE-
BY JOHN Vi. WEBER
Unitsd Press star Correspondent
The end OF the Chaco conflict
brings Up the obvious question,
Who won the. war;
Economically. both Bolivia and
Paraguay lost 70. The military VIC
tories OF Paraguay are seemingly
annulled BY inclusion in the peace
protocol Of recognition Of the Pan
American declaration Of Aug ,,
1882. that military conquest con-
ters no sovereignty. Arbitration
VIII eventually decide ownership Of
the vast pear-shaped area over
which rs 900 soldiers OF both cOun-
tries either gave their lives or were
wounded.
The two countries now face the
postwar problems Of economic re-
Mobilization. no easy task today.
With their national industrial and
agricultural life disl0cated. their
finances almost destroyed. and the
prospect Of thousands Of eX-soldiers
trying 20 adjust themselves 10 civil
life once more. both nations VIII
have their hands fun. And the pO-
ntical angle. ever present in Latin
America. viii be an important fac
tor IN any economic improvement.
BoIivia's Debt in Default
Paraguay would appear TO be in a
better position than Bolivia 10 re-
cover from the ravagcs Of the costly
three-year war. Although poorer.
its population is much smaller and
Il is more self-suhcicnt.
Unburdened by heavy foreign debts.
except some that may have been
incurred during the war. Il depends
only upon improvement. however
small in world economic conditions
70 give some measure Of recovery
70 its basic industries.
Bolivian recovery efforts will be
hampered by the country's debt
abroad. in default since 1892. Al
though reduced by devsIuation of
the Amer can dollar. me debt still
represents a heavy burden for the
country. Increased tin and silver
prices. however, VIII aid Bolivia
greatly.
Paraguay Better OF Politically
Politically. Paraguay also seems
more favored than Bolivia. The
presidency Of DR.. EusebiO Ayala has
been marked by submergence of
partisan politics and opposition to
the war policies Of the government
was unknown.
The contrary was true in BO-
ivia. Military disasters eventually
made themselves felt in La Paz with
the oustng Of President Daniel
Salamanca last year. His admins
tratiOn had been under fire from
leading opposition leaders following
the first Bolivian army reverses.
Newspapers were closed and influ-
entail political leaders Of opposition
parties we're eXiled-
The resentment aroused IN pOlit-
zeal and military circles is almost
certain to handicap efforts TO bring
the nation back 70 peace-time re
covery.
No Real Gain From War
Neither country can point 70 any
material gain from the war. Mill
tary success has been Paraguay's.
but the region won has little proved
value. War costs were high. much
beyond the normal financial ca
pacity Of either nation. War in
IDENTITIES seem out Of the question
and only through taxation can post
war expenses be borne.
Materially. both countries suffered
little from the battles. The entire
war was fought II the heart Of the
Chaco. with the exception Of the
last few months when the Para
ouayan army succeeded in crossing
the Parapiti River and invading the
Bolivian province Of Santa Cruz
de IA Sierra. Some air raids against
Paraguayan industrial towns along
the upper Paraguay River brought
actual war as close TO AsunCiOn as
it ever got in the three years OF
fighting.
Neither farms. ranches no. fac
tories in Bolivia or Paraguay were
DESTROYED and both countries can
resume their peaCe-time pursuits
where they left of in 1872 10 so 70
var.
disqualification Is Problem
without doubt. the greatest prob
lem faced by the TWO governments
is the rehabilitation IF the mics
and return Of thousands Of eS-sol-
diers 10 the cities. Usual war vet
eraus' claims must be expected and
added 10 these viii be demands for
government aid in obtaining en-
ployment.
The industries in both countries
are few. Bolivia b0astirg many more
than Paraguay. But in neither can
the thousands OF unemployed for
rer army men be absorbed in sufii-
Gent numbers TO eliminate unem-
r,Iovment. Whether Paraguays plans
Tor colonization OF the ChacO by the
men who fought there viii be sue
cessful is prOblematical.
II Is unlikely any great numbers
will be willing 10 leave their homes
east Of the Paraguay River 10 ven
tire into the ChacO 70 live. The
swamps and jungleS Of that region
may be worth fighting for. but they
are no place 70 build ones home
Pair Sought for Stabbing
Leo V. Elder. 40. Of 3725 Shelby