Chaco War - Origins, Aftermath

(1932) A territorial struggle between Bolivia and Paraguay in the disputed Northern Chaco area. Owing to the brilliant tactics of Col José Félix Estigarribia (1888–1940), Paraguay won most of the area, and a peace treaty was signed in 1938. Around 50 000 Bolivians and 35 000 Paraguayans died in the war.

The Chaco War (1932–1935) was fought between Bolivia and Paraguay over control of great part of the Gran Chaco region of South America, which was incorrectly thought to be rich in oil.

Origins

Though the region was sparsely populated, control of the Paraguay River running through it would have given one of the two landlocked countries access to the Atlantic Ocean. Two large oil companies were involved in the exploration: Standard Oil (later Exxon), which backed Bolivia, while Shell Oil supported Paraguay. Meanwhile, Paraguay had begun to cultivate the region, making it the world's largest producer of yerba mate, while the small indigenous population of Guaraní Indians was related to that country's own Guaraní population.

Aftermath

Cease Fire

By the time a ceasefire was negotiated on June 12, 1935, Paraguay had seized control over most of the region. But Paraguay's guerilla style of fighting compared to Bolivia's more formal strategy enabled Paraguay to win more battles.