The three month period set by the League of Nations for the settlement of the Chaco dispute has expired. As a result of Paraguay's refusal to submit the matter to arbitration she has automatically withdrawn from the League.

Victorious finally in the warfare, Paraguay feels apparently that nothing is to be gained by arbitration. Her army at Villa Montes holds a strategic position relative to Bolivia's oil fields Even though she has broken the League covenant thus theoretically exposing herself to international coercion, Paraguay, it would seem, prefers the bird in hand to the possible outcome of the League's peaceful settlement.

As a result of this, the arms embargo is now lifted from Bolivia but maintained on Paraguay. What will be the result? These South American belligerents have shown themselves capable of sustained if not always active warfare. Six months of unrestricted access to military supplies may well resuscitate Bolivia. If so, we will find that the League has not only lost another member but has inadvertently aided in prolonging the hostilities.