The decisive Brazilian-American military victory over Peronist Argentina has enabled the victorious Quito Pact to essentially impose any terms it wishes on the defeated party. Nevertheless, in the interests of maintaining long-term regional peace, the Quito Pact has opted to focus on restoring a stable situation in Paraguay, confident that the Argentinian people will turn away from expansionism and militarism after Peron’s fiasco.

The agreement negotiated on the USS Midway anchored at Montevideo is as follows:

• All Argentine troops will leave Paraguay as soon as practicable.

• Argentine forces will be replaced by a multinational Quito Pact force composed of the following:

• The multinational force will remain to defend Paraguay’s borders as long as is necessary at the request of the Paraguayan government.

• The United States and Brazil will arrange all logistical support for the multinational force. The United States in particular will supply the necessary funds and any equipment needed.

• The Quito Pact will also provide a technocratic advisory committee to aid the much-reduced Paraguayan government and civil service in restoring effective governance.

• Argentine Collaborators not complicit in war crimes will be given free passage to neutral Uruguay.

• Units of the pro-Argentine Paraguayan army which defected to the Brazilian forces will be amnestied, disarmed, and peacefully released from service.

• The legitimate Paraguayan government-in-exile will return to take power and hold elections within the year.

• All Quito pact punitive measures against Argentina will cease and all Argentine prisoners will be released upon the completion of the withdrawal.

• Argentina will pay $60 million in reparations to fund Paraguay’s reconstruction.

• Argentina will recognize the government-in-exile and the results of the elections.