The Chaco War (Guerra del Chaco, Cháko Ñorairõ) was fought from 1932 to 1935 between Bolivia and Paraguay, over the control of the northern part of the Gran Chaco region (known in Spanish as Chaco Boreal) of South America, which was thought to be rich in oil. The war is also referred to as La Guerra de la Sed (Spanish for "The War of Thirst") in literary circles since it was fought in the semi-arid Chaco. The bloodiest interstate military conflict fought in South America in the 20th century, it was fought between two of its poorest countries, both of which had lost territory to neighbours in 19th-century wars.
During the war, both landlocked countries faced difficulties shipping arms and supplies through neighbouring countries. Bolivia, in particular, faced external trade problems and poor internal communications. Although Bolivia had lucrative mining income and a larger and better-equipped army, a series of factors turned the tide against it, and Paraguay controlled most of the disputed zone when the war had ended.
The peace treaties ultimately granted two-thirds of the disputed territories to Paraguay.
The origins of the war are commonly attributed to a long-standing territorial dispute and to the discovery of oil deposits on the eastern Andes range; in 1929, the Treaty of Lima ended the hopes of the Bolivian government of recovering a land corridor to the Pacific Ocean, which was thought imperative to further development and trade.
Both Bolivia and Paraguay were landlocked. The 600,000 km2 Chaco was sparsely populated, but control of the Paraguay River running through it would provide access to the Atlantic Ocean. That became especially important to Bolivia, which had lost its Pacific coast to Chile during the 1879 War of the Pacific. Paraguay had lost almost half of its territory to Brazil and Argentina in the Paraguayan War of 1864 to 1870 and was not prepared to surrender its economic viability.
In international arbitration, Bolivia argued that the region had been part of the original Spanish colonial province of Moxos and Chiquitos to which Bolivia was heir.
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