Pitiantuta Lake incident On 15 June 1932, a Bolivian detachment captured and burned to the ground the Fortín Carlos Antonio López at Pitiantutá Lake. The captain in charge had disobeyed explicit orders by Bolivian President
Daniel Salamanca to avoid provocations in the Chaco region. One month later, on 16 July, a Paraguayan detachment drove the Bolivian troops from the area. The lake had been discovered by Paraguayan explorers in March 1931, but the Bolivian High Command was unaware of that when one of its aircraft spotted the lake in April 1932. After the initial incident, Salamanca changed his status quo policy over the disputed area and ordered the outposts of Corrales, Toledo, and
Fortín Boquerón to be captured. All three were soon taken, and in response, Paraguay called for a Bolivian withdrawal. Salamanca instead demanded that they were included in a "zone of dispute". On a
memorandum directed to Salamanca on 30 August, Bolivian General
Filiberto Osorio expressed his concerns over the lack of a plan of operations and attached one that focused on an offensive from the north. Quintanilla also asked for permission to capture two additional Paraguayan garrisons: Nanawa and Rojas Silva. In August, Bolivia slowly reinforced its 4,000-man First Bolivian Army, which was already in the conflict zone, with 6,000 men. The breaking of the fragile
status quo in the disputed areas of the Chaco by Bolivia convinced Paraguay that a diplomatic solution on agreeable terms was impossible. Paraguay gave its general staff orders to recapture the three forts. In August, Paraguay mobilized over 10,000 troops and sent them into the Chaco region. Paraguayan Lieutenant Colonel
José Félix Estigarribia prepared for a large offensive before the Bolivians had mobilized their whole army.
First Paraguayan offensive , 1932 Fortín Boquerón was the first target of the Paraguayan offensive. The Boquerón compound was guarded by 619 Bolivian troops and resisted a 22-day siege by a 5,000-man Paraguayan force. An additional 2,500 Bolivians attempted to relieve the siege from the southwest but were beaten back by 2,200 Paraguayans, who defended the accesses to the siege area. A few Bolivian units managed to enter Fortín Boquerón with supplies, and the
Bolivian Air Force dropped food and ammunition to the besieged soldiers. Having begun on 9 September, the siege ended when Fortín Boquerón finally fell on 29 September 1932. After the fall of Fortín Boquerón, the Paraguayans continued their offensive and executed a
pincer movement, which forced some of the Bolivians to surrender. The Paraguayans had expected to lay a new siege on Fortín Arce, the most advanced Bolivian outpost in the Chaco, but when they got there, they found it in ruins. The 4,000 Bolivians who were defending Arce had retreated to the southeast to
Fortín Alihuatá and
Saavedra.
Bolivian offensive In December 1932, Bolivia's war mobilization had concluded. In terms of weaponry and manpower, its army was ready to overpower the Paraguayans. General
Hans Kundt, a former German officer who had fought on the
Eastern Front of
World War I, was called by Salamanca to lead the Bolivian counteroffensive. Kundt had served intermittently as military advisor to Bolivia since the beginning of the century and had established good relationships with officers of the Bolivian Army and the country's political elites. The Paraguayan Fortín Nanawa was chosen as the main target of the Bolivian offensive and was to be followed by the command centre at Isla Poí. Their capture would allow Bolivia to reach the Paraguay River and to endanger the Paraguayan city of
Concepción. The capture of the fortresses of Corrales, Toledo, and Fernández by the Bolivian Second Corps were also part of Kundt's offensive plan. In January 1933, the Bolivian First Corps began its attack on Fortín Nanawa. The stronghold was considered by the Paraguayans to be the backbone of their defenses. It had zig-zag trenches; kilometres of barbed wire; and many machine-gun nests, some of which were embedded in tree trunks. The Bolivian troops had stormed the nearby Paraguayan outpost of Mariscal López, which isolated Nanawa from the south. On 20 January 1933, Kundt, who personally commanded the Bolivian force, launched six to nine aircraft and 6,000 unhorsed cavalry supported by 12
Vickers machine guns. However, the Bolivians failed to capture the fort but formed a defensive amphitheater in front of it. The Second Corps managed to capture Fortín Corrales and Fortín Platanillos but failed to take Fortín Fernández and Fortín Toledo. After a siege that lasted from 26 February to 11 March 1933, the Second Corps aborted its attack on Fortín Toledo and withdrew to a defensive line, built 15 km from Fortín Corrales. After the ill-fated attack on Nanawa and the failures at Fernández and Toledo, Kundt ordered an assault on Fortín Alihuatá. The attack on the fort overwhelmed its few defenders. The capture of Alihuatá allowed the Bolivians to cut the supply route of the Paraguayan First Division. When the Bolivians were informed of the isolation of the First Division, they launched an attack on it. The attack led to the
Battle of Campo Jordán, which concluded in the retreat of the Paraguayan First Division to Gondra. In July 1933, Kundt, still focusing on capturing Nanawa, launched a massive frontal attack on the fort in what came to be known as the
Second Battle of Nanawa. Kundt had prepared for the second attack in detail by using artillery, airplanes, tanks, and
flamethrowers to overcome Paraguayan fortifications. The Paraguayans, however, had improved existing fortifications and built new ones since the First Battle of Nanawa. The Bolivian two-pronged attack managed to capture parts of the defensive complex but was soon retaken by Paraguayan counterattacks by
reserves. The Bolivians lost more than 2,000 men, who were injured or killed in the Second battle of Nanawa, but Paraguay lost only 559 men who were injured or killed. The failure to capture Nanawa and the heavy loss of life led Salamanca to criticize the Bolivian high command and to order it to spare more men. The defeat seriously damaged Kundt's prestige. In September, his resignation of his position as commander-in-chief was not accepted by the president. Nanawa was a major turning point in the war since the Paraguayan Army regained the strategic initiative, which had belonged to the Bolivians since early 1933.
Second Paraguayan offensive In September, Paraguay began a new offensive in the form of three separate encirclement movements in the Alihuatá area, which was chosen since its Bolivian forces had been weakened by the transfer of soldiers to attack Fortín Gondra. As a result of the encirclement campaign, the Bolivian regiments Loa and Ballivián, totaling 509 men, surrendered. The Junín regiment suffered the same fate, but the Chacaltaya regiment escaped encirclement because of the intervention of two other Bolivian regiments. The success of the Paraguayan Army led Paraguayan President
Eusebio Ayala to travel to the Chaco to promote
José Félix Estigarribia to the rank of general. In that meeting, Ayala approved Estigarribia's new offensive plan. On the other side, the Bolivians gave up their initial plan of reaching the Paraguayan capital,
Asunción, and switched to defensive and attrition warfare. The Paraguayan Army executed a large-scale pincer movement against Fortín Alihuatá and repeated the previous success of those operations; 7000 Bolivian troops had to evacuate Fortín Alihuatá. On 10 December 1933, the Paraguayans finished their encirclement of the 9th and 4th divisions of the Bolivian Army. After attempts had been made to break through Paraguayan lines and 2,600 of their men had been killed, 7,500 Bolivian soldiers surrendered. Only 900 Bolivian troops, led by Major
Germán Busch, managed to slip away. The Paraguayans obtained 8,000 rifles, 536 machine guns, 25 mortars, two tanks, and 20 artillery pieces from the captured Bolivian forces. By then, Paraguayan forces had captured so many Bolivian tanks and armored vehicles that Bolivia was forced to purchase Steyr Solothurn 15 mm anti-tank rifles to fend off its own armor. After the armistice had ended, the Paraguayan Army continued its advance by capturing the outposts of Platanillos, Loa, Esteros, and Jayucubás. After the Battle of Campo de Vía in December, the Bolivian Army built up a defensive line at Magariños-La China. The line, carefully built, was considered to be one of the finest defensive lines of the war. However, a small Paraguayan attack on 11 February 1934, managed to breach the line to the surprise of the Paraguayan command, which forced the abandonment of the whole line. A Paraguayan offensive towards Cañada Tarija managed to surround and neutralize 1,000 Bolivian troops on 27 March. In May 1934, the Paraguayans discovered a gap in the Bolivian defenses, which would allow them to isolate the Bolivian stronghold of Ballivián and to force its surrender. The Paraguayans worked all night to open a new route in the forests to make the attack possible. When Bolivian reconnaissance aircraft noticed the new path being opened in the forest, a plan was made to let the Paraguayans enter halfway up the path and then to attack them from the rear. The Bolivian operation resulted in the
Battle of Cañada Strongest between 18 and 25 May. The Bolivians managed to capture 67 Paraguayan officers and 1,389 soldiers. After their defeat at Cañada Strongest, the Paraguayans continued their attempts to capture Ballivián. It was considered to be a key stronghold by the Bolivians, mostly for its symbolic position, since it was the most southeastern Bolivian position that remained after the second Paraguayan offensive. In November 1934, Paraguayan forces once again managed to surround and to neutralize two Bolivian divisions at El Carmen. The disaster forced the Bolivians to abandon Ballivián and to form a new defensive line at
Villa Montes. On 27 November 1934, Bolivian generals confronted Salamanca while he was visiting their headquarters in Villa Montes and forced him to resign. They replaced him with Vice President
José Luis Tejada. On 9 November 1934, the 12,000-man-strong Bolivian Cavalry Corps managed to capture Yrendagüé and to put the Paraguayan Army on the run. Yrendagüé was one of the few places with fresh water in that part of the Chaco. While the Bolivian cavalry was marching towards La Faye from Yrendagüé, a Paraguayan force recaptured all of the wells in Yrendagüé. Upon their return, the exhausted and thirsty Bolivian troops found themselves without water, and the already-weakened force fell apart. Many were taken prisoner, and many of those who had avoided capture died of thirst and exposure after wandering aimlessly through the hot, dry forest. The Bolivian Cavalry Corps had been considered one of the best units of the new army that was formed after the armistice.
Espionage and counterespionage In February 1934, Emilio Sfeir—a Lebanese-Bolivian merchant residing in
Jujuy, Argentina—masterminded the planning and execution of the capture, in Argentine territory, of Juan Valori, the most important Paraguayan spy of the Chaco War.
Last battles After the collapse of the northern and the northeastern fronts, the Bolivian defenses focused on the south to avoid the fall of their war headquarters and supply base at
Villamontes. The Paraguayans launched an attack on
Ybybobó and isolated some of the Bolivian forces on the Pilcomayo River. The battle began on 28 December 1934 and lasted until early January 1935. It caused 200 Bolivian troops to be killed and 1,200 to surrender, but the Paraguayans lost only a few dozen men. Some fleeing Bolivian soldiers were reported to have jumped into the fast-flowing waters of the Pilcomayo River to avoid capture. After that defeat, the Bolivian Army prepared for a last stand at Villamontes. The loss of that base would allow the Paraguayans to reach the proper Andes. Colonel
Bernardino Bilbao Rioja and Oscar Moscoso were left in charge of the defenses after other high-ranking officers had declined. On 11 January 1935, the Paraguayans encircled and forced the retreat of two Bolivian regiments. The Paraguayans also managed in January to cut off the road between Villa Montes and
Santa Cruz. The Paraguayan commander-in-chief,
Estigarribia, decided to launch a final assault on Villa Montes. On 7 February 1935, around 5,000 Paraguayans attacked the heavily fortified Bolivian lines near Villa Montes with the aim of capturing the oilfields at
Nancarainza, but they were beaten back by the Bolivian First Cavalry Division. The Paraguayans lost 350 men and were forced to withdraw north toward Boyuibé. Estigarribia claimed that the defeat was largely because of the mountainous terrain in which his forces were not used to fighting. On 6 March, Estigarribia again focused all his efforts on the Bolivian oilfields, this time at
Camiri, 130 km north of Villa Montes. The commander of the Paraguayan 3rd Corps, General Franco, found a gap between the Bolivian 1st and 18th Infantry regiments and ordered his troops to attack through it, but they became stuck in a salient with no hope of further progress. The Bolivian Sixth Cavalry forced the hasty retreat of Franco's troops to avoid being cut off. The Paraguayans lost 84 troops who were taken prisoner, and more than 500 dead were left behind. The Bolivians lost almost 200 men, but unlike their exhausted enemies, they could afford a long battle of attrition. On 15 April, the Paraguayans punched through the Bolivian lines on the
Parapetí River and took over the city of
Charagua. Although the Bolivians' plan fell short of its target of encircling an entire enemy division, they managed to take 475 prisoners on 25 April. On 4 June 1935, a Bolivian regiment was defeated and forced to surrender at Ingavi, on the northern front, after a last attempt had been made to reach the Paraguay River. On 12 June, the day that the ceasefire agreement was signed, Paraguayan troops were entrenched only 15 km away from the Bolivian oil fields in
Cordillera Province. The military conflict ended with a comprehensive Paraguayan victory, but from a wider point of view, it was a disaster for both sides. Bolivia's
Criollo elite had forcibly pressed large numbers of the male indigenous population into the army even though they felt little or no connection to the nation, ==Foreign involvement==