Kundt accepted the posts, adopted Bolivian citizenship and headed the program of rearming Bolivia during the 1920s, and the planning to occupy the Chaco.

As a general he continued the reorganisation he had begun in 1911, and became very popular as – unlike much of the Bolivian officer corps – he was concerned with the well-being of the troops.

[2] Kundt later boasted to an American reporter that "if the Paraguayans ever dare to take up the Chaco issue again, I shall make a military walkover right over to their capital of Asunción, and settle the matter once and for all".

Bolivia's tanks and tankettes proved almost useless in navigating the thick scrub and quebracho of the Gran Chaco, and were easily isolated and destroyed or seized by Paraguayan infantry using grenades and mortars.

The loss of the tanks forced the Bolivian government to purchase a quantity of bipod-mounted Oerlikon SSG36 anti-tank rifles[3] to deal with their potential recovery and use by the Paraguayan army.

Kundt repeatedly eschewed flanking manoeuvres for futile frontal infantry assaults against well-defended Paraguayan positions using machine guns with interlocking fire zones.

After Bolivia's defeat in Campo Vía, Kundt was relieved of command on 12 December 1933 as Chief of Staff by Bolivian President Daniel Salamanca.