The Acting Secretary of State to Minister Dawson.
Washington, January 25, 1905.
It is necessary in order to insure approval of protocol to make some alterations. Secure signature to draft which follows. This is to take the place of agreement signed by you and Dillingham on the 20th. It should be thoroughly satisfactory to the Dominican Government, as the changes are not considerable arid only relate to matters which will contribute toward our success in relieving the Dominican Republic of its difficulties.
You will explain to the Dominican Government that whatever you signed was ad referendum.
Desirable to avoid undue publicity during negotiations. Suggest this to Dominicans also.
Whereas the Dominican Government, in view of the debts which burden the Republic, the imminent peril and urgent menace of intervention on the part of nations whose citizens have claims already established or to be established, finding itself, as it does, unable peremptorily to fulfill its obligations, on account of the condition to which political disturbances and other causes have brought the treasury, the result being that these obligations are falling due without its having been possible to pay them, or even the interest thereon, desires to reach an agreement with all its creditors, and that the government itself succeed in assuring the regular receipt of revenues sufficient for the payment of its internal administration and the maintenance of its administrative autonomy without any interruption by the exigencies of foreign creditors by internal political disturbances; and
Whereas the Government of the United States of America, viewing any attempt on the part of governments outside of this hemisphere to oppress or control the destiny of the Dominican Republic as a manifestation of an unfriendly disposition toward the United States, is in compliance with the request of the Dominican Government disposed to lend its assistance toward effecting a satisfactory arrangement with the creditors of the Dominican Government.
Whereas the Government of the United States of America, guaranteeing the territorial integrity of the Dominican Republic, and in compliance with the request of the Dominican Government, is disposed to lend its assistance toward effecting a satisfactory arrangement with all the creditors of the Dominican Government.
The Dominican Government, represented by the secretary of state, of finance and commerce, Citizen Federico Velasquez, and the United States Government, represented by its minister resident, Thomas C. Dawson, have agreed and covenanted as follows:
- First. The United States Government agrees to attempt the adjustment of all the obligations of the Dominican Government, foreign as well as domestic; the adjustment of the payment and of the conditions of amortization; the consideration of conflicting and unreasonable claims; and the determination of the validity and amount of all pending claims. If in order to reach such adjustment it shall be considered necessary to name one or more commissions, the Dominican Government shall be represented on said commissions.
- Second. In order to enable the United States Government to render the assistance above mentioned, it shall take charge of the existing custom-houses and those which may be hereafter created, shall name the employees necessary to their management, and shall collect and take charge of all custom-house receipts. The Dominican Government may appoint in each of the custom-houses an officer for the purpose of making an inspection on behalf of its interests.
- Third. Out of the revenues which shall be collected in all the customhouses of the Republic, the Government of the United States shall deliver to the Dominican Government a sum which shall not be less than 45 per cent of the total amount collected, for the purpose of meeting the need of the public service, and which the Dominican Government shall receive in monthly payments from the date of the taking possession of the custom-houses by the officials of the United States, divided into four installments in the following manner: Forty-five per cent of the total sum collected monthly in periods ending on the 8th, 15th, 22d, and last day of each month.
- Fourth. The Government of the United States will apply the 55
per cent which it retains toward the payment of:
- The employees of all the custom-houses.
- The interest, amortization, and installments of the Dominican debt, foreign and domestic, in accordance with what is hereinbefore provided, according as it shall be fixed and liquidated.
- The whole surplus which may remain at the end of each fiscal year shall be delivered to the Dominican Republic or shall be devoted to the payment of its debts, if it shall so determine.
- Fifth. The collectors of the custom-houses must send monthly to the contaduria-general and the department of treasury statements of the corresponding income and outgo, and annually a general statement which shall embrace the total of what has been collected and paid out.
- Sixth. Any reform of the system of duties and taxes shall be made in agreement with the President of the United States, and therefore the present tariff and port dues may not be reduced except with his consent as long as the whole of the debt shall not have been completely paid, with the exception of the export duties upon national products, which the Dominican Government remains authorized to abolish or reduce immediately, but not to increase said export duties or its public debt without the consent of the President of the United States.
- Seventh. The Government of the United States, at the request of the Dominican Republic, shall grant such other assistance as the former may deem proper to restore the credit, preserve the order, increase the efficiency of the civil administration, and advance the material progress and welfare of the Dominican Republic.
- Eighth. This agreement shall take effect after its approval by the United States Senate.