The Secretary of State to Minister Dawson.

No. 111.]

Sir: The department thinks that if the Government of Santo Domingo wishes now to put in force the act of the Dominican Congress of June 27, 1905, by applying 30 per cent of the export duties received hereafter to the construction of railroads on account of the state, the Government of the United States should not regard such action as a violation of the true intent of the modus vivendi. In that case it would not be necessary to make any agreement or take any action. Colonel Colton, receiver of customs, would simply begin from the 1st of June to pay the amount of 30 per cent export duties over to the railroad fund, instead of sending it to the bank in New York.

I do not, however, think that any attempt should be made to withdraw any money which has already been remitted to the City Bank in New York; that money has been lawfully paid to the bank under the authority of the Dominican Government. It has been specifically devoted to the creditors of Santo Domingo, and no part of it could be withdrawn without creating serious disturbance and distrust, the consequences of which might be most unfortunate.

I am, sir,

Elihu Root.