File No. 893.032/5.]

The American Minister to the Secretary of State .

No. 136.]

Sir: I have the honor to enclose you herewith, two copies of the message which President Victoria presented to Congress on the occasion of his inauguration as Constitutional President of the Republic on February 27th, with a translation of the portions thereof of direct interest to the United States.

I have [etc.]

William W. Russell.
[Inclosure.—Translation.—Extract.]

[Untitled]

The incident with the United States1 arose on account of the creation, with the approval of Congress, of the present municipal surtax, and of a stamp tax on various industrial articles of import; both taxes collected in accordance with a schedule.

The Dominican Government, dissenting from the views of the worthy representative of the Washington Government on this subject, made what was thought to be a reasonable objection to the memorandum which the Minister presented to our Chancery.

In that extensive communication it was shown how we interpret the Convention of February 8, 1907, as regards local usage and consumption taxes, which, by virtue of an administrative autonomy derived from the Constitution, can be created by the Municipalities with the mere approval of the Legislative Power, without prejudicing in the least the reciprocal rights and obligations arising from the above-mentioned international document.

As a result of this discussion, the United States Minister ended the correspondence, sustaining in the name of his Government the position taken at the beginning, without insisting on making any special objection, and expressing his confidence that in future the Dominican Government will comply with the obligations imposed upon it by the Convention of 1907.

Our old boundary question with Haiti is daily growing more vexing and conflicting, in view of the inefficacy of all negotiations which have been conducted for many years to settle our frontier problem, with nothing accomplished as yet, for special circumstances with which you are familiar.

The Pedernales incident which occurred last year, and which, through the tender of the good offices of the United States, resulted in the acceptance of an arbitration for arranging the diferendum; but as yet not even the preliminaries have been arranged, owing to the limited powers of the Haitian Commissioners, by reason of which the conferences that were taking place at Washington in the beginning of 1911 had to be suspended. That incident, I repeat, has brought about another one, quite serious for us, and which may endanger our peaceful relations with the Government and people of the Republic of Haiti if we do not reach an amicable and satisfactory solution in accordance with the rights on our side in the matter.

In the days that followed the violent death of President Cáceres, the military forces of Haiti occupied a portion of our territory, under pretext of assisting [Page 340] in the capture of the assassins of the above mentioned Magistrate, and established headquarters with large quantities of ammunition in Tête-à-l’Eau, and in a place called Misión, all under the command of the principal authority of Thomazeau.

All the pacific measures taken to solve this new and serious question have been of no avail up to the present, and to the repeated claims and protests of our Minister in Port-au-Prince, under instruction from the Executive, the Minister for Foreign Affairs of the neighboring Republic has replied that the points lately occupied by the military forces of Haiti are places that belong to them, and have always been considered so.

Although this incident has not yet been settled, the Dominican Government has a defined and determined view of the question, and is awaiting the moment when, without impairing any of our territorial rights, and in accordance with equity and justice, this question will be settled amicably, as today it is more important than ever for the interests of both Republics.

I trust that that moment is not far distant, and that very soon there will be a reconciling of that disparity of views which for so long a time has kept us in constant worry and conflict with our neighbors. * * *