File No. 839.51/967.
The Secretary of State to the Secretary of War.
Washington, March 10, 1913.
Sir: I have the honor to inform you that on March 1, 1913, the Minister for Foreign Affairs for the Dominican Republic addressed a note to the American Minister at Santo Domingo City, enclosing a copy of a contract made with the National City Bank of New York providing for a loan to the Dominican Republic of $1,500,000, and officially asked that the Government of the United States agree to the proposed increase of the Dominican public debt as provided in the Convention of February 8, 1907, between the two Governments, and the Minister for Foreign Affairs informed the American Minister that the Dominican Government agreed that the proceeds of the loan should be disbursed subject to such supervision as the Government of the United States might indicate.
The American Minister in acknowledging this note informed the Minister for Foreign Affairs, pursuant to the instructions of this Department, that:
The Government of the United States, pursuant to the terms of the Convention between the United States and the Dominican Republic of February 8, 1907, hereby agrees with the Government of the Dominican Republic that the Government of the Dominican Republic may increase its public debt to the amount of one million five hundred thousand dollars in accordance with the terms of the proposed contract with the National City Bank of New York, a copy of which has been transmitted to this Legation; provided, however, that all advances or disbursements of the proceeds of this loan shall be made only by check or order of the Minister of Finance of the Dominican Republic specifically reciting the proposed application of the disbursement, such check or order [Page 467] to be countersigned as providing for a proper expenditure by the Minister or Secretary of the Legation of the United States in the Dominican Republic, and by a person designated for this purpose by the Receiver General of Dominican Customs.
In view of the above, I have the honor to request that the appropriate telegraphic instructions be issued, to the Receiver General of Dominican Customs.
The Department is now informed that the American Minister is bringing to the United States with him true copies of the correspondence exchanged between the Dominican Foreign Office and the American Legation, as well as a true copy of the loan contract as signed. So soon as these documents are received by the Department copies will be transmitted to you for your files. Meanwhile I have the honor to enclose, herewith a copy of the contract and of the coupon note1 as they appear to be from information before this Department.
I have [etc.]
- Not printed.↩