File No. 839.51/1202.
Minister Sullivan to the Secretary of State.
Santo Domingo, January 22, 1914, noon.
Dominican Government informs me it is becoming impossible to exist and unless a definite financial relief is obtained the members of the Government will abandon struggle. They urge me to say that they have done best to carry out reform program but that financial situation, not of their making, is overwhelming. Many civil employees, including postal carriers, have quit. Dominican Government asserts that present debt is the result of Nouel mis-administration, revolution forced upon them, and a blockade in which Department participated.
Banco Nacional claims further allowances by Department of Dominican’s share of customs results in forcing Banco Nacional unwillingly [Page 199] to increase its loan to Dominican Government. Bank insists that it will go no further with Dominican Government unless Washington acts. I believe that as it is necessary to finance whatever Government exists. Department should endeavor to avoid chaos likely to occur if present Government resigns. Irresponsible Government succeeding might prove difficult and reckless disregarding necessity for honest presidential election which present men understand.
Answering your January 12, 8 p.m. Dominican Government has made no short time loan.
Referring to your January 18, 11 a.m. Grullon has promised constitutional reforms suggested by you will be made. Organic law, constitutional privileges. Constitutional Convention under way. Under Velasquez and Horacio influences, lower House hostile to Bordas, passing accusing resolutions. Senate throws same out. With present Government adopting our reforms and with elections only weeks away, avoidance of confusing changes seems to me highly desirable, as making probable stable, permanent Government. Can Dominican Government as administrative measure arrange with Department some plan releasing Dominican share of customs receipts from its present application to current needs of Government? Respectfully request immediate instructions. Something must be done at once.