File No. 839.51/1447.

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President Báez desires more money, as he told Controller, in order to leave office without adding to debt. Jimenistas desirous United States should place itself on record acknowledging elections as soon as possible, so as to abate pretensions Horacistas. If Provisional President should promulgate law establishing functions financial expert and accepting Controller’s new budget, then if Jiménez and Velásquez were to be pledged in writing to support as condition precedent to recognition Controller legislation and turn over collection of internal revenue to Receivership, all Dominican receipts and disbursements would be controlled. Johnston’s new budget will provide for repayment $250,000 yearly public works money, and $500,000 which fully redeems internal revenue taxes. To retire Báez December 1st, without giving administration additional floating debt, would cost, says Johnston, $70,000 extra; Johnston and myself consider outlay was already worth while. President seemed receptive to idea.

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