File No. 838.51/341a.

The Secretary of State to Minister Blanchard.

Sir: I enclose copy of a draft of the proposed convention between the United States and the Republic of Haiti and a copy of the Convention [Page 348] concluded between the United States and the Dominican Republic on February 8, 1907.4

The draft of a proposed convention with the Government of Haiti is fashioned after the convention with the Dominican Republic, so far as that convention is applicable to the situation’ in Haiti, and follows closely its terms and language, except in two particulars, namely:

First, in Article I of the proposed convention is to be found a provision for the designation by the President of the United States of a Financial Adviser to the Republic of Haiti, with enumerated functions and duties, in case such appointment should be deemed necessary or should be requested by Haiti; this is not found in the convention concluded with the Dominican Republic. Such a provision, if incorporated in the convention which may be concluded with Haiti, would be of great advantage to that Government in aiding in the improvement of its finances, in strengthening its credit, in enabling it to attain its objects respecting its internal affairs and in providing additional checks against graft and imposition upon that Government in the administration of its finances. If it should be advanced that the authority of the President to designate a financial adviser would be implied from the authority to be extended to him to appoint a receiver, assistants and other employees, the Department feels that the authority should be explicitly stated in the convention for the guidance of the high contracting parties and should not be left to be implied. Recently it was found advisable to install a financial adviser to the Government of Santo Domingo, with functions and duties similar to those enumerated in Article I of the enclosed draft. For the reasons stated, the Department regards the provision for the designation of a financial adviser as of importance.

Second, Article IX of the proposed convention is not in the Convention concluded with the Dominican Republic. The advantages to accrue to the Government of Haiti from the incorporation of Article IX in the convention which may be concluded will advance themselves to that Government. In addition to those enumerated in support of the provision for a Financial Adviser, this Article IX will add to the stability and security of the Government of Haiti, secure the free course of its imports and exports against interference from all directions and will make clear the authority of the United States to aid in the attainment of each and all the objects comprehended within the convention, and this matter had best not be left to implication.

You will, therefore, sound the Government of Haiti for an expression of its attitude toward the proposed convention and its views of the terms of the draft, and advise the Department of any objections which may be advanced to any of the proposed articles, specialty noting and reporting them, and from time to time report the progress which you may make.

The Department will arrange to have Captain Russel’s ship, the South Carolina, to call at Port au Prince to take you to a conference with President Zamor to whom, when you shall see him, you will convey assurances of the most cordial friendship of the United [Page 349] States for the Government and people of the Republic of Haiti and of the desire of this Government to aid in the purposes of that Government for the tranquility, security and prosperity of the Republic. You will also keep the Department fully advised of the military situation ill the Island.

I am [etc.]

W. J. Bryan
.
[Inclosure.]

Draft of a convention between the United States and the Republic of Haiti.

preamble.

The United States and the Republic of Haiti desiring to confirm and strengthen the amity existing between them by the most cordial cooperation in measures for their common advantage, and the Republic of Haiti desiring to remedy the present unsatisfactory condition of its revenues and finances to check the loss of much of its revenues due in part to internal disturbances, to provide against injudicious increase of its public debt, to inaugurate a comprehensive system of public accounts and audits, to make adequate provision to meet its exterior debts to maintain the tranquillity of the Republic, to carry out plans for the economic development and prosperity of the Republic and its people, to strengthen its credit and generally to fix and maintain its finances upon a firm and stable basis, and the United States being in full sympathy with all of these aims and objects and desiring to contribute in all proper ways to their accomplishment,

The United States and the Republic of Haiti, having resolved to conclude a convention with these objects in view, have appointed for that purpose Plenipotentiaries, on the part of the United States, and on the part of the Republic of Haiti,

who, having exhibited to each other their respective powers which are seen to be full in good and true form, have agreed as follows:

I.

The President of the United States shall appoint a General Receiver, who, with such assistants and employees as the President of the United States may appoint or authorize, shall collect, receive and apply all customs duties on imports and exports accruing at the several custom houses and ports of entry of the Republic of Haiti; and if he shall deem it necessary and expedient, or if the Haitian Government shall request, the President of the United States shall designate a Financial Adviser to the Republic of Haiti who shall devise an adequate system of public accounting, aid in increasing the revenues and adjusting them to the expenses, inquire into the validity of the debts of the Republic, enlighten both Governments with reference to all eventual debts, recommend improved methods of collecting and applying the revenues, and generally exercise the functions of a comptroller of accounts.

II.

The Government of the Republic of Haiti will provide by law or appropriate decrees for the payment of all customs duties to the General Receiver, and will extend to the Receivership all needful aid and full protection in its execution of the powers conferred and duties imposed herein; and the United States on its part will extend like aid and protection.

III.

Upon the appointment of the General Receiver the Government of the Republic of Haiti, in cooperation with the General Receiver, shall collate, classify, arrange and make full statement of all the debts of the Republic, the amounts, [Page 350] character, maturity and condition thereof, and the interest accruing and the sinking fund requisite to their final discharge.

IV.

All sums collected and received by the General Receiver shall be applied by him, first, to the payment of the salaries and allowances of the General Receiver, his assistants and employees and expenses of the Receivership, including the salary and expenses of the Financial Adviser, if one shall be appointed; second, to the interest and sinking fund of the public debt of the Republic of Haiti; and, third, remainder to the Haitian Government for purposes of current expenses.

In making these applications the General Receiver will proceed to pay salaries and allowances monthly and expenses as they arise, and on the first of each calendar month will set aside in a separate fund the quantum of the collections and receipts of the previous month, found to be a fair contribution to the ultimate sum required to meet interest and provide the sinking funds.

V.

The expenses of the Receivership, including salaries and allowances of the General Receiver, his assistants and employees, shall not exceed five per centum of the collections and receipts from customs duties, unless by agreement by the two Governments.

VI.

The General Receiver shall make monthly reports of all collections, receipts and disbursements to the appropriate officer of the Republic of Haiti and to the Department of State of the United States, which reports shall be open to inspection and verification at all times by the appropriate authorities of each of the said Governments.

VII.

The Republic of Haiti, shall not increase its public debt except by previous agreement with the President of the United States, and shall not contract any debt or assume any financial obligation unless the ordinary revenues of the Republic available for that purpose, after defraying the expenses of the Government, shall be adequate to pay the interest and provide a sinking fund for the final discharge of such debt.

VIII.

The Republic of Haiti will not without the assent of the President of the United States modify the customs duties in a manner to reduce the revenues therefrom; and in order that the revenues of the Republic may be adequate to meet the public debt and the expenses of the Government, to preserve tranquillity and to promote material prosperity, the Republic of Haiti will cooperate with the Financial Adviser, if one is appointed, in his recommendations for improvement in the methods of collecting and disbursing the revenues and for new sources of needed income.

IX.

The United States shall have authority to prevent any and all interferences with the receipt, collection, or free course of the customs, or with the free exercise of any of the powers conferred or duties imposed herein upon the Receivership or with the attainment of any of the objects comprehended in this convention.

X.

This agreement shall continue in force for a period of ____ years from and after its ratification by the Contracting Parties in accordance with their respective laws.