File No. 839.51/1474
It is earnestly hoped that you may find it convenient to call at the
Department at an early date in order that this important matter may be
discussed with you personally. An expression from you as to the date
when a conference with you can be arranged will be appreciated.
[Inclosure.]
The Department of State
to the Dominican Legation.
memorandum.
The United States desires to assist the Dominican Republic in putting
certain needed reforms into operation to insure the peace and
prosperity of that country.
First. A decree placing the collection of the
internal revenues under the receivership. At the present time the
internal revenue is hypothecated for many years in advance, and
brings in no revenue to the Dominican Government. It is estimated
that from this source the Government should receive approximately
two thousand dollars daily, whereas at the present time it is
receiving nothing. This Department is informed that revenue stamps
can be redeemed at the present time for about ten cents on the
dollar, and it is strongly recommended that all hypothecated stamps
should be immediately redeemed at the best rate possible.
Second. Official recognition of Charles M.
Johnson [Johnston] as comptroller of finances for the Dominican
Republic, whose duties shall be: (a) to prepare a budget for the
Dominican Republic based upon his knowledge of income and probable
expenditures; this budget to be rigidly adhered to; (b) to approve
and countersign all payments made by the Dominican Government, it
being understood that no payment shall be valid unless countersigned
by the comptroller. This reform is really essential if the finances
of the Dominican Republic
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are to be rescued from the deplorable condition in which they are at
present. It is estimated that under the present administration of
Dominican finances the debt of the country is increasing not less
than one thousand dollars daily. It may be of interest in this
connection to state that the Chief of the Bureau of Insular Affairs
of the War Department, in a communication bearing date of January 4,
1915, reports that, carrying out instructions of this Department of
September 15, 1914, October 23, 1914, and December 14, 1914,
directing that the general receiver of Dominican customs pay to the
Dominican Government the sum of five thousand dollars daily from and
including September 1, 1914, and an additional sum of two thousand
dollars daily for the period of October 23–31, 1914, inclusive,
there have been paid to the Dominican Government sums in excess of
the customs revenues properly accruing to that Government as
follows:
| For September, 1914 |
$114,194.17 |
| For October, 1914 |
97,267.98 |
| For November, 1914 (estimated) |
58.147.19 |
| For December, 1914 (estimated) |
75,000.00 |
| Total (estimated) |
344,609.34 |
The Bureau of Insular Affairs further states that to reimburse the
general receiver of Dominican Customs for the excess amounts paid by
him to the Dominican Government as aforesaid it was necessary, or it
will be necessary, to draw upon the convention fund with the
Guaranty Trust Company of New York, and such withdrawals from the
convention fund, amounting to $344,609.34, are treated “as advances
to the Dominican Government to be paid at a future date.” He further
suggests the advisability of asking for a ratification by the
Dominican Congress of the advances from the convention fund that
have been made solely upon Executive request.
Unless Mr. Johnson [Johnston], the recently appointed comptroller of
finance, is given such authority as he must have in order to
successfully carry on the work for which he has been selected, it
will be useless to continue him in the service, and without the
supervision of such an officer it is very evident that the finances
of the Dominican Republic will continue to drift into an even more
deplorable condition.
Third. As the Dominican Government is
threatened by no external enemies, the presence of a Dominican army
(which is always in an inefficient state of discipline) is regarded
as an incentive to disaffected political leaders to start internal
resolutions. As the expenditures of the military
establishment amount to nearly fifty per cent. of the total
budget, it is most desirable that President Jiménes issue a
decree largely reducing the expense of the army, so that education
and public works may receive their just proportion of the public
revenues. The United States will be pleased to give President
Jiménes any assistance he may desire in reorganizing the police
force of the Republic, or in the creation of a constabulary, to take
the place of the an and rural guard as now constituted.
Fourth. Amending the contract of Mr. A. J.
Collett. It is necessary that clauses III and V of the present
contract be amended in order that this official may have proper
authority to render the most efficient service to the Dominican
Government.
Proposed amendment to Clause III:
The Director General of Public Works shall be removed only
for cause, satisfactory proof of which shall be first
submitted by the Dominican Government to the Department of
State at Washington.
Proposed amendment to Clause V:
The Director shall be given authority to employ and discharge
his subordinates, it being understood that in recommending
appointees to the Dominican Government preference shall be
given to citizens of the Dominican Republic who may be
qualified and competent in every way to properly discharge
the duties which may be assigned them by the Director
General of Public Works.
Fifth. Wireless and land telegraph and
telephone systems. It is earnestly recommended that these systems be
placed under the control of the Director General of Public Works.
This change is recommended in order that the three services may be
under one head, which means their most economical
administration.
Superintendent of the wireless and land telegraph and telephone
systems. The United States Navy Department recommends that these
systems be placed
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under
the direction of an American manager. Mr. Roscoe Kent, an
experienced operator, has been selected for this work, and is ready
to enter upon his duties when a suitable contract can be agreed
upon. The compensation of this officer is to be three hundred
dollars, gold, a month, and two hundred dollars traveling expenses,
each way, from his home in the United States to Santo Domingo. He is
to be allowed thirty days’ leave of absence each year, exclusive of
the time occupied in traveling from Santo Domingo to New York City
and return.
In order to insure an efficient service, it is necessary that the
superintendent of the wireless and land telegraph and telephone
systems shall be free to employ and discharge all subordinates; and
that he shall be removed from office by the Dominican Government
before the expiration of his contract only for proven incompetency
or for malfeasance in office, and it is extremely desirable that in
the event of his discharge written charges should be filed at the
American Legation for transmission to the Department of State for
its consideration, it being understood that the appointee shall not
be removed by the Dominican Government without the approval of the
Department of State.
This contract, as well as the one with Mr. Collett, the Director
General of Public Works, should be for three years, renewable,
however, with the consent of both parties.
