File No. 838.516/78.
Minister Blanchard to
the Secretary of State.
No. 38.]
American Legation,
Port au Prince,
February 15, 1915.
Sir: Referring to my cables of February 11 and
February 13 with reference to the protest of this Legation in support of
the protest of the Bank against the execution of the decrees of January
22 and 27, the one with reference to the emission of Treasury notes to
the amount of two million gourdes, the other taking from the Bank the
service of the Treasury of the State, I have the honor to enclose
herewith copy and translation of a note8 from the director ad interim of the Bank, dated
February 2, 1915, forwarding to this Legation copies of the protest of
the Bank in this matter; and also copy and translation of another
note8 under date of
February 3, 1915, requesting the Legation to sustain the protest above
mentioned.
[Page 513]
In pursuance of this request, this Legation on February 9 addressed a
note to the Foreign Office, copy of which is herewith enclosed,
protesting against the aforesaid measures as constituting a formal
violation of the contract of the Bank and thus compromising American
interests in that institution, as reported in my cable of February
11.
Under date of February 13, the Foreign Office addressed to this Legation
a note in reply, in which, as you will observe, the Minister of Foreign
Affairs lays particular stress, once again, upon the fact that the Bank
is a French company, and on this ground repulses the protest of the
Legation of the United States as not qualified, the French Minister
being the only proper authority here to protest in favor of a French
moral person.
After stating the above, the Minister adds as a matter of information for
the Legation that the National Bank having violated Articles 12, 15 and
16 of its contract, having refused to the Haitian Government the
financial cooperation which it had contracted to furnish, having removed
from the Public Treasury a considerable amount, and obstinately
retaining in its possession other sums belonging to the State, has added
to the case of force majeure created by the European war a new case of
force majeure which has placed the Government in the imperative
obligation of providing for public administration and national
existence.
He concludes, as you will further observe, by stating that if the Bank is
not in accord with the Government, Article 24 of the contract provides a
means of settling the differences by arbitration, and that the Haitian
Government is ready to submit thereto the questions at issue.
The French Minister has received from the Department of Foreign
Relations, in reply to his protest, a communication embodying the
information furnished this Legation on the subject.
The Director of the Bank has been apprised of the contents of the note of
the Department of Foreign Relations addressed to this Legation.
I have [etc.]
[Inclosure 1.]
Minister Blanchard to the Minister for
Foreign Affairs.
American Legation,
Port au Prince,
February 9, 1915.
The Banque Nationale de la République d’Haiti has brought to the
attention of the Legation of the United States, as violating the
rights of the Bank and the American interests therein engaged, the
decrees of January 22 and 27, one with reference to the emission of
Treasury notes up to the amount of two million gourdes, the other
taking from the Bank the service of the Treasury of the State.
The Legation of the United States protests against these measures,
which constitute a formal violation of the contract of the Bank and
thus compromise the American interests in this institution.
[Page 514]
[Inclosure 2—Translation.]
The Minister for Foreign
Affairs to Minister Blanchard.
Department of State for Foreign
Relations,
Port au Prince,
February 13, 1915.
Mr. Minister: The Legation of the United
States made to my Department on February 9 a protest against the
presidential decrees of January 22 and 27 which constitute,
according to it, “a formal violation of the contract of the Bank and
thus compromise the American interests in this institution.”
In response to this note, I see myself obliged again to call your
attention to the fundamental fact that the contract which your
Legation invokes to protest against the acts of the Haitian
Government determines that the Bank is a company of French
nationality. It is with this French company that the Haitian
Government has contracted and it is absolutely incontestable,
according to law, that this company could not cease to be French
because of American interest therein.
My Department consequently rejects, as incompetent, the protest of
the Legation of the United States presented for a French moral
person, depending, in this respect, on the French Legation at Port
au Prince.
The situation thus put in point, the protest thus set aside, the
Department, always disposed not to refuse any useful information,
does not hesitate to say to your excellency that the National Bank
of the Republic of Haiti having violated Articles 12, 15 and 16 of
its contract, having refused to the Government the financial
cooperation which it engaged itself to furnish to it, having
conveyed away from the public vault considerable amounts, and
obstinately retaining in its possession other sums which belong to
the State, has added to the case of force majeure already created by
the European war a new case of force majeure which has placed the
Haitian Government not only in the evident right, but in the
imperative obligation itself to provide the service of the public
administration and national existence.
The Government has the conviction to act in the fullness of its
rights. If the Bank is not in accord with it, it has only to conform
itself to Article 24 of its contract, which obliges the two parties
to submit their differences to arbitration.
The Government of the Republic declares itself ready to submit to
this arbitration the questions in debate.
Please accept [etc.],
