File No. 838.51/423.

Chargé Davis to the Secretary of State.

[Telegram.]

Referring to the Department’s telegram of September 27. Paymaster Conrad and I had an interview with Minister for Foreign Affairs and Minister of Finance this morning. The Haitian Government believes its relations with Bank should remain in statu quo until such time as all differences between them can be settled and therefore Bank guaranty of notes inadvisable and declares it unacceptable. However, the Haitian Government is seriously embarrassed by lack of funds with which to continue payments already begun. I am convinced that the Government is using its best efforts to secure ratification by Congress but its efforts are being seriously hampered and ratification endangered by the withholding of the [Page 525] gourdes. If the Department still thinks that gourdes now held should not be issued, respectfully submit that some other arrangements be made to provide the Government with funds with which to live pending ratification. I suggest that either immediate loan of $100,000 be arranged or authorization given for customs officials to deliver this amount in gold or its equivalent in gourdes as the same becomes available. In view of the importance of the above with reference to efforts of the Government to secure ratification, an early reply requested.

Davis.