File No. 838.51/427.

Admiral Caperton to the Secretary of the Navy.

[Telegram—Paraphrase.]

With regard to the issue of 500,000 gourdes the Haitian Government does not wish to enter into any joint agreement with the Bank and therefore no such plan can be accepted. At the same time having counted definitely on using the bills now withheld by me, the Haitian Government claims to be seriously embarrassed. Need for immediate funds seems to be real. Am I authorized to furnish Haitian Government such funds as can be spared from customs receipts if the State Department does not intend to release bills without condition nor to provide loan prior to ratification of treaty?

Caperton.