File No. 888.51/437a.
The Secretary of State to Minister Blanchard.
Washington, November 23, 1915.
Now that the treaty has been ratified and with a view to show every respect for the legitimate contractual obligations of Haiti, the Navy Department was requested on the 18th instant to instruct Admiral Caperton that he might upon the request of the Haitian Government apply the remainder of the revenues collected by him after setting aside sufficient for the support of the Dartiguenave Government, for public works and for the organization of the constabulary, for the purposes of and in accordance with the pledges thereof which have been heretofore made or given by the Haitian Government. Such authorization was deemed advisable in view of requests of the Bank that service of foreign bonds be resumed and of the Central Railroad that Government of Haiti pay certain sums due it.
The Department is informed that the Admiral has found objections to proposed procedure and recommends immediate loan. The Department believes that this can be arranged as soon as modus vivendi has been entered into and commission arrives in Washington. In the meanwhile, should the Haitian Government so request as has been done according to the Department’s information in the case of the Central Railroad of Haiti, the Admiral should pay if not the entire amount requested at least such proportionate amount or amounts as may be now or become in future available.
Referring to the Admiral’s radiogram of November 19, the Department understood that present advances to the Haitian Government took the place of the $100,000 mentioned in the Department’s telegram of September 15, 5 p.m. (see Legation’s telegram September 29). But should the impression prevail that this Government’s good faith was involved, the Admiral may make immediate payment of $100,000 out of funds in hand, provided that this would be satisfactory to the Haitian Government, which may prefer that this money be used as far as possible for the purposes to which it is pledged.
The Department will be glad to have you take up this matter with the Admiral and report by telegraph with your recommendations.