File 838.77/99a.

The Secretary of State to Minister Blanchard.


The Department has been informed by Mr. Farnham that the Haitian Government has served a notification on the National Railroad Company of Haiti of its intention to foreclose and take possession of the railroad property on the 27th instant under claim of non-compliance with Article 11 of the railroad contract.

You are instructed to inform the Government of Haiti that such method of procedure for foreclosure is, in the opinion of this Government, directly contrary to the provisions of Article 10 of the Cahier des Charges attached to railroad contract, which specifically provides for this contingency. If the reports are correct and the Haitian Government really intends to proceed in the manner first outlined as to taking possession of the property, you are instructed to inform the Government of Haiti that the United States will feel compelled to take such measures for the safeguarding of the rights of this company as it may deem necessary under the circumstances.

The Department desires that Minister of Public Works should be informed of the foregoing. Report fully by cable.