File 838.77/105.

Minister Blanchard to the Secretary of State.


Your October 2. In aide memoire replying to my memorandum, Foreign Office confirms views as expressed to me in several interviews and concessions made as follows:

It insists that diplomatic intervention is inadmissible because such is the agreement of the parties in interest and because arbitration, the principle and terms of which are already provided for in the contract, has been adopted as the sole means of settling possible differences between them should there be occasion to have recourse thereto; but through international courtesy grants the request made in the name of the National Railroad Company for a stay of proceedings until December 28, rights of parties reserved. It hopes that during this time the company through authorized representative will make to the Haitian Government propositions for an understanding. The Foreign Office further notes the possibility of proposals tending to a readjustment of contract and possible shortening of route resulting in economy and advantage to the Haitian Government.

The Haitian Government seems to have every disposition to come to an understanding with the company on above basis and its proposals to that end are respectfully submitted to the favorable consideration of the Department.