File No. 838.77/153

The Secretary of State to Minister Blanchard


Urgent. Your December 21, 10 a.m. Controversy between Haitian Government and railway company remains unsettled after nearly six months of correspondence and negotiations. Railroad company has notified Department that officials of French Government on behalf of French bondholders are pressing their officers to effect an adjustment by some means or that bondholders will foreclose property and that after first of year they will commence proceedings if no definite result is immediately reached.

Railway company has asked Department to take necessary steps to arrange for an arbitration of outstanding questions. Department instructs you to show this cable immediately to Ruan and consult with him as to best and most expeditious means of settling this long-standing dispute in a definite manner.

Will Haitian Government authorize Ruan to treat directly with representative of railroad company and make definite settlement. Four months ago Haitian Government informed this Government [Page 814] that Ménos had all details and could deal with representatives of railroad and therefore it is unbelievable that it has not complete record and reports which could have been given forthwith to Ruan.

Cable immediately result of conferences with Ruan and his views.