No. 838.77/170
Minister Blanchard to
the Secretary of State
[Extract]
No. 136
American Legation,
Port au Prince
,
April 30, 1917
.
Sir: Referring to the Department’s cable of
March 1, 4 p.m., and to the Department’s instruction No. 115 of March 2,
1917, in regard to the differences between the Government of Haiti and
the Compagnie [Page 832] Nationale des
Chemins de Fer d’Haiti, I have the honor to forward herewith copy of a
note addressed by this Legation to the Foreign Office under date of
March 8, 1917, as well as copy and translation of the reply thereto
dated April 23, 1917.
As you will observe, the Minister for Foreign Affairs states, in the,
above reply, that the Council of the Secretaries of State decided on
March 15, 1917, that the railroad company is not entitled to the
interest guaranteed because the company had voluntarily suspended
operating during the period corresponding to that guarantee, and that by
its fault it had incurred foreclosure which had been legally declared;
and that with respect to the bonds for the 2K230m., the signature is
subordinate to the acceptance by the railroad company of the agreement
signed between the Haitian Minister at Washington and Mr. Farnham on the
15th of February last.
In this connection I have the honor to report that pursuant to my note of
March 8, I had two interviews with Mr. Borno, the then Minister of
Foreign Affairs, to press the points at issue, the result of which was
that I was given to understand that the bonds would be signed and that
as to the payment of the six semiannual coupons now in default, there
was under consideration a proposition, as a solution of this point, to
extend the concession of the Compagnie Nationale des Chemins de Fer
d’Haiti for a period equivalent to that during which payment had not
been made. Mr. Borno stated that he looked forward to the Legation’s
good offices in having this matter presented to the railroad company, to
which I agreed.
I advised Mr. Charles Dupuy, the representative of the railroad company
here, of the above, which, later on, he informed me had been confirmed
to him by Mr. Borno to whom he had remarked that this solution could not
be a satisfactory one to the present bondholders, for the reason that
they would not receive the interest due them.
I have [etc.]
[Inclosure 1]
Minister Blanchard to the Minister of
Foreign Affairs
No. 136
American Legation,
Port au Prince
,
March 8, 1917
.
Mr. Minister: The Department of State
informs this Legation that the Haitian Minister in Washington and
the representative of the Compagnie Nationale des Chemins de Fer
d’Haiti have agreed upon the principal points of the differences
between the Haitian Government and the railroad company, that a list
of unsettled points to be referred to Mr. Ruan, as umpire, has been
forwarded by mail, and that as to the two points which were
considered as belonging outside of matters under discussion, the
Department, in order to facilitate the settlement of the question,
offered to exert its diplomatic good offices in bringing the same
before the Haitian Government.
In consequence, acting under instructions from the Secretary of
State, I have the honor to present, for the favorable consideration
of your excellency’s Government, the above-mentioned two matters,
which are, (1) the affixing of the signature of the Minister of
Finance of the Republic of Haiti, or his designate to the guarantee
of the Haitian Government inscribed upon the bonds of the Compagnie
Nationale des Chemins de Fer d’Haiti to an amount of $44,600.00
which were duly authorized by the Haitian Government in June 1914,
to be issued upon 2.23 kilometers of principal track constructed and
put in operation in May 1914; and (2) the payment of the six
semiannual coupons, now in [Page 833]
default, with accrued interest thereon upon the authorized
outstanding bonds of the Compagnie Nationale des Chemins de Fer
d’Haiti at the earliest date upon which the Financial Adviser shall
have available for such purpose funds of the Government of
Haiti.
My Government is confident that the Government of Haiti will give
these matters immediate attention and will issue instructions at the
earliest possible moment for the signing of the bonds, and will take
up as soon as possible the question of the payment of the interest
on the railroad bonds.
Be pleased to accept [etc.]
[Inclosure 2—Translation]
The Minister for Foreign
Affairs to Minister Blanchard
Ministry for Foreign Affairs,
Port au Prince
,
April 23, 1917
.
Mr. Minister: By a letter of the 8th of
March last, addressed to the Department of Foreign Affairs, your
excellency asked, in conformity with instructions from the Secretary
of State, that the following points, related to the affair of the
Compagnie Nationale des Chemins de Fer d’Haiti, be examined:
- 1st.
- The signature of the Government of Haiti on the bonds
amounting to $44,600 relative to the construction of 2K230m.
of road completed at Port au Prince and at St. Marc;
- 2d.
- The payment of six coupons of guarantee of interest plus
the interest in arrears.
In reply, I have the honor to inform your excellency that the Council
of the Secretaries of State has decided in their sitting of the 15th
of March, that the guarantee of interest is not due to the Compagnie
Nationale des Chemins de Fer d’Haiti, because it voluntarily stopped
the traffic in the course of the period corresponding to this
guarantee and that, by its own fault, it has incurred the
foreclosure which has been legally pronounced.
In regard to the bonds relative to the 2K230m., the signature is
subordinate to the acceptance by the company of the agreement signed
between Mr. Solon Ménos and Mr. Farnham at Washington the 15th of
February last.
Please accept [etc.]
