File No. 839.51/1958

The Secretary of the Navy ( Daniels) to the Secretary of State

Sir: I have the honor to forward herewith for consideration and for such action as may be deemed advisable by the Department of State, a letter dated May 2, 1918, from the Military Governor of Santo Domingo relative to the indebtedness of the Dominican Republic, and requesting that the public debt of that country be increased by such an amount as shall be found by the Dominican Claims Commission of 1917 to be justly due claimants.

Sincerely yours,

Josephus Daniels
[Page 375]
[Enclosure]

The Military Governor of Santo Domingo ( Knapp) to the Secretary of the Navy ( Daniels)

At the time when military government was proclaimed, the Dominican Republic had increased its public debt contrary to the provisions of Article 3 of the treaty concluded February 8, 1907, which requires the consent of the United States to any such increase. Such consent had not been obtained and this neglect of the Dominican Government was, indeed, one of the principal reasons for the intervention of the United States.

2.
In January 1917, within two months after the proclamation of military government, I wrote requesting that a claims commission be appointed to pass upon claims of indebtedness against the Dominican Republic in order that this indebtedness might be cleared up. I was directed to appoint such a commission myself, which was done. The commission has been at work for over nine months upon claims whose nominal aggregate is over $14,000,000.
3.
The action of the United States Government in directing the appointment of a claims commission gives inferential approval to such increase of the public debt of the Dominican Republic as shall result from the aggregate of claims approved by the commission. No formal, specific authorization for the increase has ever been made, however, and it appears wise that such formal, specific authorization should be given.
4.
As the Military Governor of Santo Domingo, and acting for the Dominican Republic, I therefore request that the State Department specifically authorize the increase of the public debt of the Dominican Republic by such an amount as shall be found by the Dominican Claims Commission of 1917, now in session, to be justly due claimants.
H. S. Knapp

The Secretary of State to the Secretary of the Navy ( Daniels)

Sir: I have the honor to acknowledge the receipt of your letter undated enclosing, for the consideration of this Department and for such action as may be deemed advisable, a letter dated May 2, 1918, from the Military Governor of the Dominican Republic, regarding the indebtedness of that country and urging that the public debt of the Republic might be increased by such an amount as the total found due to the claimants by the Dominican Claims Commission of 1917.

I have the honor to say, in reply, that this Department does not appear to be in possession of copies of the correspondence relative to the appointment of the Claims Commission referred to by the Military Governor of the Dominican Republic in paragraph 2 of his communication of May 2, 1918, and that it would appreciate being supplied with such copies for use in considering the Governor’s request for authorization of an increase in the public debt of the Dominican Republic.

The Department will also appreciate being informed whether it is proposed to pay the awards of the Claims Commission at the time when they are made, or to await the termination of the commission’s labors before making any such payments.

I have [etc.]

Robert Lansing