File No. 639.003/47
Memorandum of the Office of the Solicitor for the Department of State
Dear Mr. Woolsey: I am not informed as to the conversation which, it appears, you have had with a representative of the Latin American Division on this subject, but I submit the following observations respecting the request of that Division that this office [Page 381] draw up an agreement between the United States and the Military Government of the Dominican Republic:
which will provide for the recognition of the President of the United States of modifications in the import duties of the Dominican Republic that may from time to time be recommended as needful by the Military Government there, and thus make any such action by the Military Government conform to Article 3 of the convention of 1907.
The treaty provisions referred to are as follows:
Until the Dominican Republic has paid the whole amount of the bonds of the debt, its public debt shall not be increased except by previous agreement between the Dominican Government and the United States. A like agreement shall be necessary to modify the import duties, it being an indispensable condition for the modification of such duties that the Dominican Executive demonstrate and that the President of the United States recognize that, on the basis of exportations and importations to the like amount and the like character during the two years preceding that in which it is desired to make such modification, the total net customs receipts would at such altered rates of duties have been for each of such two years in excess of the sum of $2,000,000 United States gold.
If I understand it correctly, the desire of the Latin American Division is that a blanket agreement be made under these treaty provisions to cover all modifications recommended by the Military Government. In view of the treaty requirements as to the demonstration by the Dominican Executive and the recognition by the President of the United States of a certain state of facts as to customs receipts, it would seem that the desired blanket agreement could not well be made and that in case of any particular modification in the import duties desired by the Military Government, such demonstration and recognition would have to take place before an agreement could be made in the particular instance.
By reference to the attached papers1 it will be seen how this matter of modification of import duties was dealt with at that time, in accordance with the treaty requirements mentioned, namely, by note from the Dominican Minister advising of the proposed changes in duties and making the demonstration mentioned, and by an answering note from the Secretary of State, embracing the recognition by the President of the fact required to be demonstrated, and, therefore, the agreement of the Government of the United States to the proposed modification.
On the other hand, it is recognized that the Latin American Division may have in mind that the United States Government and the Military Government of Santo Domingo, in their relations with each other, are not bound by the requirements of the treaty mentioned, and that, therefore, it is advisable to make a new agreement to take the place of the provisions of Article 3 of the treaty, which shall, at the same time, conform as nearly as possible thereto. If that be the view which the Department takes of the relationship in question, I should be glad to be so advised since I had supposed that the Military Government represented the Government of the Dominican Republic and, as such representative, is bound by the treaties in force with the Republic.