I also forward herewith copies of the notes exchanged between the Haitian
Minister of Foreign Affairs and myself, to the effect that the member of
the Claims Commission appointed by the Haitian Government shall meet the
approval of the United States Government.
There is also enclosed a copy of the French-English original retained by
the Haitian Government.
The Financial Adviser to the Haitian Government, Mr. John A. McIlhenny,
who is the bearer of this despatch, having expressed the desire to be
furnished with a certified copy of the Protocol, there is enclosed
herewith an extra English-French copy for the purpose, for certification
by the Department.
[Enclosure 1]
Protocol between the United States of America
and the Republic of Haiti, Signed at Port au Prince October 3,
1919
44
Article I
In pursuance of the objects of the Treaty concluded September 16,
1915, between the United States of America and the Republic of Haiti
to establish the finances of Haiti on a firm and solid basis, the
Government of the United States and the Government of Haiti through
duly authorized representatives agree upon this Protocol for the
purpose of carrying out the objects of the aforesaid Treaty and of
giving effect to Article 12 thereof. It is clearly understood that
this Protocol does not in fact or by implication extend the
provisions of the Treaty of September 16, 1915, hereinbefore
mentioned.
[Page 348]
Article II
Since the settlement by arbitration or otherwise of all pending
pecuniary claims of foreign corporations, companies, citizens or
subjects against Haiti, makes it necessary to assemble, analyze and
adjust such claims, the Government of Haiti agrees to constitute
forthwith a Claims Commission of three members, one member to be
nominated by the Secretary of State for Finance of Haiti; one member
to be nominated by the Secretary of State of the United States, and
the third member who shall not be a citizen either of Haiti or of
the United States to be nominated by the Financial Adviser, the
three members so nominated to be appointed by the Government of
Haiti.
In case a vacancy occurs in the office of any member by reason of his
disability or for any other cause, a new member shall be nominated
and appointed in the same manner as was the former incumbent.
Article III
The Claims Commission shall have jurisdiction to examine and pass
upon all pecuniary claims against Haiti. It is understood, however,
that the Commission shall not have jurisdiction to consider or pass
upon:
- (1)
- The indebtedness represented by the three bond issues of
1875, 1896 and 1910, now outstanding;
- (2)
- That to the Banque Nationale de la République d’Haïti, as
of December 31, 1916, as acknowledged by the Haitian
Government on the 12th of April, 1919;45
- (3)
- The sum due as interest as this sum will have been
verified and admitted by the Financial Adviser, upon the
bonds of the Compagnie Nationale des Chemins de Fer d’Haïti,
duly authorized and bearing the guarantee of the Haitian
Government, to the amount of $3,544,548.74; and
- (4)
- So much of the sum due to the Compagnie des Chemins de Fer
de la Plaine du Cul-de-Sac on account of the interest
guarantee upon its bonds as has not hitherto been in dispute
between the railroad and the Haitian Government, the
Government having recognized its obligation to pay to the
Compagnie des Chemins de Fer de la Plaine du Col-de-Sac [sic] a sum equal to $41,280 per
annum, less the net profits of the railroad.
It is further understood that the claims heretofore presented to the
Claims Commission appointed by the decree of November four [Page 349] nineteen sixteen need not
be presented de novo to the new Claims
Commission who will review the findings of the Commission appointed
by the decree of November four nineteen sixteen in respect of these
claims, may require the production of further evidence where they
deem this necessary and shall make such final awards as seem to them
just and equitable.
Article IV
The Claims Commission shall proceed, as soon as constituted, to hold
meetings at Port-au-Prince, or elsewhere in the Republic of Haiti,
to formulate rules of procedure for the filing and adjudication of
claims.
The Claims Commission may fix the date after which claims may not be
filed, but such date shall not be less than six months after the
date of the first public announcement by the Commission of its
readiness to receive claims. The Commission shall be bound to
examine and decide upon every claim within two years from the day of
its first meeting. A majority vote of the Commissioners shall
constitute a binding decision upon any claim.
Article V
The Claims Commission shall determine the proportion of each award
which is to be paid in cash and the proportion to be paid in bonds
of Haiti; and it shall state these amounts respectively in its
certificate of award which is to be issued to each creditor in whose
favor an award is made, and which is to be surrendered by him to the
Secretary of State for Finance upon payment of the award.
Article VI
In order to make possible the settlement of the awards rendered by
the Claims Commission and the refunding of those obligations
specifically mentioned in Numbers 1, 2, 3 and 4 in Article III
above, and otherwise to establish the finances of Haiti on a firm
and solid basis, the Republic of Haiti agrees to issue, upon the
terms and at a time to be fixed in accord with the Financial
Adviser, but not later than two years after the date of the
signature of this Protocol a national loan of 40,000,000 dollars
gold ($40,000,000), payable in thirty years by annual drawings at
par, or by purchase below par in the open market. It is agreed that
the Government of Haiti shall have the right to pay off the entire
loan at any time upon reasonable previous notice after fifteen years
from the date of issue.
[Page 350]
Article VII
It is further agreed that this loan, to the issuance of which the
President of the United States consents, will be used to pay or
otherwise provide for the obligations specifically mentioned and
numbered 1, 2, 3 and 4 in Article III hereof, and also the awards
rendered by the Claims Commission provided for herein. Provision
shall be made for the exchange of the bonds of this loan for the
bonds of the issues of 1875, 1896 and 1910, such exchange to take
place with due regard for the interest rates of the respective bonds
and to be carried on between the Secretary of State for Finance of
the Republic of Haiti, in accord with the Financial Adviser, and
such agency as may represent the holders of said bonds. After two
years from the date of the official announcement of the beginning of
the conversion the bonds of this loan not used for the purpose of
conversion shall be returned to the Secretary of State for Finance
of Haiti at Port-au-Prince for the use of the Government. The
holders of any said old bonds which shall not have been presented
for exchange within this period of two years shall apply for
redemption of the same directly to the Secretary of State for
Finance of Haiti. Any surplus remaining after the foreign and
domestic indebtedness has been paid or otherwise provided for shall
be applied by the Republic of Haiti, in accord with the Financial
Adviser, to the construction of necessary public works or to the
service of the loan hereinabove authorized.
Article VIII
It is agreed that the payment of interest and the amortization of
this loan will constitute a first charge upon all the internal
revenues of Haiti, and a second charge upon the customs revenues of
Haiti next in order, until the expiration of the Treaty of September
16, 1915, after payment of salaries, allowances and expenses of the
General Receiver and the Financial Adviser and their assistants; and
it is further agreed that the control by an officer or officers duly
appointed by the President of Haiti, upon nomination by the
President of the United States, of the collection and allocation of
the hypothecated revenues, will be provided for during the life of
the loan after the expiration of the aforesaid Treaty so as to make
certain that adequate provision be made for the amortization and
interest of the loan.
Article IX
Each member of the Claims Commission will receive $8,000 gold per
annum as salary, and $2,000 gold per annum as expenses; and the
Commission is authorized, after approval of the Secretary of State
for Finance in accord with the Financial Adviser, to retain the
services of such assistants and experts and otherwise to incur such
[Page 351] actual and necessary
expenses as may be required for the proper discharge of its duties;
and it is agreed that upon proper certification by the Secretary of
State for Finance, such salaries, allowances and expenses thus
authorized will be paid from the General Treasury of the
Republic.
Article X
The Government of Haiti agrees to empower the Commission by
appropriate legislation or otherwise to compel the attendance at its
sessions in Haiti of witnesses whose testimony is desired in
connection with any claim pending before the Commission, and to
require the production of papers which the Commission may deem
necessary for it to consider. The Government of Haiti further agrees
to enact such legislation as may be necessary to give effect to the
provisions of this Protocol.
Article XI
This Protocol will take effect immediately upon signature by the
Minister of the United States to Haiti representing the Government
of the United States, and by the Secretary of State for Foreign
Affairs of Haiti representing the Government of Haiti.
In witness whereof this agreement has been signed and sealed by Mr.
Arthur Bailly-Blanchard, Envoy Extraordinary and Minister
Plenipotentiary of the United States of America on behalf of the
United States, and by Mr. Constantin Benoit, Secretary of State for
Foreign Affairs of Haiti on behalf of the Républic of Haiti.
Done in duplicate in the English and French languages at the City of
Port-au-Prince on the third day of October, one thousand nine
hundred and nineteen
[
seal]
A.
Bailly-Blanchard
[
seal]
C.
Benoit
