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

Sir: I have the honor to quote the following dispatch which has been received from the Military Governor of San Domingo:—

“State Department’s cable to American Minister, Santo Domingo, dated January 15th referring to my 12028 December regarding Dominican Bonds. Attention is invited to Opnav’s letter 3627818–376 of July 26th24 and copy of State Department’s letter attached thereto.25 State Department’s action considered as conclusive approval of issuance of Executive order26 and bonds as recommended [Page 147] by Military Governor. Executive order provided for payment of interest and amortization from custom collections by receivership and as an additional provision under 1907 treaty for disposition of customs collections. Military Government did and feels it was warranted in placing interpretation set forth in my 12028 December. Good faith and prestige of Military Government at stake. Without the assurance of the continuance of receivership 1918 bonds will have market value which will be twenty to thirty points lower than 1908 loan which will be discredited [to discredit] of Military Government and United States Administration of Dominican affairs. Think publication of State Department letter above referred to will remove doubts from minds of purchasing public in the United States and San Domingo. Provisions for the continuance of receivership could be included in future treaty or convention when Military Government is discontinued. Request authority to publish State Department’s letter. If not granted, recommend immediate steps to be taken to negotiate treaty covering point in question. 11323.”

Sincerely yours,

Josephus Daniels
  1. Not printed.
  2. Letter of July 19, 1918, Foreign Relations, 1918, p. 376.
  3. Executive Order No. 193, ibid., p. 377.