The Acting Secretary of State to the Secretary of War (Baker)44

Sir: In view of the fact that the Military Government of the Dominican Republic is a responsible Government and is faithfully carrying out its obligations as a successor of the Constitutional Dominican Government, this Department is of the opinion that it is no longer necessary for the Receivership to control the collection and [Page 160] disbursement of the internal revenue funds and desires to suggest that the Receiver be instructed to withdraw from such control.

The Department considers that the effect of the proclamation of Military Government of November 29, 1916 was to place the control of the internal revenue funds in the Military Government according to the following clause.

“All revenue accruing to the Dominican Government, including revenues hitherto accrued and unpaid,—whether from customs duties under the terms of the Treaty concluded on February 8, 1907, the Receivership established by which remains in effect, or from internal revenue, shall be paid to the military government herein established which will, in trust for the Republic of Santo Domingo, hold such revenue and will make all the proper legal disbursements therefrom necessary for the administration of the (recognized?) Dominican Government and for the purposes of the occupation.” (839.00/1952)

I have [etc.]

William Phillips
  1. Copy of letter transmitted the same date to the Secretary of the Navy.