The Secretary of War (Baker) to the Secretary of State
Subject: Collection of Internal Revenue in Santo Domingo.
Sir: I beg to acknowledge your letter of October 23rd in which you say on this subject that your Department is of the opinion that it is no longer necessary for the Receivership to control the collection and disbursement of the internal revenue funds and desires to suggest that the Receivership be instructed to withdraw from such control.
This letter has been transmitted to the Bureau of Insular Affairs, and the instructions suggested by you have today been issued by cable, as shown in the inclosure. For convenient reference, I also inclose copy of the instructions dated June 15, 1916.45
For a number of years prior to the establishment of the Military Government in Santo Domingo it was felt by the Department of State and the Receivership that it would materially assist the government of the Republic in the maintenance of law and order and a stable government if the collection of these funds and their disbursement under the laws of the Republic were in the hands of the Receivership. When the Military Government is succeeded by a Dominican Government it will again be found of advantage to have this work done by the Receivership. For that reason, the Bureau had hoped that the Receivership would continue the work during the [Page 161] existence of the American Military Government in order that its successor would not feel that an offensive condition was being imposed on it if it should be required that the Receivership take over the collection of the internal revenues. The Bureau of Insular Affairs, however, feels that the authority and responsibility being with the Military Government, the services could be performed by the Receivership satisfactorily only in case of complete accord with the Military Government and with its full approval.