The Secretary of the Navy (Daniels) to the Secretary of State
Sir: Referring to previous correspondence in connection with a change in the revenue laws of the Dominican Republic proposed by the Military Governor of Santo Domingo, I have to inform you that your letter of January 11, 1919 (LA 639.002/48)47 has been referred to the Military Governor for the additional information requested therein. The following telegram has been received from the Governor dated February 5, 1919:
“Present custom collections averaging over four million per annum. Under present alcohol and stamp laws, custom surcharges amounting to about two hundred thousand dollars per year are collected as internal revenue and applied direct to current expenses. New law merely provided for economic and simple method of collection of equal amount by custom collectors. If new law is approved and payment permitted of total for current expenses as per executive order, collections under convention will not be affected. If law is approved and funds collected are treated as other custom collections, sinking fund will be increased by about one hundred thousand dollars per annum with corresponding loss to Dominican Treasury income.”
It is presumed that more detailed information will be received by mail from the Governor on this subject, and when received it will be forwarded to your Department.