838.516/140: Telegram
The Secretary of State to the Minister in Haiti (Bailly-Blanchard)
59. Your July 28, 5 p.m., and July 29, 5 p.m.67
For McIlhenny. Department’s approval of proposal of National City Bank to purchase National Haitian Bank, taking over contract as it stands, was due to the approaching expiration of option. Department does not regard such approval as in any way weakening American policy in Haiti, and does not consider that it can now recede from approval of purchase. Such approval in no way implies that Department is less insistent that modifications already agreed upon be accepted by Haitian Government before transfer of contract to new Bank.
Haitian Chargé d’Affaires, by instruction of his Government, has protested to the Department against your action in delaying consideration of budget, due to your refusal to resume discussions until Haitian Government agreed to modifications of bank charter. Haitian Government likewise stated that British, French and Italian Legations as well as American companies in Haiti, have protested against prohibition of importation of foreign currency. Haitian Government requests special investigation by Department.68
Department has replied that before reaching any decision as to necessity of investigation, it requires full information from Haitian Government as to the reasons for its change of attitude regarding modifications of bank charter and its refusal to put into effect Article 15 of the contract of the Retrait; for its refusal to enact [Page 826] Land Law, and for its approval of legislation reported by you as unsound and improper. Department has further stated that it believed action taken by you was in the best interests of the Haitian people.69
Department desires that you keep it far more fully informed than heretofore of all developments in the situation. You are assured of Department’s entire support in making effective a policy which will promote the welfare of the people of Haiti.