838.51/956: Telegram
The Minister in Haiti ( Bailly-Blanchard ) to the Secretary of State
[Received September 7(?)—2:30 p.m.]
61. From McIlhenny:
Department’s 68, August 21, 5 p.m. My 56, August 5 [27], 5 p.m. Haitian Government has notified me of its approval of my suggestion that interest and amortization now due on foreign debt be paid, and for this purpose it proposes to transfer to me $2,200,000. It has, however, formally notified me that it proposes at the same time that it pay[s] the interest and amortization on the foreign debt to take up the payment of the interest and capitalize the interior debt, also that it is their desire and purpose to abrogate the protocol between the American and the Haitian Governments signed October 3rd, 1919, the principal reason being that the need for the loan owing to the increased income of Haiti no longer exists, that the advantage to be gained [by] the low value of the French franc has been largely eliminated and for the further reason that the present loans are for a long term and on a 5 and 6 per cent basis whereas they believe it will be necessary to float the new loan on a 7 or more per cent basis.
I am replying at once to this proposal urging them that no such action be taken and respectfully suggest that the Department take a definite and adverse stand in opposition thereto.