838.51/990: Telegram
The Minister in Haiti (Bailly-Blanchard) to the Secretary of State
[Received October 10—9:25 a.m.]
72. Department’s 75, September 13, 7 p.m. and 85, October 4, 5 p.m.97 From McIlhenny:
[Page 846]The Haitian Government in reply to my letters of September 24, and October 7, requesting that the authorization of October 8, 1919 and January 13, 1920, to float an external loan, withdrawn on September 1, 1920, be renewed and that I be permitted to issue $15,000,000 of 8 per cent 5 year notes has offered to grant me authority to float a loan but with the following conditions.
That statement and term notes be issued for only $8,000,000; that only such part of the 30 years 6 per cent bonds be issued as is necessary for collateral for the short term notes and that I will accept the Haitian Government’s claim that there is no distinction to be drawn between the internal and the external debts of Haiti; that the internal debts of the country are not subject to the provisions of the Protocol and for that reason not reviewable by the claims commission and that I further agree to the immediate resumption of the service of these debts. The negotiation [of $] 8,000,000 will be sufficient to redeem the French bonds if francs can be purchased at 14 or better but will not issue sufficient money to pay off certain of the interior debts which must be liquidated in gold such as the note to the Banque National[e] for $1,725,154.87 [$1,733,54.87] due December 31, 1920, with two years interest at 6 per cent, and the deferred interest on the National Railroad bonds amounting now to $1,400,000. My judgment is that short term notes should not be floated for less than fifteen millions but it would be possible though much more undesirable to do with twelve millions. I also think that the 30 years 6 per cent bonds should be issued in a sufficient amount not only to serve as collateral for the short term notes but to refund the internal debts in so far as they will be accepted by the holders of those debts. The conditions established by the Government are however impossible of acceptance in view of the instructions of the Department and for this reason until they are removed it appears to me unnecessary for me to go to Washington. Under these circumstances is it still the desire of the Department that I proceed to Washington? If so, cable instructions.
- Latter not printed.↩