838.51/1164: Telegram

The Secretary of State to the Chargé in Haiti (Jordan)

61. Your 76, November 10, 11 a.m., Department’s 60, November 14, 6 p.m.

Department had already considered with great care point 1 raised by Haitian Government based upon the period of time mentioned in Article VI of the Protocol and had come to the definite conclusion that the non-performance of the undertaking of the Haitian Government with reference to the issuance of bonds within the time mentioned did not relieve it of its obligation, in the premises, at the option of the other party to the Protocol. The bankers also were willing to waive the point raised by the Haitian Government requiring only that the point be covered by reference in the legislative act giving effect to Article VIII of the Protocol.

It is possible that point 2 raised by Haitian Government is due to a misunderstanding. The pledge of both the customs and internal revenues required by all the bankers so far approached and provided in the Protocol during the life of the bonds is not an affectation of specific revenues in the sense of former Haitian legislation, but merely a provision creating a first charge upon them so that only such portion[s] of them as may be required by the public debt service are to be set aside. There would be no objection to incorporating in the law above mentioned carrying out Article VIII of the Protocol a provision that the officer or officers appointed by the President of Haiti upon nomination by the President of the United States shall allocate to the debt service first the necessary portion of the customs revenues and then, in case the customs revenues should prove insufficient, the necessary amount from the internal revenues; even with a gradual removal of the export taxes it is possible that for a time the customs revenues might prove to be insufficient.

With regard to point 3 raised by the Haitian Government, the Department can only repeat what was stated in its telegram 57, October 18, 1 p.m., namely, that in its considered opinion the Protocol would not require modification because of the amount of any loan that may be issued if that amount is within the maximum fixed by the Protocol. In case, however, the Haitian Government wishes to insist upon this point the Department is of opinion that the point could be covered by a provision in the proposed law twice mentioned above to the effect that the right is reserved to issue the balance of the loan if it should be deemed necessary at a later day.

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You will seek a further audience with the President in the company of the Receiver General urging as a reason the desirability of an early decision on the loan matter and you will present the above considerations to him in the form of an informal memorandum based upon your outline of the Haitian memorandum received by you November 10th,39 promising at the same time a fuller reply to the Haitian memorandum in case it is found necessary upon its receipt and in case the President of Haiti does not prior to that time decide in favor of authorizing the Financial Adviser to enter into immediate definite loan negotiations.

  1. Summarized in the Chargé’s telegram no. 76, Nov. 10, p. 217.