338.6253/2
The Acting Secretary of State to the Minister in Haiti (Bailly-Blanchard)
Sir: The Department has received your despatch, No. 402, of August 7, 1920, enclosing a copy of the project of law for the organization in Haiti of the “Office of Compensation”, provided for by Section 3, Part 10, of the Treaty of Peace signed at Versailles on the 28th of June, 1919, which was submitted to the Legation by the Haitian Government in accordance with the agreement of August 24, 1918, and which was returned to the Foreign Office with the approval of the Legation.
You also enclosed copies of two new articles added to the project and passed by the Council of State, and copies of the correspondence between the Legation and the Foreign Office, and you ask for the instructions of the Department in the premises.
Examination of these articles in connection with the Treaty of Peace seems to indicate that they fail to accord with that Treaty in the provision of Article 14 of the proposed law that the expenditures of the Haitian Government in connection with the internment of its former enemies shall be repaid from the property of enemies. The rights of Haiti with respect to charges against such property would seem to be limited by paragraph 4 of the annex to Part X [Page 235] of the Peace Treaty which does not provide for any charge on account of the expenses of internment.
Furthermore, by the proposed law, Haiti is apparently purposing to adopt the debt section under the optional provisions in the Peace Treaty and yet return property not needed to pay Haitian claims. In view of the following provisions of Articles 297 (h) (I) of the Treaty she would appear to be without authority to make such an arrangement:
“As regards Powers adopting Section III and the Annex thereto, the said proceeds and cash assets shall be credited to the Power of which the owner is a national, through the Clearing Office established thereunder; any credit balance in favour of Germany resulting therefrom shall be dealt with as provided in Article 243.”
Article 243 reads as follows:
“The following shall be reckoned as credits to Germany in respect of her reparation obligations:
- (a)
- Any final balance in favour of Germany under Section V (Alsace-Lorraine) of Part III (Political Clauses for Europe) and Sections III and IV of Part X (Economic Clauses) of the present Treaty;
- (b)
- Amounts due to Germany in respect of transfers under Section IV (Saar Basin) of Part III (Political Clauses for Europe), Part IX (Financial Clauses), and Part XII (Ports, Waterways and Railways);
- (c)
- Amounts which in the judgment of the Reparation Commission should be credited to Germany on account of any other transfers under the present Treaty of property, rights, concessions or other interests.
In no case, however, shall credit be given for property restored in accordance with Article 238 of the present Part.”
It is not stated by you in your despatch whether the Haitian Government gave the notice contemplated in the following provision of Article 296 (e), but if such notice was not given the debt section of the Treaty could not be adopted.
[“] (e) The provisions of this Article and of the Annex hereto shall not apply as between Germany on the one hand and any one of the Allied or [and] Associated Powers, their colonies or protectorates, or any one of the British Dominions or India on the other hand, unless within a period of one month from the deposit of the ratification of the present Treaty by the Power in question, or of the ratification on behalf of such Dominion or of India, notice to that effect is given to Germany by the Government of such Allied or Associated Power or of such Dominion or of India as the case may be.”
If the proposed law were to be promulgated as it stands it appears to the Department, as stated above, that it would conflict with the [Page 236] Treaty of Peace. The Department cannot, therefore, approve of the proposed law of the Haitian Government if the two additional Articles 14 and 15 are included.
I am [etc.]