338.6253/4: Telegram

The Secretary of State to the Minister in Haiti (Bailly-Blanchard)

34. Your 39, July 5, 1 P.M.

Telegram is garbled. Department is not at all clear whether interests of American creditors are protected on terms of equality with other creditors, nationals of Haiti and other Allied Powers. It considers rights of American creditors should not be disregarded in connection with disposition of assets of German debtors taken over by public trustees. Your telegram contains no answers to following specific questions in Department’s 31, June 24 [25], “whether Mixed Tribunal has been established by Haiti and Germany to pass on claims for damages to Haitian property in Germany; whether within month after ratification treaty Haiti gave notice of adoption of debt section referred to in paragraph (e), Article 296, and if so, whether Clearing Office for settlement of debts has been established; and whether any Allied or Associated Power has made any arrangement with Haiti pursuant to paragraph (f), Article 296, for adjustment debts of its nationals.”

As stated in Department’s instruction 379, January 25, unless Haiti within one month of ratification of treaty gave notice of adoption of Article 296 debt section could not be adopted.

[Page 239]

As pointed out in that instruction, Department considers use of sequestered property for expenses of internment and repatriation of Germans not warranted by treaty.

Department awaits telegraphic report to clear matters referred to in this telegram before instructing you further.

Hughes