838.51/1189 supp.
The Secretary of State to the High Commissioner in Haiti (Russell)
Sir: Your attention is called to that portion of the Department’s instruction of February 2, 1922, to Mr. Jordan,63 which refers to the [Page 515] efforts which should be made by the General Receiver of Customs to persuade the bondholders of the National Railroad to accept payment of the interest on the bonds in francs and not to exercise their right to elect to receive payment in dollars.
In view of the imminent flotation of the foreign loan the Department feels that any efforts which may have been made to carry out this instruction should now be discontinued. The protocol clearly provides that the interest on the National Railroad bonds should be paid from the proceeds of the loan and the bondholders would appear to have an unquestionable right to demand such payments in full in dollars. Consequently, you are requested to inform the General Receiver of Customs that the Department does not desire him to take any further steps toward a compromise with the holders of the railroad bonds. The Department understands that the General Receiver’s recent letter to Mr. Farnham,64 which was sent by Mr. Maumus to Mr. McIlhenny, has not been forwarded.
I am [etc.]