838.51/1432a: Telegram
The Secretary of State to the Chargé in Haiti (Dunn)
105. For General Russell. In view of the ratification of the loan contract Department assumes and desires that items mentioned in Article III of protocol will be paid immediately. The General Receiver should then set aside for service of public debt after payment of collection expenses, etc., following items: Service of bonds of Series A and of such bonds of Series B as may have been issued; service of notes of the Compagnie Haitienne de Construction; and amount now being segregated for services of internal loans and Bons Fouchard. Last named amount should be held pending refunding of internal bonds and decision regarding payment of Bons Fouchard. [Page 518] Department regards railroad subventions, French Cable subsidy and similar payments as not constituting payments upon public debt and they should, therefore, be made in future out of funds available for Haitian Government expenses.
Pending enactment of internal revenue legislation, Department would approve use of small portion of proceeds of foreign loan for payment of interest and amortization, if absolutely necessary and only as a temporary measure.
Communicate above to General Receiver and Financial Adviser. Mail instruction follows.