838.51/1440
The Haitian Secretary of State for Foreign
Affairs (Dejean), on Special Mission in
the United States, to the Secretary of
State
[Translation]
New
York, November 18,
1922.
Mr. Secretary of State: Immediately upon
receiving the telegram Your Excellency was so kind as to send me on
November 18th[16], I communicated both to the
National City Company and its counsel the opinion of the Secretary of
State for Justice of the Republic of Haiti as to the right of the
Haitian Government to redeem in francs at the rate on the day of
redemption, and not in gold, the bonds of the 1910 loan.
I have the honor to forward herewith to Your Excellency a copy of the
letter from Messrs. Shearman and Sterling, dated November 17th, and of
that which I sent to the National City Company to-day.
[Page 519]
I find myself constrained under my Government’s instruction to beg Your
Excellency kindly to lend me Your high assistance toward an early and
satisfactory settlement of this important question.
I gladly take [etc.]
[Enclosure 1]
Messrs. Shearman &
Sterling to the Haitian Secretary of State for
Foreign Affairs (Dejean)
New
York, November 17,
1922.
Sir: We are pleased to acknowledge receipt
of your favor of today’s date, enclosing a copy of the telegram of
the Secretary of State of the United States of America, transmitting
the opinion of the Secretary of State for Justice of the Republic of
Haiti.
We regret that, pending a satisfactory determination of the question
which has been raised respecting the payment of the 1910 External
Gold Loan, and upon which we feel depends, to some degree, the
ability of the Republic of Haiti to discharge the existing liens on
its revenues in accordance with the provisions of Article X of the
Contract of October 6, 1922, we are not now in position to give our
definitive approval of the new Loan. For reasons which we have
explained to you, we consider that the question should be laid
before our Department of State, and that the attitude adopted by the
Department must, in great measure, influence our ultimate
conclusion. We beg to assure you, however, that we shall expedite
the final determination of the question with all diligence.
With renewed assurance [etc.]
[Enclosure 2—Translation68]
The Haitian Secretary of State for Foreign
Affairs (Dejean) to the National City Company
New
York, November 18,
1922.
Gentlemen: Referring to my letter of this
date enclosing a copy of a telegram from the Secretary of State of
the United States of America and of my letter to Messrs. Shearman
and Sterling, I have the honor to forward herewith to you a copy of
your counsel’s communication dated November 17, 1922.
Once more, practically on the eve of the expiration of the time set
for the payment of the loan under the contract, another difficulty
has arisen which was entirely unexpected by the Haitian
Government.
[Page 520]
I cannot really understand, as I have had the honor to say both to
your counsel and to Mr. Mitchell, president of the National City
Bank, how the National City Company, which tendered offers for the
loan and signed the contract of October 6, 1922, on the strength of
the official documents, and in particular the treaty of September
16, 1915, the protocol of October 3, 1919, and the law of June 26,
1922, which it had doubtless previously examined, should only at
this time demand of the Department of State a declaration that it
has already more than once given as the Financial Adviser
recommended to the Haitian Government that it take advantage of the
current rate of exchange of the franc to redeem the French debt [sic], a suggestion he recently renewed after
the signature of the contract of October 6, 1922, when he formally
approved the said contract and its purposes.
The demand is all the less comprehensible as at this moment anyone
may buy on the Paris exchange at the rate of the day, Haitian bonds
of 1910 below par.
It is not for the Haitian Government to settle this question, in
connection with which it wishes to decline all responsibility.
I note, however, that your counsel in company with an officer of the
Bank will confer next Tuesday with the Department of State in order
to ascertain its opinion on the subject.
I shall advise my Government to that effect.
Be pleased [etc.]
