The Secretary of the Navy ( Denby ) to the Secretary of State
Sir: With further reference to the issuance of bonds of the Dominican Republic, there are forwarded herewith for your information a copy of the proposed Executive Order to be issued by the Military Governor of Santo Domingo, and a copy of the proposed bond itself60 to be issued by the Military Government of Santo Domingo.
On the reverse of the bonds issued in June, 1921, appeared an extract from a letter of the State Department dated June 1, 1921,61 giving its assent to the increase in the public debt of the Dominican Republic, as required by the 1907 Convention, and indicating the consent of the State Department to the inclusion in an Executive Order of the Military Governor of Santo Domingo of a statement regarding the validation and acceptance by any succeeding Government of Santo Domingo of the acts of the Military Government and the extension of the duties of the General Receiver of Dominican Customs to cover the service of that bond issue. It appears necessary, in order to effect the sale of the present issue of Dominican bonds, to furnish some similar definite statement although not in the form of extracts or quotations. I therefore wish to furnish Messrs. Lee, Higginson & Co., for their files, a copy of your letter of March 25, 1922, LA 839.51/2274, concerning the Dominican loan, with the understanding that the letter is not to be published in any circular or statement issued.
It is proposed to print on the reverse of the bonds, statements substantially as follows, which will not appear as extracts or quotations [Page 85] although they do not deviate from the language contained in your letter of March 25, 1922, above referred to:—
The Department of State of the United States has consented to the issuance by the Dominican Government of a total bond issue of $10,000,000, of which $6,700,000 are to be issued at once, and of which the remainder will be issued only after previous agreement between the two Governments.
The Government of the United States, through the State Department, has consented that the General Receiver of Dominican Customs, appointed under the Convention of 1907, shall, during the life of that Convention, make such payments as are necessary for the service of the new loan from the revenues accruing to the Dominican Government, and has further consented to the giving of assurances by the Military Government of Santo Domingo acting on behalf of the Dominican Republic—
- That the Bond issue now made will be accepted and validated by any subsequent government of the Dominican Republic;
- That after the expiration of the Convention of 1907, any subsequent government of the Dominican Republic will agree that the customs revenues pledged for the service of the loan shall be collected and applied by an official appointed by the President of the United States in the same manner as the present General Receiver of Customs;
- That after the expiration of the Convention of 1907, the loan now authorized shall have a first lien upon such customs revenues, after the payment of the necessary expenses of collection, until all the bonds thereof are paid in full.
Will you kindly let me know whether or not you have any objection to this procedure.