839.6463/51: Telegram

The Minister in the Dominican Republic ( Russell ) to the Secretary of State

21. Referring to your cablegram 7 bis [8] May 2, 5 p.m.63 Military Government was informed yesterday that the City Council of Santiago was willing to make definite offer for purchase plant of $400,000 bonds at 6 percent, company to purchase $50,000 additional bonds at market value and to operate plant for one month to insure that everything was in good condition, said operation to be borne by City Council. Military Government informed City Council that it was doubtful if Company would accept such a proposition and Secretary of Council and one member thereof stated that they would endeavor to persuade City Council to offer 7½ percent interest. Here the matter rests waiting for definite offer from Council. City Council does not admit validity of agreement between its representative and utility company. Military Government is willing to segregate funds and place them at the disposition of fiscal agent utility company upon the completion of contract.

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