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

No. 458

Sir: Upon the receipt of your telegram of May 9, 5 p.m., the contents of the telegram were communicated informally to the representative of the San Domingo Water, Light & Power Co. After considering the information conveyed by you, the Company has addressed to the Department a letter embodying a plan of settlement which the Company is willing to accept. A signed copy of the Company’s letter, in the form of a definitive offer, is transmitted herewith.63

The Department desires that you should communicate this offer to the Military Government of Santo Domingo, recommending it to the Military Governor’s consideration, but stating that the Department does not at this time commit itself upon the question whether it will be proper for the Military Government to guarantee the bonds [Page 92] of the proposed municipal issue. In connection with this point, you are instructed to transmit by cable your comments, with those of the Military Governor, upon the Company’s contention, as expressed by officers of the Company to officials of this Department, that the provisions of the Company’s concession and of the Law of Waters, under which the concession was granted, offer justification for the guaranteeing by the Military Government of bonds issued for the purpose of purchasing the Company’s property. It is believed that the formal agreement of the United States Government will be necessary under Article III of the Treaty of 1907,65 before the Military Government will be authorized to guarantee the proposed municipal bonds. If the Military Government and the Municipalities of Santiago and Puerto Plata approve of the settlement proposed by the Company, the Department will be glad to consider the advisability of giving its agreement to the guarantee of the proposed bond issue by the Military Government.

I am [etc.]

For the Secretary of State:
William Phillips
  1. Not printed.
  2. For text of treaty, see Foreign Relations, 1907, pt. 1, p. 307.