The Secretary of State to the Minister in the Dominican Republic (Russell)
Sir: Under date of July 20, 1922, the Navy Department transmitted to this Department a proposal from the Ayuntamiento of Santiago, Dominican Republic, for the purchase of the plant of the Santo Domingo Water, Light, and Power Company.67 This proposal was transmitted to Mr. Hunt, Counsel for the Company, and a reply has now been received from Mr. Hunt containing the conditional acceptance of the proposed contract.
Mr. Hunt has informed the Department that his clients were unable, because of the nature of their relations with the mortgage creditors of the Company, to assume an indefinite obligation to put the plant at Santiago in the same condition as on the date when it was closed down. The Company is, however, willing, as you will note from the conditional acceptance of the contract, to reduce the price of the property from $400,000 to $380,000 and to advance to the Ayuntamiento $15,000 additional in cash, in order that the Ayuntamiento may itself put the properties in good operative condition. Mr. Hunt states that this sum seems amply sufficient for that purpose, in view of reports rendered to the Company by technical experts.
You are requested to urge the acceptance of the Company’s proposal upon the Military Governor, expressing the interest of the Department in the settlement of this matter upon what appears to be an equitable basis. You will call the Military Governor’s attention to the fact that the proposal of the Ayuntamiento was not received by the Department of State until July 21, 1922, although it was approved by the Military Governor on June 29, 1922.
I am [etc.]
- Proposed contract not printed.↩