839.6463/89: Telegram
The Secretary of State to the Minister in the Dominican Republic (Russell)
7. Your No. 2, January 26, noon.
. . . . . . . . . . . . . .
Department understands that under Law of Waters National Government has full authority to purchase plant which Company is apparently in position to transfer free and clear of all liens except those set up by actions of cities, Santiago, Puerto Plata. These liens Dominican Government could presumably arrange for absorbing in any final disposition of matter it might make with cities.
While Company is not desirous of continuing further negotiations with Dominican authorities and takes position matter should now assume importance of international claim, Department considers that another effort should be made for amicable settlement and is of opinion that Dominican Administration just entering into power in country could signalize such entrance in no way better calculated to do justice and win confidence of foreign governments and investors than by making such settlement.
There seems to be no dispute over fact that Company has invested over $900,000 in its properties…
Having in mind agreement Company made two years ago with cities for purchase of plant by latter for $400,000 and after carefully [Page 919] considering all circumstances in case, Department is of opinion that it would be entirely appropriate and just for Dominican Government to submit an offer of amount last mentioned in face value its bonds plus interest at 6 percent for two years for all the properties of the Company including hydro-electric site which was not included in agreement referred to. If offer accepted Dominican Government would then be acquiring property worth much more than amount paid, would bring about friendly settlement this long standing case and would evidence its good will and sense of justice.
Should such an offer be made, Department would use its influence with Company to induce it to accept and furthermore would endeavor to influence Company to render advice and assistance if requested to place plant in operating order.
Bring foregoing promptly and emphatically to the attention of appropriate authorities adding that pending outcome of negotiations Dominican Government should take steps to suspend further action in embargo proceedings against property which Department understands have progressed so far that date for sale of property has been set. On the point of what the Dominican Government can and will do to suspend such proceedings, you will request prompt advices stating that your Government attaches great importance to this point.