838.51/1566: Telegram
The High Commissioner in Haiti (Russell) to the Secretary of State
[Received June 29—10:12 a.m.]
88. It is my opinion that before presentation of the internal revenue law to the Haitian Government American control of all internal revenues should be assured during the life of the treaty by an agreement between the two Governments.
In my instructions from the Department dated November [February] 11th, 1922,2 page 5, the consolidation of the offices of Financial Adviser and General Receiver is suggested. Recently President Borno suggested to me such amalgamation. In my opinion the time is now ripe for taking such action and in the proposed agreement I have embodied that idea. I have furthermore developed a [Page 387] chain of authority that will cover all financial activities and [will] not extend the objects and aims of the treaty and protocol.
It is my belief that this is of the gravest importance to the future welfare of Haiti and that this is the moment to finally readjust and reorganize it, putting financial control on a firm basis, with a reduction of salaries.
After careful consideration I have to submit the following draft of a proposed agreement:
“In pursuance of the objects of the treaty concluded September 16th, 1915, between the United States of America and the Republic of Haiti,3 the Government of the United States and the Government of Haiti, through duly authorized representatives, agree upon this accord for the purpose of carrying out more fully the objects of the aforesaid treaty and the protocol of October 3rd, 1919.4 It is clearly understood that this agreement does not in fact or by implication extend the provisions of the treaty herein before mentioned.
Article 1. The functions and offices of Financial Adviser and General Receiver of Customs as set forth in article 2 of the treaty of September 16, 1915, are hereby consolidated. The official to occupy this office shall, upon nomination by the President of the United States, be appointed by the President of Haiti and be designated ‘the Financial Adviser and General Receiver of the Republic of Haiti’.
Article 2. The following aids and assistants to the Financial Adviser and General Receiver shall be nominated by the President of the United States and be appointed by the President of Haiti. Such aids and assistants shall include: (1) the Auditor, (2) the Collector of Internal Revenue, (3) the Collector of Customs, (4) the Chief Deputy Collector of Internal Revenue. They will take precedence in the order named.
Article 3. The duties of the aids and assistants enumerated in article 2 of this agreement shall include the following:
The Auditor: To be chief of the Division of Audit and, under the supervision of the Financial Adviser and General Receiver, to devise and put into effect an adequate system of audit of all revenues and expenditures. The rulings of the auditor on matters of audit shall not be subject to revision by the Financial Adviser and General Receiver of the Republic of Haiti.
The Collector of Internal Revenue: To be chief of the Division of Internal Revenue and to be charged with the direction, supervision and control of said division as well as the administrative interpretation of the internal revenue law of 1923. To have the authority to impose and collect administrative fines and declare and enforce the necessary regulations for the administration of the law. Under the direction of the Financial Adviser and General Receiver he shall supervise and control all collections of internal revenue during the life of the treaty of September 16th, 1915.
The Collector of Customs: To be chief of the Division of Customs and to be charged with the collection and deposit in the national [Page 388] treasury of all customs duties on imports and exports accruing at the several customhouses and ports of entry of the Republic of Haiti.
The Chief Deputy Collector of Internal Revenue: To be assistant chief of the Division of Internal Revenue and to perform such duties as may be assigned to him by the chief of the division and contained in the laws and regulations pertaining to the internal revenue division.
Article 4. The expenses of the receivership, including the salaries and allowances of the Financial Adviser and General Receiver, the salaries and allowances of the officials named in article 2 of this agreement, the expenses incident to the auditing of accounts, the disbursing of funds, the collection of the internal revenue and the collection of customs duties, shall not exceed the total of 5 percent of the collections and receipts from the custom duties plus 10 percent of the collections and receipts from the internal revenues, unless by agreement by the two Governments.
Article 5. The salaries and allowances of the Financial Adviser and General Receiver shall be as follows: salary $6,000 per annum, allowances $4,000 per annum; all in United States currency.
The Auditor, the Collector of Internal Revenue and the Collector of Customs Duties shall each receive an annual compensation in United States currency of; salary $4,000, allowances $2,000.
The Chief Deputy Collector of Internal Revenue shall receive an annual compensation in United States currency of: salary $3,000, allowances $1,000.
Article 6. All internal revenues, customs duties on imports and exports accruing at the several customhouses and ports of entry of the Republic of Haiti, fines, seizures and forfeitures collected, shall be deposited as, and when collected, in the Banque Nationale de la République d’Haiti to the credit of the General Receiver.
Article 7. The aids, under-assistants and employees not designated in article 2 of this agreement shall be appointed by the chief of the respective divisions.”
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