838.51/1584: Telegram

The Acting Secretary of State to the Chargé in Haiti ( Dunn )

107. General Russell has discussed with the Department President Borno’s views regarding the proposed agreement for the reorganization of officials connected with Haitian finances and it has given careful consideration to the suggestion that the internal revenue system should be established by law rather than by an agreement. The Department feels that an agreement between the two Governments is necessary for the proper establishment of the internal revenue system because the adoption of a law which could be altered at any time by the Haitian legislature would not afford sufficient [Page 392] assurance of stability in the system to be established. An agreement appears to be necessary to define the position of the American officials to be appointed in connection with the internal revenue system. The Department therefore hopes that President Borno may reconsider his objections to the proposed agreement and that the discussion of the agreement may be expedited so that it can be signed before the next meeting of the Council of State.

In view of President Borno’s objection to the establishment of the position of Auditor, the Department is willing that the portion of the proposed agreement relating to this official should be struck out.