The High Commissioner in Haiti ( Russell ) to the Secretary of State
[Received April 21—10:25 a.m.]
59. Department’s 44, April 11, 3 p.m. Based on customs collections for first six months of current fiscal year the revenues will exceed previous annual revenues heretofore collected by $500,000.
By the time the increased revenues for the service of the $3,000,000 series B bonds begin to be needed the pending revision of the custom imports will have resulted in a substantial increased allowance in the collection of such duties.
The guaranty for the service of the additional $3,000,000 will be acceptable especially as (a) the total sum for service will not be required at the end of three years and perhaps not at all; (b) any service whatever on the bonds will not begin for at least one and one-half years; (c) there will be ample time during this period of one and one-half years to establish an internal revenue tax of sufficient productivity to supply the service of the initial part of the loan; (d) by the time the total loan is floated, as in three years, the returns from the internal taxes will be ample to cover the service of the entire $3,000,000 additional B bonds and certainly of the two or two and a half millions which in all probability is all that will be needed.
A communication from President Borno just received authorizes the expenditure by the Financial Adviser of a sum not to exceed $30,000 from the reserve funds of the General Receiver for the preparation and other useful purposes connected with the installation of the internal revenue law and further states that said sum will be reimbursed from the first collections made under operation of the internal revenue law or from the general funds. Adviser is now undertaking immediate preparation of law to be enacted by the Council of State during this session. President Borno has informed me that the Council of State was favorable to such a law. The Haitian Government will be advised that no additional series B bonds will be floated pending the enactment of a Haitian internal revenue law monetary satisfactory productivity [satisfactorily productive monetarily?].[Page 407]
In view of the above urgently recommend reconsideration of my number 52  April 6, 1 p.m. and that the Department authorizes increase of issue.
Inability of Claims Commission to apportion its awards until decision is given makes this question most urgent. Financial Adviser strongly recommends that this program be followed.