838.51/1479a: Telegram

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

127. For General Russell. National City Bank informs Department that Haitian Minister in Paris is cabling Government requesting authorization to deposit approximately 27,000,000 francs with the fiscal agent of the 1896 loan for redemption of that loan. National City Bank suggests that such deposit should be made in form of special trust fund for benefit of the 1896 bondholders and for them alone, to prevent possible attachment by 1910 bondholders. Department suggests that Haitian Minister be instructed to confer with Paris counsel for National City Bank regarding form in which deposit should be made.

National City Bank also states that Haitian Minister in Paris consulted fiscal agent of 1910 loan regarding publication of notice and that fiscal agent objected to publication, referring to their letter of November 22 to Haitian Government demanding payment in gold.32 You should forward copy of this letter to the Department immediately and keep it fully advised regarding all developments in this matter. National City Bank suggests that Haitian Minister in Paris should be instructed to publish notice regarding redemption of 1910 bonds without regard to fiscal agent’s protest. Department commends this suggestion to your consideration, since there appears to be nothing to prevent in 1910 loan contract, and since such action appears necessary to assert right of Haitian Government to pay bonds in francs.

  1. Not found in Department files.