838.51/1480: Telegram

The High Commissioner in Haiti (Russell) to the Secretary of State

168. Department’s 127, December 29, 2 p.m., just received. Urgent cables sent yesterday to National City Bank, New York, its Paris branch, to Société Générale de Crédit Industriel et Commercial, Haitian Legation, Paris, containing instructions for government publication redemption 1910 bonds and transfer of funds for immediate redemption 1896 bonds.

Cable to Haitian Legation directed Haitian representative to immediately get in touch with National City Bank director at Paris and to see that the notice for the redemption of the. 1910 bonds was immediately published specifying that each bond 500 francs would be redeemed for 500 francs plus interest due to date of redemption. Further stated that it was indispensable that publication must be made immediately for according to the contract the Government must give three months’ notice for the redemption of these bonds and that the redemption must take place not later than April 1st, 1923.

Also that instructions had been given to the National City Bank of Haiti acting in the name of the fiscal agent at New York to cable to the branch of the National City Bank at Paris to deposit 27,000,000 francs in the name of the 1896 bondholders. Further directed Legation to confirm these instructions to the National City Bank at Paris.

Other cables here mentioned confirmed above and directed National City Bank, Paris, to deposit 27,000,000 francs with Société Générale de Credit Industriel et Commercial. Deposit to be made not as agent for Haitian Government but on behalf of bondholders 1896 loan. Letter of November 22nd not yet received but cable merely stated that demand was made for payment in gold francs.