838.77/254: Telegram

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

117. President Borno and Minister for Foreign Affairs have in official communications both informed me that in view of the limited time Haitian Government is unable to have National Railroad plan of reorganization approved by the legislative body but the following action has been taken: Minister of Foreign Affairs has by note informed French Minister here, Haitian Legation at Paris and me as follows (translation):

“The Government of the Republic of Haiti, approving in principle the plan of reorganization authorizes by these presents Mr. Roger L. Farnham, receiver of the National Railroad of Haiti, to negotiate and conclude with the bondholders of the said company an agreement stipulating that by means of the funds already turned over by the Haitian State to the receiver of the company for guarantee of interest and sinking fund, less a minimum amount of $600,000, which might be retained for the continuation of the construction work of the railway concession, there will be paid to the bondholders in question sum of $35.75 per bond with all coupons attached, and that the bonds with the coupons attached bearing the guarantee of the Haitian State will be exchanged for 6-percent bonds of the Republic of Haiti of series C in the proportion of $72.39 for each one of the bonds of $96.53 of the National Railway of Haiti bearing the guarantee of the Haitian State for the payment of the interest and amortization.”