839.51/2451
The Dominican Chargé ( Ariza ) to the Secretary of State
Mr. Secretary of State: Supplementing my communication of August 8, 1924, I have to inform Your Excellency that the $2,500,000 loan now being negotiated with Messrs. Lee, Higginson and Company, is to be for two years with an option for the Dominican Government to redeem the bonds of that loan in whole or in part six months after the issue.
I forward herewith to Your Excellency a copy of the draft of contract submitted by Messrs. Lee, Higginson and Company.24
[Page 653]Before closing the negotiations I should like to know whether the President of the United States would give his consent to this loan in accordance with the provision in the Convention of 1907, and would agree to let the bonds given as security ($3,300,000, 5½%, 1922) enjoy the following securities granted by the Executive Order No. 735 of March 28, 1922, to the bonds issued in that year for the face value of $6,700,000, namely
- 1.
- The Receiver General of the Dominican Customs appointed in accordance with the Convention of 1907, will effect, while the said Convention is in force, the payments that may be necessary for the service of the bonds issued as security ($3,300,000, 5½%, 1922) derived from the revenues belonging to the Dominican Government;
- 2.
- That after the expiration of the Convention of 1907 the said Customhouse receipts will be collected and applied by an official appointed by the President of the United States in the same manner as was appointed the present Receiver General of the Dominican Customs;
- 3.
- After the expiration of the Convention of 1907 the $10,000,000 of bonds authorized in March 1922, or any part thereof that may still be outstanding, will constitute a first lien on the said customs revenues subject to the necessary expenses of collection, until all the bonds shall have been entirely paid for. (Executive Order No. 735, Article 8.)
I hope that there will be no objection to having the security above mentioned inserted in the bonds.
I avail myself [etc.]