839.6463/139: Telegram

The Secretary of State to the Minister in the Dominican Republic (Russell)

2. Your 5, January 28, 5 p.m., and 6, February 1, noon.

Hunt has shown Department copy letter mentioned your January 28, 5 p.m., and this does not appear to contain any limitation upon amount which he agreed to recommend to his principals should be advanced for repairs.

In view Dominican Government’s apparent disinclination to carry out its obligations under contract of June 15, 1923, Department is disposed to recommend to Santo Domingo Company to accept $450,000 gold, or its equivalent in Dominican bonds at 90% of their par value in full payment of properties described in contract, which shall thereupon be transferred to the order of the Dominican Government in their present condition.

Department desires to be promptly advised whether Dominican Government will agree to settlement on this basis which will afford that Government opportunity to make its own repairs on plant and apparently render it unnecessary in order to place it in operative condition to expend full amount set forth in expert’s report for repairs and improvements.