838.51/1707
The Secretary of State to the French Chargé (Laboulaye).
Sir: I beg to acknowledge the receipt of your Embassy’s notes of June 12, 1924 and September 5, 1924, discussing in detail your Government’s views with regard to the request of the Bank of the Parisian Union that the question of redeeming in gold rather than in francs the bonds issued by the Republic of Haiti in 1910 be submitted to arbitration. The considerations which you present have received the most careful study in the Department of State.
This Government had hitherto understood that the Bank of the Parisian Union had requested arbitration in this matter on behalf of certain holders of the bonds of 1910. As you have already been informally advised, this Government has expressed the opinion that the holders of the bonds of 1910, since they were presumably not parties to the loan contract, would not be in a position to demand arbitration under the provisions of Article 30 of that contract, and that the Fiscal Agent under the contract could not properly advance [Page 299] a claim for arbitration on their behalf. This Government has also expressed the opinion that the Fiscal Agent would not appear to have any right to raise an objection to the mandate which might be received from the Haitian Government in the matter of redeeming bonds upon presentation, or to do otherwise than to apply for the purpose specified any funds which it might receive.
It is realized, however, that a new question would be presented for consideration if the Bank of the Parisian Union on its own account should present a demand for arbitration under the provisions of Article 30 of the loan contract. It appears from your communications above referred to that the Bank has now presented such a demand in its capacity as purchaser and distributor of the 1910 loan. In order that the question thus presented may receive appropriate consideration, therefore, I have caused copies of your notes of June 12 and September 5 to be transmitted to the American Legation at Port au Prince, with instructions to discuss the matter with the Financial Adviser and other appropriate officials of the Haitian Government, and to report his views thereon at his early convenience.
Accept [etc.]