839.51/2542
The Dominican Minister (Ariza) to the Secretary of State
[Translation]
Washington, March 31,
1925.
Mr. Secretary of State: In order to forward to my Government under the head of information some ideas concerning the execution of the Convention signed in this city on December 27, 1924, between the United States of America and the Dominican Republic, which is awaiting the approval of the Dominican Congress, I have the honor to ask Your Excellency kindly to give me the ideas of the Department on the points herein below presented:
- (a)
- It has been contended in the Dominican Republic that the wording of paragraph 1 of Article VII of the above-mentioned Convention according to which “these agreements will go into force after they are approved by the contracting parties”, supposes that the consolidation of the debt must take place before the exchange of ratifications of the treaty. Does the Secretary of State understand, as I do, that the exchange of ratifications precedes the consolidation of the debt, and is an indispensable requisite for the issue of the bonds of the contemplated $25,000,000 loan?
- (b)
- Article III of the Convention of 1924 which reproduces word for word the first paragraph of the same article of the Convention of 1907,2 reads as follows: “Until the Dominican Republic has paid the whole amount of the bonds of the debt its public debt shall not be increased except by previous agreement between the Dominican Government and the United States”. Does the phrase “the whole amount of the bonds of the debt” refer in, the Convention of 1924 to the bonds to be issued for $25,000,000 in the same way as the same phrase in the Convention of 1907 had reference to the bonds also to be issued for $20,000,000? If so, does the State Department understand that the “previous agreement” between the two governments [Page 47] for the contract of the $25,000,000 loan results from the approval and ratification of the Convention of 1924, or on the contrary, there is required a separate and special agreement at the time of the issue of the new bonds?
- (c)
- Since the Convention of 1924 has no stipulation in any particular form for the issuance of the $25,000,000 bonds, does the Department consider, as I do, that its language admits of the possibility both of one emission for the whole amount stated and various partial issues as may best serve the interests of the Dominican Republic?
- (d)
- Article VII of the Convention of 1924 provides that when the ratifications of the said convention shall have been exchanged the Convention of February 8, 1907, shall be considered at an end. This being so, what would be the condition of the bonds issued under the Convention of 1907 that may not have been redeemed after the exchange of ratifications and before the consolidation of the debt? It seems evident that the Convention of 1907 having terminated, those bonds would stand under the protection of the Convention of 1924, and would continue to be governed as to the payment of interest and manner of amortization by the law enacted for every issue. The holders of such bonds could not invoke any vested right to claim that the Convention of 1907 is in force since the new convention extends to them the same guarantees.
I avail myself [etc.]
J. C. Ariza