839.51/2575

Memorandum by the Commissioner in the Dominican Republic (Welles)3 of a Conversation With the Confidential Agent of President Vasquez (Morales)

[Extract]

I

Señor Angel Morales, former Minister of the Interior and Police in the Cabinet of President Vasquez, arrived in Washington on March 27, as the Confidential Agent of the President to take up with the Department of State various matters of interest to this Government, principally certain questions affecting the interpretation to be given certain articles in the Convention signed December 27, 1924, at present pending ratification by the Dominican Government.

The chief purpose of Señor Morales’ visit was to ascertain whether the Government of the United States would see any objection [Page 50] to the ratification by the Dominican Congress of the new Convention with certain reservations contained in a draft which he handed to me, which project contained, as well, in the law of ratification certain limitations to be placed by the Congress upon the Executive in the negotiation of the loan of $25,000,000 contemplated in the Convention. (See Annex A.)4 After discussion of this project, I suggested to Mr. Morales the desirability of modifying the proposed limitations to be placed upon the Executive’s authority so that the Executive would be permitted as much freedom as possible in his dealings with the bankers. These modifications were at once accepted by the President, who was kept in touch, during the course of our conferences, by cable, with all developments. The reservations contemplated in the law of ratification are identical with those reservations contained in the law ratifying the Convention of 1907. I inquired of Señor Morales whether, should the new Convention be ratified in this manner, the Dominican Government would be satisfied with a reply from the Department of State identical in substance to the reply addressed by Secretary Root to the Dominican Minister in Washington when he was notified by the latter of the ratification of the Convention of 1907 in a similar manner.5 Señor Morales stated that such a reply would be entirely acceptable to his Government. Duplicate copies of the proposed law of ratification were prepared and these copies were initialed by Señor Morales and myself. One of these copies is attached hereto as Annex B. The proposed law of ratification in the form initialed was approved by the Secretary upon the understanding that the reply of our Government above indicated would be acceptable to the Dominican Government as Señor Morales advised me.6

. . . . . . . . . . . . . .

S[umner] W[elles]
[Enclosure—Annex B]

Draft Resolution for the Dominican National Congress Approving the Convention of December 27, 1924

The National Congress, etc.,

In view of the Convention signed ad referendum in Washington by Representatives of the Government of the United States and of the Dominican Government, which is as follows—(Here follows the Convention in extenso.)

Inasmuch as the Dominican Republic has expressed in the second paragraph of the preamble of the Treaty of Evacuation entered into [Page 51] with the United States,7 approved by the National Congress on July 14, 1924, and promulgated upon the same date by the Executive Power, its invariable understanding with regard to the rights inherent in its sovereignty; that the Government of the United States has stated in the same treaty that “it has never had and does not have the intention of infringing upon the sovereignty and independence of the Dominican Nation”; and that the National Congress understands that in ratifying the Convention above quoted it modifies in no manner these declarations of both Governments to which reference has been made;

Inasmuch as it is the intention of the Dominican Congress to maintain, as in effect it does maintain, the understanding expressed in paragraphs (a) and (b) of the preamble of the Resolution of the National Congress ratifying, in May 1907, the Dominican-American Convention signed on February 8, 1907, which were approved by the Government of the United States and read as follows:

(a)
As to Article I: It is understood that the employees mentioned in that article do not in any case include those who are to be appointed by the Dominican Executive Power in customhouses of the Republic in accordance with our existing laws.
(b)
As to Article II: The protection of the Receiver General and his assistants by the American Government shall only take place in case the Dominican Government shall find it impossible to extend it.

Inasmuch as in accordance with the sense of the text of the sixth paragraph of the preamble of the Convention last submitted to the Dominican Congress, one of the principal objects of the said new Convention is “to provide for the refunding on terms more advantageous to the Republic of its obligations”, etc.,

In the exercise of its Constitutional faculty, has approved the following law:

  • Article I.—To approve, as in effect it does approve, within the limits of the understanding above expressed, the Convention signed ad referendum in Washington on December 27, 1924, the text of which has been incorporated in the present law.
  • Article II.—The loan which the Executive Power is authorized to negotiate in accordance with the terms of this Convention shall be made upon the following condition:—
    (a)
    That the period fixed for its total amortization shall not exceed that legally fixed for the amortization of the prior loans of which bonds are still outstanding;
    (b)
    That the terms of issuance of the bonds of the new loan shall not be less favorable than the terms upon which the bonds of the prior loans now outstanding were issued;
    (c)
    That all moneys obtained by the Government from the said loan after the refunding operation has been effected shall be devoted exclusively to permanent public improvements and to other projects designed to further the economic and industrial development of the country.

  • A[ngel] M[orales]
  • S[umner] W[elles]
  1. Mr. Welles had returned to the United States.
  2. Not printed.
  3. See Foreign Relations, 1907, pt. 1, pp. 310312.
  4. The remainder of the memorandum deals with other matters.
  5. Foreign Relations, 1924, vol. i, 631.