839.51/2684
The Dominican Minister (Ariza) to the Secretary of State
The undersigned, Envoy Extraordinary and Minister Plenipotentiary of the Dominican Republic, has the honor to inform the Secretary [Page 56] of State of the United States of America that he has received instructions from the Government of the Dominican Republic to place on record its understanding with reference to the Convention between the United States and the Dominican Republic signed December 27, 1924, to replace the Convention of February 8, 1907, between the two countries, that the words “all bonds outstanding” as contained in the second paragraph of Article I of the Convention signed December 27, 1924, as well as the words “said bonds” and “all bonds”, wherever contained in that paragraph are intended to relate as well to outstanding bonds of the issues of 1908, 1918 and 1922, referred to in the preamble of the last mentioned Convention as to the bonds to be issued in the future under the terms of that Convention, the result being that the duties and functions of the General Receiver and the assistant Receivers and other employees of the Receivership, as enumerated and set forth in the said Article I of the Convention signed December 27, 1924, are intended to continue in force and effect until payment or retirement of any and all bonds issued by the Dominican Government in 1908, 1918 and 1922, and of any and all bonds which shall be issued under the terms of the last mentioned Convention. In other words, it is not intended that the abrogation of the Convention of 1907 shall affect the validity or security of the rights of the holders of bonds issued in accordance with the provisions of that Convention or expressly recognized by the Convention of Ratification signed June 12, 1924, as legally binding upon the Dominican Republic, nor in any way modify the terms of obligations of the Dominican Republic represented by such bonds nor affect their respective rights of priority as to interest or amortization or redemption over each other and over subsequent loans, the understanding being that the Receiver General of the Dominican Customs whether holding office under the Convention of 1907 or the Convention of 1924 shall after paying the expenses of the receivership, apply the revenues collected by him to the service of such issues of bonds as are now outstanding and until their eventual payment or redemption, before applying such revenues to the payment of either interest on or the principal of subsequent loans.
The undersigned further has the honor to say that he has been instructed by his Government to say that it understands that the provisions of the Convention of 1924 relating to a contemplated loan of twenty-five million dollars, do not contemplate that such amount shall be issued as one loan but authorize a series of loans, the aggregate amount of which at any time when added to the sum of the outstanding bonds of the issue of 1908, 1918 and 1922 shall not exceed the said sum of twenty-five million dollars, it being lastly understood that the General Receiver shall apply the customs revenues collected by him to the payment of interests and amortization as required by [Page 57] each series, but always subordinate to the prior obligations of earlier loans as before stated.