839.51/2838a: Telegram

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

31. Before approving the proposed Dominican loan in any amount the Department is anxious to feel assured that the money destined for public works will be wisely and efficiently expended. The Department understands that one of the conditions for the bidders on the aqueduct project was that a surety company would execute a performance bond in the sum of $300,000 guaranteeing satisfactory completion of the contract. The Department feels that this was a wise precaution on the part of the Dominican Government and trusts that this condition will be insisted upon. You may informally advise the President of the above and state further that the Department can approve a loan to the Dominican Government for construction of public works only if the Department is satisfied that these works will be undertaken by reliable and experienced companies.

Kellogg