839.51/2842: Telegram
The Minister in the Dominican Republic (Young) to the Secretary of State
[Received 4:00 p.m.]
91. Department’s telegram No. 32, October 28, 4 p.m. It is my belief that Public Works Board such as Department suggested would not be acceptable to Dominican Government; I am certain of this if the board were to include the present General Receiver of Customs.
I feel that only practicable manner of meeting the Department’s objections to giving its approval of a $10,000,000 loan is to limit amount of money which may annually be made available to Dominican Government from proceeds of loan and then only for purposes stated in law of authorization; for instance, $4,000,000 could be made available during first year following sale of bonds, $4,000,000 the second, and $2,000,000 the third and last, and assurances could be given by Dominican Government that even with this limitation the funds will not be withdrawn except as needed by the progress of the works. Dominican Government would probably oppose this suggestion as its program calls for $5,000,000 the first year and $5,000,000 the second year, but suggestion would probably be accepted eventually. While not certain that this suggestion, if made effective, will constitute complete safeguard it would without question ensure a wiser and more economical expenditure.