839.51/2857
The Dominican Minister (Morales) to the Secretary of State
Mr. Secretary of State: The Government of the Dominican Republic under the Law No. 516 of October 15, 1926, has decided to float a loan for ten million dollars. The issue of bonds will be for 14 years, paying an interest of not more than 5½ percent, redeemable at 101 and the redemption of which will begin in the year 1930 at the rate of one million ten thousand dollars a year and will be ended at the year 1940.
The Dominican Government will divide the issue into two series. The first series of bonds in the sum of five million dollars will be immediately offered for sale and the second series in the same amount shall be sold after a year, when the first five million dollars have been used, the Government reserving to itself not to sell the second series except under market conditions not less advantageous than the present ones.
The proceeds of the loan will be invested as follows:
- (a)
- Two million two hundred forty-five thousand dollars in the construction of an aqueduct, system of sewers, etc., in the city of Santo Domingo.
- (b)
- Two million five hundred thousand dollars to carry on the general plan of highways and distributed as follows: Four hundred thousand dollars for the completion of the Santiago-Puerto Plata road; Two hundred fifty thousand dollars for the extension of the Sanchez road as far as the Haytian frontier; One hundred twenty thousand dollars for the completion of the La Romana road until it joins the Mella road; Five hundred thousand dollars to carry on the Moca-Samaná road; One hundred fifty thousand dollars to complete the Azua-Barahona road; Two hundred thousand dollars to extend the Duarte road from Monte-Cristy to Dajobón; One hundred fifty [Page 46] thousand dollars to continue the Sabana de la Mar-Hato Mayor road; One hundred twenty thousand dollars to complete the San José de Ocoa road to its junction with the Sanchez road; Two hundred fifty thousand dollars for the construction of various bridges on the several roads; Three hundred sixty thousand dollars for the completion of the Bayaguana, Moca-Jamao, Jarabacoa and San José road.
- (c)
- Two million dollars for the improvement of the harbors of Santo Domingo, San Pedro de Macorís and Puerto Plata.
- (d)
- One million six hundred thousand dollars for the Immigration, Colonization, and Irrigation of wastelands in accordance with the plan of the Department of Agriculture and Immigration now being carried out by it and according to the following allotment:
- For irrigation: Baní district, two hundred thousand dollars; Santiago, twenty-four thousand dollars; Monte Cristy, two hundred thousand dollars; San Juan, one hundred seventy-five thousand dollars and Azua, twenty-one thousand dollars. For immigration and colonization: Bonao district, ninety-one thousand dollars; El Valle, one hundred thousand dollars; Monte Cristy, one hundred thousand dollars; Seibo, one hundred thousand dollars; the Dominico-Haitiana frontier, three hundred thousand dollars; Yuma, one hundred thousand dollars; San Francisco de Macorís, one hundred thousand dollars; Baní, fifty thousand dollars; and San Juan, forty thousand dollars.
- (e)
- Two hundred thousand dollars for the building of ten school houses in various cities of the country.
- (f)
- Five hundred thousand dollars to promote the creation of a Farmers Bank.
In accordance with Article 3 of the Convention signed in Washington on December 27, 1924, by the representatives of the Government of the United States and of the Dominican Republic I earnestly apply for the approval of the Government of the United States of the contracting for such a loan.
I avail myself [etc.]