810.79611 Pan American Airways, Inc./166
The High Commissioner in Haiti (Russell) to the Secretary of State
[Received December 6.]
Sir: I have the honor to report that the officials of the Pan-American Airways, Inc., have recently been in Haiti and have taken up with me the question of obtaining a concession or contract with the Haitian government. There is attached hereto a copy of the contract first proposed by the Pan-American Airways, Inc. There is also attached a memorandum giving the views of the treaty officials on the proposed contract.75
The Pan-American Airways, Inc., is in agreement except as to article 8, and it proposed a new article 8, copy attached.
A few days ago President Borno spoke to me on this subject and said that he believed that the Haitian government should assist this new industry in Haiti which he thought would be of material benefit to the country, and that, as a consequence, he was prepared to heartily endorse article 8 submitted by the company allowing exemption from taxes and payment of import duties on gasoline, oils, special tools, and spare parts. The representative of the Pan-American Airways, Inc., at Port au Prince informs me that other governments have already agreed to a clause similar to the proposed article 8, and while from a financial point of view the question is one of small moment, from a political point of view the rejection of this clause by Haiti would be serious, in as much as other countries have readily agreed to it and would be unable to understand how Haiti was to be excepted.
Dr. Millspaugh, the Financial Adviser-General Receiver is strongly opposed to the inclusion of this clause in the contract. I feel that in view of the fact that the work is pioneer work, that it will unquestionably be a decided benefit to Haiti and form one of those ties that I am trying to develop which will bind Haiti to the United States commercially in such manner as to assure the future stability of this country, that it would be perfectly proper to permit the [Page 794] desired exemption, particularly in view of the fact that President Borno, representing Haiti, is strongly in favor of it.
The representative of the Pan-American Airways, Inc., has just presented a new article, copy attached, which he desires incorporated in the proposed contract as article 16. This article is now being studied. At first glance I am not in particular sympathy with it, and do not believe that there would be much difficulty in having it eliminated, particularly if article 8, as proposed by the company was included in the contract.
It is requested that the Department inform me by telegraph its views regarding article 8 proposed by the company, in order that the representative of the Pan-American Airways, Inc., may take up this question with the Haitian government to the end that the contract may be consummated at an early date.
I have [etc.]
- Not printed.↩