838.51/2102

The French Ambassador ( Claudel ) to the Secretary of State

[Translation]

Mr. Secretary of State: In 1923, after long conversations, a settlement was reached between the holders of 6 per cent bonds of the Compagnie Nationale des Chemins de Fer of Haiti and the liquidator of this company, according to which each bond should be exchanged against a sum of $35.75 in specie and a 6 per cent bond of the Republic of Haiti, with a face value of $75, called bond “C”.35

To date, 36,249 certificates have been thus exchanged, leaving a remainder of 471 certificates. In spite of the existence of this remainder, the American Financial Adviser of the Republic of Haiti decided, April 1, 1926, to withdraw the “C” bonds provided for the above mentioned exchange. The Metropolitan Trust Company of New York, entrusted with these exchange transactions, accordingly finds itself unable to give any satisfaction to various holders who have, since that time, presented 56 vouchers for exchange against the “C” bonds.

To my knowledge, neither the Law of December 27, 1923 authorizing the creation of the “C” bonds, nor any subsequent law has fixed a time limit for the exchanges provided in the Paris agreement. The Financial Adviser thus seems to have acted purely on his own initiative, without any legal authorization. When he left office, the liquidator of the Compagnie des Chemins de Fer d’Haiti, Mr. R. L. Farnham, wrote to his successor, but could secure no satisfaction.

Under these circumstances, I should be grateful to Your Excellency if you would be so kind as to use your good offices with the Financial Adviser of Haiti to the end that he may forward to the liquidator the necessary “C” bonds for the exchange of old certificates of the Compagnie des Chemins de Fer which are now presented to the Metropolitan Trust Company or which may be presented in the future.

Please accept [etc.]

Claudel