839.51/3532: Telegram

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

74. Department’s telegram number 38, October 14, 7 p.m. Dunn points out that article 1 of the Convention supports his belief that interest must be paid on all bonds issued under the Convention and still outstanding before custom receipts can be applied to payment of any sinking fund. In practice, moreover, fiscal agents, in applying September payments to debt service, apparently considered that default occurred on sinking fund of second series 1926 bonds only and did not apportion default pro rata to first and second series of 1926. Acting Receiver says receivership has followed the same practice in forwarding payments to the fiscal agents.