838.00/2934: Telegram

The Minister in Haiti ( Munro ) to the Secretary of State

17. The Haitianization negotiations have made little progress recently because the Haitian Government has insisted that it could not sign an agreement which did not include some definite provisions regarding the financial services. I have indicated our willingness to detach the Title Registry Office from the Bureau of Internal Revenue but have insisted that it would be impossible to assume any obligations regarding further Haitianization of the Customs and Internal Revenue Services. I suggested, however, that the agreement to be signed now might contain a clause stating that the two Governments would enter into a special accord regarding the financial control to be constituted after 1936 and that this clause might state that this accord would contain provisions for the further Haitianization of the financial services. After long discussions the Minister for Foreign Affairs said yesterday that my suggestion might be acceptable provided that the special accord were entered into in the very near future, say by October or December next. He proposed a clause reading approximately as follows:

“In order to assure the service [of the] interest and amortization of the loan of $40,000,000 issued in series, the high contracting parties declare themselves ready to conclude (insert here a period of time) a special accord on the basis of article No. 8 of the protocol of October 3, 1919. They agree to Haitianize by the same accord those services under the Financial Adviser-General Receiver which shall not have been Haitianized by the present general accord”.

This formula appears satisfactory except that it may be well to bring out more clearly the intention of the two parties that the Haitianization contemplated in the second sentence will be a gradual process as in the case of the tentative accords reached for the Public Works and the Public Health Services.

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[Paraphrase.] Inasmuch as there is a strong element here which advocates the repudiation of the protocol as illegal, I think it would be a great advantage to obtain a definite recognition by the Government of Haiti of its obligation under article 8 of the protocol. [End paraphrase.]

I recommend therefore that I be authorized to accept the inclusion in the Haitianization accord of a paragraph along the general lines proposed by the Minister for Foreign Affairs the exact language to be worked out by me with him. I should be glad if the Department would send instructions at its earliest convenience.