838.00/2936a: Telegram

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

14. Department is giving very careful study to the Haitian matter and hopes to send you detailed instructions in a few days. The Department is inclined to feel that extensive concessions can be made with regard to the non-financial Treaty Services only on a recognition and re-affirmation by Haiti of effective control by the Financial Adviser-General Receiver over the financial services, such control to continue so long as any of the bonds are outstanding. It is likely that the Department’s definite instructions will take the position that without effective control of the non-financial services it is preferable not to have responsibility therefor and to turn these services back to the Haitian Government. This of course does not apply to the constabulary which is specifically provided for in Article V and X of the Treaty.

We are therefore considering proposing to Haiti a revised Convention which will confirm and extend the financial control throughout life of present outstanding bonds, while at same time it turns back to Haitian Government as rapidly as possible the non-financial services, excluding the Garde. But the Department’s position will be that if it has responsibility it must have control and will insist upon the observance of the present Treaty until modified by such a new Convention. [Page 428] Department will therefore reply to the Bellegarde note supporting position you and Commander Duncan have taken.

In part the Treaty provisions are confined to the interests of the two Governments and can be modified by them but in part the provisions of the Treaty have been made to protect the interests of third parties who have become creditors of Haiti on the faith of these provisions of the Treaty and the faith of the United States and Haiti has been pledged as to the performance of these stipulations. Those parts of the Treaty can not therefore be changed until all the bonds issued in reliance on the safeguards provided in that Treaty are retired.

The Department desires you to know its feelings in the matter as it feels that difficulties will be cleared away in getting the Haitians to understand our program if the bases of our policy and our limitations are understood from the beginning.