838.51/2318: Telegram

The Chargé in Haiti ( McGurk ) to the Secretary of State

104. On September 5th the Minister of Finance sent to Mr. Pixley the law of ways and means and the law of expenditures covering the budget. Mr. Pixley has pointed out to me the following from his preliminary study of the laws:

The preamble to each law reads in translation as follows:

“In view of article 55 of the Constitution;

Considering the situation arising from the forced extension of the convention by the so-called Additional Act, which convention expired on May 3rd, 1926; a situation which the Legislature has demanded that the Government bring to an end as soon as possible by immediately undertaking negotiations with the American Government;

Considering that while awaiting the result of these negotiations, the public services should function by virtue of the law of finance and the budget, effected in consideration of this situation and freed of all the illegitimate budgets of which they have formerly been the object, et cetera.”

The law of ways and means estimates receipts of gourdes 32,796,770, whereas the Financial Adviser’s office estimates receipts at gourdes 32,000,000.
Since the budget of the Department of Finance remains the same as originally proposed it would appear that the Customs Service and the Internal Revenue Service have been budgeted in detail and placed directly under the administration of the Department of Finance.
No provision is made for making available automatically 5 percent of the customs receipts and 15 percent of internal revenue receipts to the respective services when actual receipts exceed budgetary estimates. See article 7 of the present law.
As regards 5 percent fund in particular, the new law provides that at the end of the year the balance of credit allotted to the Receiver General revert to the Treasury. Pixley points out that this is contrary to present interpretation of the treaty.

Pixley will make a thorough study of the laws and upon receipt of the budgetary detail will confer with the Minister of Finance and further developments will be reported promptly to the Department. Copy of the Law of Ways and Means and a copy of the Law of Expenditures as handed to Pixley on the 5th instant will be forwarded by the next air mail.