838.51/2335: Telegram

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

117. Pixley and I again discussed budget with the Ministers yesterday evening after the Cabinet meeting. Pixley had found considerable increases in the proposed budget figures as compared with the budget figures for the present year and had recommended that they be eliminated. This the Cabinet refused to do and proposed a general cut of 4 percent in salaries and other appropriations except the public debt. We again urged the Minister to eliminate all increases and to give us the Departmental budgets covering the services taken over which they have again revised and are now withholding. We would then attempt to arrive at a solution which would include a satisfactory arrangement regarding the finance laws. The Cabinet meets again this morning and we will be called in conference after it adjourns.