838.51 A/213: Telegram

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

124. The Haitian Government has proposed in a formal note the immediate negotiation of a modus operandi under which the office of the Financial Adviser-General Receiver would be abolished on December 31st and would be replaced by a fiscal agent and two assistants who would have rather vague powers with respect to the supervision of revenue collection and the maintenance of the debt service. Copy and translation will be transmitted as soon as practicable.

I shall inform the Minister for Foreign Affairs that I am transmitting his proposal to the Department but that I feel sure that the Government of the United States will be disinclined to discuss any new financial arrangements while the difficulties created by the Haitian Government in connection with the budgetary laws are still without solution and that in any event as we have repeatedly stated, we could not accept an arrangement which would virtually abolish the financial control existing under the treaty.