838.00/3070: Telegram

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

26. Department has been giving careful consideration to your despatch No. 381 of April 21. It seems to us that before undertaking to discuss an arrangement for advancing the Haitianization of the Garde and the withdrawal of the Marine Brigade, we should reach an agreement with the Haitian Government concerning the system of financial control which, in accordance with Article VIII of the Protocol of 1919, will take effect on the termination of the Treaty.

In your telegrams 22 and 25, dated respectively March 20 and March 30, 1931,19 in commenting on the views expressed by the Department that the effective financial control as at present exercised should be [Page 636] continued as long as any of the present bonds are outstanding, you expressed the view that, in your opinion, the control as now exercised goes much further than will be necessary adequately to protect the interests of the bondholders after 1936. You stated that you believed that an agreement providing sufficient control to protect the interests of the bondholders could be worked out after the Haitianization program was disposed of. Have you and the Financial Adviser worked out a draft agreement on this matter which you consider satisfactory? The Department would like to be furnished with such a draft in order that consideration can be given to the preparation of the necessary instructions to you regarding this matter, as well as regarding the Haitian proposal for early Haitianization of the Garde. Once you have prepared what you consider a satisfactory draft arrangement for financial control it might be advisable for you to come to Washington for consultation, and the Department will be prepared to instruct you in that sense, if you concur that this would be advisable.