838.51/2510

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

No. 490

Sir: I have the honor to forward herewith the original of the Treaty which was signed on September 3, 1932.

Respectfully yours,

Dana G. Munro
[Enclosure]

Unperfected Treaty No. R–8

Treaty Between the United States of America and the Republic of Haiti for the Further Haitianization of the Treaty Services 24

preamble

The United States of America and the Republic of Haiti, desirous of strengthening the bonds of amity which happily prevail between them and of giving a satisfactory solution to certain questions which have arisen in connection with the Treaty of September 16, 1915, have resolved to conclude a treaty for that purpose and have appointed as their plenipotentiaries:

The President of the United States of America, Dana G. Munro, Envoy Extraordinary and Minister Plenipotentiary of the United States to Haiti,

The President of the Republic of Haiti, Albert Blanchet, Secretary of State for Foreign Relations of the Republic of Haiti;

Who, after communicating to each other their full powers, found in good and due form, have agreed upon the following Articles:

Article I

In view of the substantial accomplishment of the purposes of the Treaty of September 16, 1915, the two Governments have agreed to terminate as soon as practicable and in an orderly manner the special situation created thereunder and for this purpose have agreed upon the following program: [Page 672]

1.
Articles IV, XII and XIII of the Treaty are declared to have been fully executed and are hereby abrogated.
2.
Article X will be abrogated upon the complete Haitianization of the Garde, as provided for in Protocol A attached to this Treaty.
3.
Articles II, III and V–IX inclusive will be abrogated on December 31, 1934, upon which date the two Governments will put into effect the provisions of Protocol B attached to this Treaty.

Article II

The present Treaty shall be ratified by each party in conformity with the respective constitutions of the two countries and ratifications shall be exchanged in the City of Port au Prince as soon as possible.

In witness whereof, We, the respective Plenipotentiaries, have signed this Treaty and hereunto affixed our seals.

Done at Port au Prince, in duplicate, in English and French, this third day of September one thousand nine hundred and thirty two.

[seal]
Dana G. Munro

[seal]
A. Blanchet

protocol a

Article I

The American officers now serving with the Garde d’Haïti will be replaced as rapidly as possible by Haitian officers, in such a manner that by December 31, 1934, the Garde shall be completely commanded by Haitian officers.

Article II

By December 31, 1934, the Garde, under complete command of Haitian officers, will be turned over to a Colonel of the Garde in active service whom the President of the Republic shall designate as Commandant.

Article III

In order to carry out the above program intensive training of Haitian officers will be carried on from the date of the present agreement.

Article IV

The Department of the South will be completely Haitianized at the latest on December 31, 1932; the Department of the North at the latest on December 31, 1933; and the Department of Port au Prince at the latest on December 31, 1934.

[Page 673]

Article V

The promotions to be effected during the course of the Haitianization of the Garde will be made after examinations held in the presence of the representative of the Government of Haiti in conformity with Article X of the Treaty of September 16, 1915.

Article VI

Since it is considered desirable to employ the services of a Military Mission to complete the instruction, training and discipline of the Garde, the President of the United States agrees to designate such a mission. The details of the organization of this mission and the powers to be conferred upon it will be the subject of a separate agreement.

Article VII

The Marine Brigade of the United States and the American Scientific Mission established by the accord of August 5, 1931, will be withdrawn from Haitian territory as soon as may prove practicable, and in any event withdrawal will begin not later than the time when complete Haitianization of the Garde is effected.

Article VIII

The Government of Haiti, in order to maintain the public order and peace necessary for the regular collection of the revenues pledged for the service of the bonds issued in accord with the Protocol of October 3, 1919, assumes the obligation of maintaining strict discipline in the Garde and of applying, until all of the bonds are amortized or redeemed, the present regulations of the Garde d’Haïti. It will enact a statute which will fix the conditions of appointments, promotions and retirement in the Garde.

  • Dana G. Munro
  • A. Blanchet

protocol b

Article I

Until the total retirement or refunding of all bonds issued in accord with the Protocol of October 3, 1919, a Fiscal Representative and a Deputy Fiscal Representative, appointed by the President of Haiti upon the nomination of the President of the United States, shall exercise the powers hereinafter conferred in order adequately to insure the interest and amortization of the said loan.

Article II

The Fiscal Representative shall administer the tariff and shall collect all duties and other charges on imports and exports accruing at [Page 674] the several custom houses and ports of entry of the Republic of Haiti under the customs tariff and laws now or hereafter in force. He shall have for this purpose and for the necessary audit and accounting services such assistants and employees as may appear necessary. The expenses of the customs service, however, including the amounts upon which the two Governments may agree as the salary of the Fiscal Representative, and the Deputy Fiscal Representative, may not exceed five per centum of the receipts from the customs duties, unless by agreement of the two Governments, and these expenses will constitute a second charge upon the customs receipts next in order after the payment of the service of the bonds issued in accord with the Protocol of October 3, 1919.

The President of Haiti will issue commissions to employees occupying positions of authority and trust in the Customs Service upon the recommendation of the Fiscal Representative. The form of these commissions will be agreed upon by the Minister of Finance and the Fiscal Representative. If the services of a commissioned employee should not be satisfactory or if his removal should be deemed necessary for other reasons, the Fiscal Representative may terminate his services and may at the same time recommend such action as he considers advisable regarding his replacement, making a temporary appointment if necessary until a new commission is issued.

The Fiscal Representative will make every effort to train Haitian personnel for all positions in the Customs Service. At least two years before the complete amortization of the outstanding bonds, he shall select Haitian employees for special training as Receiver General and Deputy Receiver General of Customs in order that the Service, efficiently organized and fully Haitianized, may be turned over to their direction when complete amortization takes place.

Article III

The Internal Revenue Service with its present organization shall be placed under a Haitian Director and with an exclusively Haitian personnel, unless the Haitian Government should express its desire to retain the services of one or more foreign technical employees. The Director of Internal Revenue shall have full administrative authority over the Service, under the high direction of the Minister of Finance, but the Fiscal Representative shall have the power and the duty to inspect all activities of the Internal Revenue Service and to make any appropriate recommendations regarding the conduct of the service or the efficiency of individual employees.

[Page 675]

The Fiscal Representative, for this inspection service, shall employ such American and Haitian inspectors and assistants as may appear necessary, providing, however, that the total amount allocated annually for this service shall not exceed five per cent of the total amount of the internal revenue collections, except by previous agreement between the two Governments. This allocation shall be made by means of funds established, as set forth in Article V hereof.

If the Fiscal Representative should notify the Minister of Finance that there is reason to suppose that the conduct of any officer or employee of the Internal Revenue Service is incorrect or inefficient, such employee will be suspended and will not be reinstated until the charges against him have been disproved to the satisfaction of the Minister of Finance and of the Fiscal Representative.

The Fiscal Representative shall present to the Minister of Finance such suggestions as may appear helpful regarding the improvement of existing internal revenue legislation.

The revenues collected by the Internal Revenue Service shall be deposited in the National Bank as provided in Article VIII hereof.

A law regarding the organization of the Internal Revenue Service will govern the appointment, promotion, and retirement of the personnel of this Service.

Article IV

If for any reason the internal revenues should decline so that the amount collected falls below 3,000,000 gourdes during the six months from October to March inclusive, or below 2,000,000 gourdes during the six months from April to September inclusive, the Fiscal Representative shall call the situation to the attention of the Minister of Finance and shall make such recommendations as he may deem appropriate for restoring collections to their proper level; and the Haitian Government will put these recommendations into effect.

Article V

The expenses of the Internal Revenue Service shall be paid out of the amounts collected, in accord with a schedule of payments agreed upon between the Fiscal Representative and the Minister of Finance. These expenses shall not exceed twelve per cent of the total amount of internal revenue collections, except by agreement between the Minister of Finance and the Fiscal Representative. An additional amount not exceeding five per cent of the total amount of the internal revenue collections shall be included in the same schedule to cover the salaries and expenses of the inspectors who shall be attached to the office of the Fiscal Representative for the inspection of the Internal Revenue Service.

[Page 676]

Article VI

The expenses of the Internal Revenue Service, including the expenses of the inspectors attached to the office of the Fiscal Representative, shall constitute a second charge upon the internal revenues, next in order after the payment of the service of the bonds issued in accord with the Protocol of October 3, 1919.

Article VII

All authorities of the Haitian Government will extend full protection and all proper assistance to the Customs Service and to the Internal Revenue Service in order to assure their proper operation and the enforcement of the tax laws.

Article VIII

All monies received by the Haitian Government shall be deposited in the National Bank to the credit of the Haitian Government with the exception of the amounts needed for payment of the debt service as required by the loan contracts and five per cent of the customs collections which amounts shall be retained by the Fiscal Representative from the customs duties and charges collected and received by him. The Bank shall set aside preferentially each month to the credit of the Fiscal Representative before permitting the withdrawal of any funds belonging to the Government the amount required for the expenses of the internal revenue collection and of the Internal Revenue Inspection Service in addition to any amount which might be required in any month to cover a deficit in the sum needed for the service of the loans resulting from failure of the customs collections to aggregate that sum.

All payments of government funds shall continue to be made by checks prepared by the Service of Payments. The existing arrangement, as agreed upon between the two Governments on August 5, 1931, shall continue to govern this Service except that checks for the payment of the debt service and the expenses of revenue collection, shall be signed by the Fiscal Representative and checks for other governmental expenses shall bear the signature of the Minister of Finance.

Article IX

Until the complete amortization of the bonds issued in accord with the Protocol of October 3, 1919, or the retirement of these bonds before their due date, the Government of Haiti undertakes:

1.
To balance its budget each year and not to authorize any extraordinary or supplemental appropriations in excess of budgetary items unless unobligated funds are available to cover such extraordinary or supplemental appropriations, after setting up such reserves as may be [Page 677] necessary to assure the payment of the debt service and other budgetary expenses during those months of the fiscal year when receipts are normally reduced.
2.
Not to permit any department of the Government to exceed its monthly allocation (douzième) except in case of demonstrated necessity.
3.
Not to reduce the customs tariff nor to modify the internal taxes in such a way as to reduce the total yield of the internal revenues.
4.
Not to contract any debt nor assume any financial obligation unless the ordinary revenues of the Republic available for that purpose after defraying the expenses of the Government shall be adequate to pay the interest and provide a sinking fund for the final discharge of such debt; and not to grant any subsidy for a period of more than one year, except with the accord of the Fiscal Representative.
5.
To include annually in the budget of the Republic the amounts necessary for the regular service of the public debt and other contractual obligations, as well as lump sums representing the customs five per cent and the internal revenue twelve per cent and inspection service funds. If the revenues received in any month should be insufficient to meet the full debt service and expenses of collection, the Minister of Finance will pay to the Fiscal Representative from his reserves the amount required to make up the deficit.

In everything relating to the matters dealt with in this article, the Haitian Government will proceed in accord with the Fiscal Representative.

The Government of Haiti will reach an accord with the Government of the United States regarding the issue of any new series of the loan authorized by the law of June 26, 1922.

Article X

If it should appear during the course of a fiscal year that the revenues will be substantially less than the estimates used in preparing the budget, the Haitian Government, acting in accord with the Fiscal Representative, will adopt adequate means to meet the deficit, either by reducing expenditures or by providing new sources of revenue.

The Government will not sell the securities held in the investment account, or other public property, except with the prior accord of the Fiscal Representative.

Article XI

The system of financial administration of the Republic of Haiti shall be governed by a special law of finance the project of which has been submitted to the Legislative Body.

Article XII

In order to assure the maintenance of public order, the monthly allocation for the Garde d’Haïti will be set aside preferentially by the [Page 678] National Bank from the funds remaining after deduction of any amounts which may be necessary to cover the service of the foreign debt and the expenses of the internal revenue collection including the internal revenue inspection service, and the sums thus set aside shall not be subject to withdrawal for any other purpose than the necessary expenses of the Garde. Any unexpended balance at the end of the fiscal year shall revert to the general fund of the treasury.

Article XIII

The Fiscal Representative shall maintain adequate records of all receipts and disbursements, which records shall be open to inspection and verification by the appropriate authorities. Monthly reports of his operations shall be submitted to the Secretary of State for Finance of Haiti and the Secretary of State of the United States.

Article XIV

The Haitian Government reserves the right to retire the bonds issued in accord with the Protocol of October 3, 1919, in advance of their due date; and the Government of the United States will not invoke the provisions of Article VI of the Protocol as an obstacle to such retirement before the expiration of the period of fifteen years fixed therein, provided that the Haitian Government is able to make an arrangement for this purpose satisfactory to the holders of the outstanding bonds.

In this case the provisions of this Protocol shall automatically become null and void and of no effect upon the completion of the refunding operation.

  • Dana G. Munro
  • A. Blanchet
  1. The treaty was rejected by the Haitian Congress on September 15, 1932, and for that reason was not sent to the United States Senate.