838.51/2528

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

No. 228

Sir: With reference to the Department’s telegram No. 66 of October 1, 3 p.m.,32 there is transmitted herewith the text of a note which you are instructed, unless you perceive objection, to address to the Minister for Foreign Affairs in reply to his note of September 26, 1932, forwarded with your despatch No. 503.33 If you have any comment in regard to this note, or suggestion as to change in the text thereof, please cable promptly.

You are authorized to agree to publication of the following: (a) your note of September 23; (b) the note of the Minister of Foreign Affairs dated September 26; and (c) the note which you are now instructed to communicate to the Foreign Office. There appears to be no reason for publication of the note you sent the Minister embodying the Department’s telegram No. 63 of September 23, 5 p.m., regarding Haitianization of the Department of the South, since this question is adequately covered in the note you are now to communicate to him.

Please advise by telegraph in advance of the date when the notes will be made public in Haiti so that arrangements for simultaneous release may be made here.

Very truly yours,

For the Secretary of State:
Francis White
[Page 689]
[Enclosure]

Text of Note to the Haitian Government34

With reference to Your Excellency’s note of September 26, 1932, I am instructed by my Government to reply as follows:

Your Excellency appears to have interpreted my note dated September 23, 1932, as implying that the Government of the United States, in view of the action of the Haitian Legislature in declining ratification of the treaty signed at Port au Prince on September 3, 1932, intends to stop any further Haitianization of the Garde. I can assure Your Excellency that any such interpretation is entirely unwarranted. Arrangements are now being carried forward for the Haitianization of the Department of the South by December 31, 1932, in accordance with plans formulated early this year by the Commander of the Garde. The process of Haitianization of the Garde, in accordance with the treaty of 1915 and following out the recommendations of the President’s Commission for the Study and Review of Conditions in the Republic of Haiti, will in any case be carried forward. The accelerated rate of Haitianization of the Garde provided in Protocol A of the new treaty, however, being a part of the whole program of that treaty which hangs together and must be carried out as a whole, would of course depend for its execution upon the placing in effect of the treaty.

It appears to my Government that it would be helpful to review at this time certain points in connection with the treaty of September 3, 1932, and in that connection to expand somewhat the views expressed in my note of September 23. As stated in that note, my Government views this treaty as the logical culmination of the recommendations of the President’s Commission. The United States has agreed, upon the ratification of this treaty, to turn over the complete command of the Haitian Constabulary to Haitian officers by December 31, 1934, instead of in May, 1936, as would be the case under the treaty of 1915 now in force; to withdraw the Marine Brigade, beginning such withdrawal not later than December 31, 1934; and to turn over the internal revenue service to Haitian control on December 31, 1934. The new agreement furthermore specifically limits and defines the powers of financial administration arising out of existing agreements which obligate both Governments, as will be pointed out in detail hereinafter.

My Government has noted with interest the report of the special committee appointed by the Haitian Legislature to examine the treaty of September 3, 1932. It feels that there has apparently been a failure [Page 690] to understand the real nature of the treaty. The special committee’s report unfortunately contains certain errors which have evidently been the cause of a misunderstanding of the situation. For instance, the report states that the powers of the Fiscal Representative under Protocol B of the new treaty are more extensive than those of the Financial Adviser-General Receiver under the treaty of 1915 now in force. As a matter of fact the very opposite is true and the powers of the Fiscal Representative, as defined and limited in the new treaty, are substantially less than those conferred on the Financial Adviser-General Receiver by the Treaty of 1915. Under the treaty of 1915 the Financial Adviser-General Receiver was given and has exercised exceedingly broad powers over all phases of the Haitian Government’s financial organization, collecting all revenues, acting as custodian of all funds, and controlling the allocation of funds among the administrative departments. Under the new treaty the Fiscal Representative will collect the customs revenues and merely supervise the internal revenue service. He will have custody only of the funds necessary for the payment of the expenses of revenue collection and for the service of the foreign debt, and his powers regarding the budget are limited to those necessary to see that expenses are kept within the Government’s revenues. Such powers as he will exercise are clearly specified and limited, so that there is no broad general grant of power as in the 1915 treaty.

Furthermore, the special committee’s report states that the new treaty may be continued in force indefinitely and subject only to the power of the United States to put an end to it. This is, of course, entirely erroneous. As pointed out hereinabove the treaty provides for the complete Haitianization of the Garde by December 31, 1934, and the beginning of the withdrawal of the Marine Brigade by that date. Protocol B of the treaty, dealing with financial administration, provides in Article I that the powers of the Fiscal Representative shall be exercised only “until the total retirement or refunding of all bonds issued in accord with the Protocol of October 3, 1919.” Article XIV of Protocol B reserves to the Haitian Government the right to retire the bonds in advance of their due date subject to an arrangement satisfactory to the holders of the outstanding bonds, and states that in this case the provisions of the protocol “shall automatically become null and void and of no effect upon the completion of the refunding operation.” In other words, these powers of financial administration exercised by virtue of existing obligations entered into by both Governments to insure adequately the interest and amortization of the Haitian bonds, will cease and determine upon the retirement or refunding of the bonds. It has been estimated by the Financial Adviser that the bonds issued in [Page 691] accord with the Protocol of October 3, 1919, will be completely amortized in 1943.

It is understood that there has been criticism in Haiti of the reference in the exchange of notes between the American Minister and the Haitian Government to the possibility that serious disturbances or other difficulties in Haiti now unforeseen might arise to prevent the carrying out of the program for the Haitianization of the Garde. In this connection I am instructed to state that it is the desire and definite intention of the United States Government, upon the entrance into force of this treaty, to carry out in full the program set forth in the agreement for the Haitianization of the Garde. The possibility that serious disturbances or other difficulties now unforeseen might prevent its execution was contemplated only in case a serious emergency might arise, now entirely unforeseeable, which might make it advisable in the interest of both Governments to delay temporarily the completion of the program. Reference to this possibility was made in the exchange of notes so that, if such an emergency should arise and prevent temporarily the completion of the program, there could be no question of bad faith imputed to either Government. However, so far as can be foreseen at present there is no reason to expect that any such serious emergency will arise in the future and, as stated hereinabove, it is the desire and definite intention of the Government of the United States, upon ratification of the treaty, to carry out the program by the dates set forth therein.

In my note of September 23 I referred to the interest my Government had taken in President Vincent’s forceful statement of September 16, 1932, regarding the negotiation of the new treaty and the advantages accruing to Haiti under it. In that statement President Vincent referred to the obligations assumed by both Governments in the past relating to financial questions in Haiti. As was pointed out in my note, it is, of course, clear that in negotiating this new treaty the freedom of action of both Governments was necessarily limited by the existence of definite obligations subscribed to by previous governments in Haiti and the United States which must be respected and carried out. Your Excellency’s note of September 26 referring to these financial questions, suggests an agreement giving a form of adequate protection “of an exclusively technical character.” My Government feels that Protocol B of the new treaty, negotiated in accord with the Haitian Government, is in fact such an agreement. As pointed out above, this Protocol gives to the Fiscal Representative powers substantially less than those conferred on the Financial Adviser-General Receiver under the treaty of 1915 and, in the view of my Government, it contains the maximum concessions [Page 692] in this direction consistent with the obligations of existing agreements assumed by both Governments.

The Government of the United States desires to withdraw its forces from Haitian territory at the earliest practicable moment. It desires to limit its responsibilities in connection with Haitian financial matters to the minimum required by the existing obligations undertaken by both Governments. It sincerely hopes that the entire program set out in the treaty of September 3, 1932, affecting the Garde, the Marine Brigade and Financial Administration, which was drawn up with the foregoing objectives in mind, may be put into force through the ratification of that treaty. It is, of course, obvious that this program hangs together and must be carried out as a whole and that it cannot be put into effect piecemeal.

  1. Not printed.
  2. Despatch not printed; for text of Haitian note of September 26, see Department of State, Press Releases, October 15, 1932, p. 217.
  3. Addressed to the Haitian Minister for Foreign Affairs, October 7, 1932.