The Minister in the Dominican Republic (Schoenfeld) to the Secretary of State

No. 845

Sir: Referring to my despatch No. 840 of March 8, 1933,32 in further relation to the recent formation of an Advisory Committee to study the question of the reduction of the amortization rate on the Dominican Government’s external debt, I have the honor to enclose for the Department’s strictly confidential information copy of a memorandum by the Financial Adviser to the Dominican Government on this subject.32

I understand from Mr. Dunn that the President now expects to take a final decision regarding recognition of the Advisory Committee in the course of the next few days. Mr. Dunn tells me that he has been anxious to secure early action by the President in this sense in order that the Committee may proceed with its studies with explicit assurance of the Dominican Government’s cooperation. It appears that there has been difficulty oil the part of the Dominican Government in understanding that the establishment of official contact with the Advisory Committee does not imply an immediate decision to enact the amendment to the Emergency Law referred to in the enclosure to my despatch No. 827 of February 28, and that formal recognition of the Committee formed at this Government’s request to the Fiscal Agents is now the impulse required by the Committee to begin its work.

It appears from the enclosed memorandum that the Dominican Government desires to be reassured on the point of the use of the reserve in the hands of the Special Agent for the Emergency for [Page 628] meeting expenses of the Committee. I have, naturally, been unable to express myself in any way as to the idea that this reserve should be used for this purpose, since this would appear to be a matter regarding which the bondholders themselves must in the last analysis decide.

Respectfully yours,

H. F. Arthur Schoenfeld
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