838.51/2597: Telegram
The Secretary of State to the Minister in Haiti (Armour)
Washington, February 25,
1933—noon.
8. Your despatch No. 76, February 16.
- 1.
- What is the status of the negotiations with the National City Bank for the proposed bank credit?
- 2.
- Have you received as yet from the Haitian Government their proposed modifications for the agreement concerning financial control?
- 3.
- In considering the Financial Adviser’s latest recommendation to the effect that an immediate advance of $100,000 should be authorized from cash reserves to start work on the Artibonite irrigation project, there are points which the Department would like to have cleared up in order to give appropriate consideration to the matter. There have been various proposals advanced recently and the situation seems somewhat confused. For instance, the postscript to the Financial Adviser’s letter to you dated February 737 would seem to indicate that he then believed that in the absence of a contract with one of the fruit companies it would be useless to attempt to go ahead with the irrigation project. However, it would seem from the Financial Adviser’s letter to you of February 16 that, despite the failure of the Standard Fruit Company to complete its proposed contract with the Government, the Financial Adviser nevertheless believes that it would be advisable to go ahead with this project.
- 4.
- It will be recalled that in the various proposals put before the Department it was at one time felt that the irrigation project would require the expenditure of approximately $2,000,000. Later the proposal was made that $1,000,000 be spent on this work through obtaining a revolving fund credit of $400,000. It is now stated that a total expenditure of $400,000 on the irrigation work would be practicable and useful to Haiti.
- 5.
- The Financial Adviser’s memorandum to you of February 14,37 enclosed with your No. 76, in recommending the immediate advance from cash reserves of $100,000 to begin the irrigation work, states in effect that in case the proposed bank credit should not materialize and in the event surplus revenues are not available to continue the work, “B” bonds should be exchanged for “A” bonds, thus diverting the service charges on the “B” bonds to the expenses of the irrigation work. In case this should be done, what would be the effect on extending the time for total amortization of the “A” bonds?
- 6.
- Is it contemplated that any of this proposed $100,000 advance would be used for other public works than the Artibonite project? In case the $400,000 credit is obtained from the bank, would it be contemplated to use any part of it for public works other than the Artibonite project?
- 7.
- What is total amount cash reserves immediately available and on time deposit, exclusive of bonds held in investment account?
- 8.
- In order that the Department can give appropriate consideration to this matter it is felt that the Financial Adviser should submit to you [Page 730] for forwarding to the Department by air mail a complete description of the proposal now recommended, giving information regarding the points raised in paragraphs 3 to 7 hereinabove, and any further details which may be regarded as essential.
Stimson