839.51/4047: Telegram

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

3. My telegram No. 2, January 16, noon. In response to my inquiry Minister of Foreign Affairs informed me this afternoon that Dominican Government was awaiting advice from Washington as to appointment of subcommittee of Foreign Bondholders Protective Council before sending representatives to begin negotiations on Dominican debt problem and that it was anxious to begin these negotiations as soon as possible.

With reference to remittance of surplus in Emergency Fund for amortization, however, Minister of Foreign Affairs informed me that the President of the Dominican Republic intended to “fight this matter to the last” making it clear that no remittance will be made pending the result of negotiations above mentioned. This disavowal by the President of the assurances of the Minister of Foreign Affairs as reported in my telegram cited was foreshadowed especially in my despatch No. 1375, January 3 and previous correspondence.

Minister of Foreign Affairs informed me also that the President had disapproved his suggestion of sending me a clarifying note on the ground that what is now needed on the part of the Dominican Government is “Action” rather than diplomatic correspondence. He added that the President and the Dominican Government had taken my oral statement and memorandum of January 16 as a friendly intimation that action was desired. I assured the Minister that this understanding was quite correct and that it seemed to me highly desirable for the Dominican Government to expedite their proposed action in respect of the negotiations.

I did not, however, press the Minister further on the subject of remittance from surplus for amortization. Does the Department desire me to press further for this remittance? I consider it desirable to do so and in more positive terms than have been employed thus far.

Schoenfeld