838.516/280: Telegram

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

41. Department’s telegram No. 21, April 28, 3 p.m. and 22, April 30, 1 p.m.69 The Foreign Minister last night handed me drafts of [Page 354]the two letters referred to in Department’s telegram No. 21 together with an additional memorandum summarizing steps they propose to take to protect the bondholders, which memorandum will also be sent to the Fiscal Agents. I have forwarded these documents by air mail this morning and they should reach the Department Monday morning. It will be noted that the letter (marked A) which is the one to be referred to in the treaty, does not set forth specifically the powers listed in paragraph 2 of Department’s No. 21. Hibbert explains that these powers are contained in the bank contract (a procedure not perhaps envisaged by the Department at the time telegram No. 21 was sent) which contract as stated in Department’s telegram No. 22, April 30, 1 p.m., with the bank’s concession and contracts will constitute the new organic bank law as the letter engages the Haitian Government not to change the terms of the contract. Hibbert does not see the need of having these powers again set forth in the letter but both he and Laleau have assured me that if the Department prefers that this be done they will be glad to make the necessary alterations.

Lancaster70 is arriving with De la Rue on May 7th and they hope here to have the contract signed immediately and sent with the Law of Sanction to the Legislature for enactment if possible before the end of next week. In the meantime, if the Department will cable me its decision with regard to the draft letters and memorandum we can then be prepared to proceed with the exchange of notes and signing of the treaty as soon as the Legislature has passed the latter. It might be well to send me by air mail drafts of replies which will be made to Haitian notes when approved.

Armour
  1. Telegram in two sections.
  2. Telegram No. 22 not printed.
  3. William W. Lancaster, Counsel for the National City Bank.