638.5131/72: Telegram

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

28. Your 54, July 5, 1 p.m., and 57, July 6, 1 p.m. While the conditions mentioned may have offered the only satisfactory bases for the extension of the treaty and the avenant for 1 year, you may point out orally and informally that this Government has on at least two occasions exercised its good offices with American steamship companies to prevent an increase in freight rates from Haitian ports. The agreement to give at least 50 per cent of coffee exports to the French steamship companies may take away freight from American companies which have cooperated in maintaining a lower rate and at the same time may bring about an increase in freight rates which the American and other companies would most likely follow. Furthermore, giving the French 50 per cent of the coffee exports as well as all of the sacks used for coffee exports to France may well take the profit out of Haitian coffee exports in the event of an increase in freight rates and the price of coffee sacks.

You may also say that it is to be hoped that the Haitian Government will not be forced to make any commitment on gold service on the 1910 loan in view of the stand taken over the last 10 years and more.