The Chargé in Haiti ( Chapin ) to the Secretary of State
[Received 1 p.m.]
71. My 70, August 26, 1 p.m. Copies of the contract as presented to the Haitian Legislature will be forwarded to the Department together with an English translation by air mail pouch tomorrow.
The text including figures is in general accord with information already sent to the Department. Refunding of the 1922 loan is nowhere mentioned although this operation is officially understood to be envisaged from the first installment. Security for the loan is based on a first lien on the customs revenue after the normal budget and to a certain extent upon all budgetary receipts. In case of default the contractor may exploit as a concession such producing projects as are completed under the contract. Disputes as to the interpretation of the contract will be settled as a last resort by the International Chamber of Commerce in Paris.
It is understood that quick action is expected and the contract will be sanctioned by the end of the week. Financial backers are not known [Page 672] and latest report is that some German capital, presumably Jewish, is involved. Payment of first installment must be made 3 months from date of notification of approval of contract.