838.516/344
The Chargé in Haiti (Chapin) to the Secretary of State
[Received April 4.]
Sir: I have the honor to refer to my despatch No. 579, of March 29, 1935, regarding the Bank Contract, and to enclose for the Department’s information a copy of the letter of March 2912 from Mr. Lancaster to Mr. Walter Voorhies, of the Banque Nationale.
Following receipt of this letter this morning, Mr. Voorhies conferred with Mr. de la Rue and myself, and it was decided that it was inadvisable to delay communicating with President Vincent on the subject, particularly in view of Mr. Lancaster’s statement that the substance had already been made known to Mr. Blanchet and presumably by him reported to the President. Accordingly, Mr. Voorhies gave a copy of this letter to President Vincent this morning. Mr. Voorhies has just telephoned me to say that he went over the letter in some detail with the President. The latter, Mr. Voorhies stated, was greatly disappointed at what he termed the legalistic attitude of the Bank, and while at first manifestly upset, appeared later to collect himself. The President informed Mr. Voorhies, in response to the latter’s question, that he had in fact received some intimation from Blanchet as to certain difficulties, but at the end of the interview the President expressed confidence at the probability that a solution of the difficulties might be found; a solution which, the President added, he trusted would not be too long delayed.
It is of course possible that the President was indeed informed by Blanchet in full with regard to the Bank’s attitude as developed by Mr. Lancaster to Blanchet, and that in spite of this, he has deliberately proceeded with his program of referring the law of sanction through the Haitian legislature, in an attempt to present another fait accompli.
There is also enclosed a copy, furnished me by the Fiscal Representative’s office, of the law of sanction13 as passed by the Haitian legislature. This copy was secured only this morning, and I have not had an opportunity to examine it fully. I am informed that a first cursory [Page 720] examination by the Fiscal Representative’s office shows that there are a considerable number of small changes in wording from the original French text of the May 12 contract. Mr. de la Rue states that a detailed analysis is being prepared by his office, and copies of this, together with other copies of the law of sanction as passed, will be forwarded to the Department as soon as they become available.
April 2.
Since writing the above despatch, I have had a further talk with Mr. de la Rue, who informs me that despite assurances from the President and his Ministers to the effect that the changes embodied in the law of sanction aimed only at verbal clarification, and did not affect the substance of the contract of May 12—assurances which, I may add, were given as late as yesterday morning—it appears that this is not the case. It is understood that a copy of the old contract, with the changes embodied in the bill of sanction noted thereon, is being forwarded under cover of a personal letter14 to Mr. Edwin Wilson.15 In view of the shortness of time before the air mail leaves, I shall only mention some of the principal changes, particularly one stipulating that the Bank shall not sell in the event of default on the Government notes, the stock of the Banque held in pledge for less than the book value of the shares. Other changes believed important relate to the substitution of “appointment” instead of “election” of the Directors; the omission of the clause relative to the Directors’ terms of office; and the omission in the release clause of the stockholders and the concession owners.
Respectfully yours,