838.516/359
Memorandum by the Assistant Chief of the Division of Latin American Affairs (McGurk)
| Conversation: | Mr. Welles |
| Mr. Sidney de la Rue | |
| Mr. McGurk |
Mr. de la Rue stated that he had been conferring with the National City Bank officials during the past week and it had been practically agreed that the National City would go ahead with the contract as recently sanctioned by the Haitian legislature; that the Bank had the opinion of former Attorney General Mitchell that the stock sale plan offered adequate security and that they would proceed on that basis. Mr. de la Rue then pointed out that as the Law of Sanction, which also authorized modifications, had been included as an article in the contract itself it would be necessary to re-draft the contract leaving out the article and enact a separate Law of Sanction authorizing the modifications. Mr. de la Rue said that he had informed President Vincent of this and that the President understood the situation and would carry out this proposal, as he was very anxious to proceed and particularly to promulgate the Law of Sanction and [Page 722] the contract in order to quiet the members of the opposition who are endeavoring to embarrass the President by spreading information to the effect that although the legislature had approved the bank purchase the President could not carry it through. Mr. de la Rue stated that he anticipated there would be some delay in ironing out the details and in having an audit made before the final turn-over and that it will probably be July or August before all these arrangements have been completed. Mr. Welles said that he was pleased to hear this as he would be glad to see the matter delayed until the autumn. Mr. de la Rue stated that Mr. Lancaster would be in Washington tomorrow with the English drafts and that he would be glad if Mr. Welles would see Mr. Lancaster and himself. Mr. Welles stated that he would be glad to see Mr. de la Rue and Mr. Lancaster tomorrow, Wednesday, at a time to be arranged by Mr. de la Rue.
Mr. de la Rue then outlined political developments with respect to the possibility of the President having the constitution amended to insure his election in 1936, and also the Hibbert affair.19
Mr. de la Rue stated that the recent law aimed at Japanese dumping had been enacted by the Haitian legislature and that he thought it would be an excellent thing. He then stated a very interesting proposal made by the Japanese recently in Port au Prince. It seems that during a recent visit of Japanese representatives to Haiti they informed the Minister of Finance and Commerce that they were willing to purchase up to $250,000 worth of Haitian products in order to obtain the minimum tariff. (Under a recent law enacted in Haiti those countries not purchasing 1% or more of Haitian products are subject to a surcharge of 100% on the Haitian customs tariff.) The Minister replied that he was not interested. The Japanese thereupon agreed to raise the amount to $350,000 and the Minister replied that he would be willing to accept the proposal for the purchase by the Japanese of 50% of the cotton crop and 50% of the coffee crop. The Japanese replied that they would be willing to purchase upwards of $350,000 worth of cotton during the coming year and on the basis of a sliding scale increase their purchases thereafter, and at the end of three years would be willing to consider the purchase of a quantity of coffee, the amount of which was not stated. Mr. de la Rue said that it was his idea that the Japanese intended to set themselves up as middle men in the coffee and cotton trade, but he had no idea just why a period of three years time should be specified as the Japanese evidently had some idea in mind which they did not disclose.
- Lucien Hibbert, the Minister for Foreign Affairs, had resigned in March because of differences with the President.↩