339.11/141
The Chargé in the Dominican Republic (Atwood) to the Secretary of State
[Received December 15.]
Sir: Referring to the Department’s instruction No. 489 of December 2, 1936 (File No. 339.11/140), in relation to a memorandum dated May 4, 1936,61 concerning claims and cases in the nature of claims against the Dominican Government, which was handed to the Dominican Minister at Washington, and directing me to discuss informally with the appropriate Dominican authorities the matter of the Dominican floating debt and endeavor to ascertain when payment of approved claims thereunder might be expected, I have the honor to report that I had a conversation this morning with the Secretary for Foreign Affairs on the subject.
I asked the Secretary for Foreign Affairs whether the proposed extension of six months from January 1, 1937, during which the so-called “analyses” of approved claims against the Dominican Government might be presented for examination and exchange for “certificates of credit,” as reported in my despatch No. 3661 of December 7, 1936, meant that the Dominican Government had no intention of making any payments on its floating debt until all such claims were presented and duly exchanged for “certificates of credit.” Señor Bonetti Burgos said that this was not the intention of the Dominican Government, but he was unable to state definitely when payments might begin to be made. I then asked him if any steps were being taken by the Dominican Government to pay claims covered by former “certificates of analyses” that had already been presented to the Commission created by Law No. 1096 of April 29, 1936, and exchanged for “certificates of credit.” Señor Bonetti Burgos said that so far as he knew no such action had as yet been taken by the Dominican Government.
Referring to the existing balance of $375,000 in the appropriation of $600,000 made in the budget for 1936 for payment of floating debt claims against the Dominican Government, I asked Señor Bonetti Burgos whether it was the intention of the Dominican Government to utilize that sum for the payment of floating debt claims in 1936 or whether this sum would be carried forward to the 1937 fiscal year. Señor Bonetti Burgos replied that he was not in a position to answer this question.
With respect to the budget for the fiscal year 1937, commencing January 1, 1937, I said to Señor Bonetti Burgos that I had noted that the [Page 478] appropriation in the budget for the payment of floating debt claims had been reduced to $337,800 and that the appropriation for the Treasury Department had been increased for 1937 in the amount of $419,000. I asked Señor Bonetti Burgos whether he thought that this $312,200 reduction in the appropriation for payment of floating debt claims might be met from the increased Treasury Department appropriation. Señor Bonetti Burgos replied that he had not as yet examined the Dominican budget for 1937, but that he would look into the matter and give me further information on the subject at a later date.
In concluding our conversation Señor Bonetti Burgos assured me that the main reason for extending for a period of six months the time in which holders of admitted claims against the Dominican Government could present them for examination and exchange for “certificates of credit,” was solely in order that persons residing outside the Republic might have ample time to exchange their approved claims for new “certificates of credit.”
Despite Señor Bonetti Burgos’ assurances regarding the intention of the Dominican Government to begin payment of floating debt claims at an early date, I gathered the impression that he was not at all well informed on the subject. It is also felt that the Dominican Government’s purpose in extending for a further period of six months the time during which approved claims may be presented for examination and exchange for “certificates of credit” is to defer making payments on its floating debt as long as possible, as it is reported that the Dominican Treasury is faced with a large deficit for 1936. From past experience, it would appear evident that any unexpended balance in the Dominican Treasury chargeable to floating debt payments in 1936 will be used to finance the reported deficit.
Respectfully yours,
- Neither printed.↩