838.51/3137: Telegram

The Secretary of State to the Minister in Haiti (Gordon)

10. For Gordon from Welles. I have informed Blanchet16 that this Government stands ready to sign the treaty, with certain minor modifications, as and when the Haitian Government is ready, so that the determination as to whether it desires to sign the proposed new treaty at this time rests with the Haitian Government. At the same time, I told Blanchet that I agreed with de la Rue’s opinion that signature of the new treaty at this particular juncture might make more difficult the successful outcome of his negotiations, since some prospective lenders might become unnecessarily concerned over the new arrangement, even though aware of its general outlines, which I assume de la Rue is conveying to them. I understand that de la Rue has advised the President, Blanchet and other members of the Haitian Government in this sense.

The principal reason for our belief in the advisability of the continuance of the Accord this year arises from the view that Haitian credit and therefore Haiti’s chances of securing a loan on favorable terms at some future date would be improved if Haiti could during the current year show the financial world that it can manage satisfactorily its finances. Support is lent to this belief by the favorable reaction in the New York market to the loan operations of certain foreign governments which have maintained their finances in good shape throughout the depression. I continue to think this point of [Page 606] view important and suggest you bring it to the attention of the President if this subject is discussed at your meeting. [Welles.]

  1. Albert Blanchet, Haitian Minister in the United States.