838.51/3236
The Acting Secretary of
State to the Minister in Haiti (
Gordon
)
No. 438
Washington
, December 16, 1936.
Sir: The Department has received your despatch
No. 350, of November 28, 1936, together with its enclosures, and desires
to express its sincere appreciation of the thoughtful and penetrating
analysis which you have made of the Haitian counter project.
Your suggestions have been examined with great attention, and the
Department finds itself in general agreement with them. Upon some
consideration, and after several protracted consultations with the
Fiscal Representative, the Department has drafted a reply to the note of
November 26, from the Haitian Minister of Foreign Affairs, with its
enclosure, a Haitian counter project to the draft note forming part of
the proposed protocol.
The Department’s reply, enclosed with this despatch, consists of a note
with one enclosure and is accompanied by five aide-mémoires. It is hoped that with certain exceptions noted
in this instruction, all outstanding points of disagreement have been
covered adequately, but the Department would be glad to consider any
further suggestions, either as to substance or procedure, that you may
care to advance.
More specifically, the Haitian contentions with respect to Articles 8 and
10 of the Department’s draft note are dealt with in the note of reply.
As respects the three projects of law, you are authorized in your
discretion to amplify orally to the Minister of Foreign Affairs when
presenting the reply, the Department’s fundamental objections to the
proposed Haitian legislation. It is suggested that you may care to touch
upon the proposed “Service of Control of Receipts and Expenditures of
the Republic”, pointing out that many of the duties to be performed by
this proposed service would appear to be already carried out at present
by the technical branches of the Ministry for Finance. It is the
Department’s understanding that according to present practice, orders
for payment originating in the various Ministries are approved there by
the competent authorities, and then passed through, with certain
exceptions, the Ministry for Finance, from which Ministry they are in
turn referred to the Fiscal Representative’s Office for further
pre-audit and accounting. Consequently, the introduction of such a new
service as appears contemplated would seem to constitute, with the
service which the Haitian Government admits will be necessarily
instituted in the Government side of the Bank, and which is in effect
the same service as that at present performed by the Office of the
Fiscal Representative, a triplication rather than a duplication of
accounting in many instances. You may also care to develop at some
length the total inadequacy of the personnel and the salaries to be paid
such personnel, which the Haitian Government [Page 647] had in mind as sufficient for the Government side
of the Bank, pointing out that even according to their own ideas, such a
personnel could scarcely cope with the duties and responsibilities to
which this organization must respond. The Department fully concurs in
your view that this organization must be allocated the global sum
resulting from the 2 per cent levy, to be disbursed as directed by the
appropriate responsible officers of the Bank.
The Department hopes that the Haitian Government will, upon further
consideration, agree with this Government’s view of what constitutes a
satisfactory plan for the organization of the Government side of the
Bank, as set forth in the enclosure to its reply, and that as a
consequence the greater part of the objectionable features incorporated
in the first draft legislation will thus automatically disappear.
Likewise, you are authorized, should you deem it useful, to state orally
to the Minister of Foreign Affairs that the American Government has
examined Article 11 of the draft decree-law No. 1, and believes that in
view of the insecurity of prompt communication within the Republic of
Haiti and the amount of bookkeeping involved, it is of doubtful utility
to insert a proviso that the Minister for Finance within the first
fifteen days of each month should be required to submit a statement of
the condition of the Treasury with regard to expenditures as respects
the twelve equal monthly budgetary allotments (douzièmes) and extraordinary credits. You may also mention in
this connection that not long ago the Fiscal Representative upon the
request of the then Minister for Finance agreed to the inauguration of a
somewhat similar scheme, but that after a trial of several months this
scheme was dropped by mutual consent as being impracticable.
With respect to aide-mémoire No. 1A enclosed with
this instruction, the Department with the entire concurrence of the
Fiscal Representative has agreed to the fixing of a maximum for the
Bank’s commission for its Treasury and other services at 1,000,000
gourdes. The Haitian proposed minimum of 600,000 gourdes is, of course,
unacceptable to this Government since it is inadequate. It may be
remarked in passing that the minimum has been fixed at 800,000 gourdes
or $160,000, based upon 2 per cent of a 40,000,000 gourde budget with a
practical division of $110,000 for the running of the Government side of
the Bank and $50,000 for the purely Treasury services of the Bank as
actually rendered by the institution at present.
Although the Department has given consideration to your remarks as to the
possible effects upon the future smooth functioning of the Bank by the
Haitian inclusion of the Bank’s two per cent commission in the budget as
provided in Article 8 (page 3) of the Haitian draft decree law No. 1, it
does not feel that it could properly oppose any objection to the Haitian
desire on this point since a similar provision was contained in Article
XVI of the Accord of August 7, 1933.
[Page 648]
It is believed that the other aide-mémoires as
drafted by the Department require little or no explanation. Mr. de la
Rue has been consulted with respect to a possible reduction in the
period necessary after the signature of the protocol before the date
upon which it is to go into effect, and the aide-mémoire on this subject, which is based upon his ideas,
has been approved by him.
The plan of organization which is transmitted as an enclosure to the
reply has been drafted by Mr. de la Rue personally in the Department
upon the documents received from Mr. Pixley. The Department has
carefully studied this draft plan, and while it, of course, cannot
pretend to pass with knowledge upon the more technical details of the
proposed organization, it believes that on the whole the plan should
provide adequate security for the service of the 1922 loan. The
Department has accordingly approved this plan in principle.
With respect to the statement on page 1, line 3, of the list of salaries
of personnel attached to the memorandum enclosed with our draft note,
that the “Government rendered a decision that the Fiscal Representative
and the Deputy Fiscal Representative, et cetera,” Mr. de la Rue has
assured the Department that this statement is substantiated by a letter
from Mr. Châtelain, then Minister of Foreign Affairs, to Mr. de la Rue
to the effect that de la Rue, Pixley, Williams and Waterschoodt should
continue to receive their present appointments and allowances and in
addition should receive their fees as directors of the Bank. Mr. de la
Rue affirms that this statement did not carry any limitations to the
effect that these salaries may be reduced upon the termination of the
United States financial control in Haiti, and that it was undertaken to
carry into effect the provisions of Article V of the Bank Contract. It
may be explained in passing that until this letter was written it was
obviously impossible to pay any of the directors’ fees as foreseen in
Article V. Mr. de la Rue informed the Department further that he has
requested Mr. Pixley to obtain this letter and to communicate it to you.
In the improbable event that it should not in fact substantiate the
statement contained in the Department’s memorandum mentioned at the
outset of this paragraph, you are requested to cable the Department with
such recommendations as you may see fit to make as respects a revision
of the list of salaries attached to the memorandum.
Finally, you may care to develop the thought expressed in the last
paragraph of the Department’s draft reply, pointing out the many
instances in recent years where the United States Government has been
only too glad to attempt to meet Haitian aspirations, by relinquishing
its control of certain Haitian administrative and other services in
advance of the date set for the expiration of this control. You may
desire to add that in the case of this protocol and attached note, the
United States Government regrets that its responsibilities towards [Page 649] American citizens who have
invested in Haitian bonds precludes this Government from agreeing to the
termination of the present system of financial control in Haiti unless
the rights of these bondholders are adequately safeguarded.
Very truly yours,
[Enclosure 1]
Draft of Note To Be Submitted to the Haitian
Minister for Foreign Affairs
Excellency: I have the honor to inform Your
Excellency that the Government of the United States of America has
examined with great care Your Excellency’s note of November 26,
together with its enclosure, and three draft decree laws, all
bearing on the subject of the proposed protocol and accompanying
note abrogating the protocol of 1919, the accord of August 7, 1933,
and terminating United States financial control in Haiti.
The United States Government is happy to take note of the fact that
the Haitian Government accepts the text of the proposed draft
protocol as delivered by me to Your Excellency on November 18, 1936.
It is also happy that Your Excellency’s note of November 26 would
appear to indicate that the two Governments are in substantial
agreement as to the main points to be covered in the proposed note
attached to and forming part of the aforementioned protocol. The few
points at issue are believed to be minor ones not involving serious
difficulties in reaching a final mutual agreement. My Government
recalls in this connection that when the question first arose in
1934 as to the purchase by the Haitian Government of the National
Bank of the Republic of Haiti and the proposed termination of United
States financial control in Haiti through the conclusion of an
agreement abrogating the Treaty of 1915, the Protocol of 1919, and
the accord of August 7, 1933, it was the clear intention, whether
directly expressed in words or indirectly understood between the
responsible officials of the two Governments, to transfer to the
National Bank of the Republic of Haiti under its new management the
essential services of the office of the Fiscal Representative as
then organized, under suitable agreements which would protect the
rights of the holders of bonds of the 1922 Haitian loans, in the
spirit of the pledges and assurances given in the past to these
bondholders by both the Haitian and the United States
Governments.
Although there have been changes on both sides among those who
participated in the negotiations in 1934, this clear intention has
remained unaltered. Consequently, when several weeks ago the Haitian
Government formally expressed its desire to proceed with the
conclusion [Page 650] of an agreement
to terminate United States financial control in Haiti, my Government
was only too happy to comply with this request. However, with the
original intention referred to above in mind, my Government, in
drawing up on the basis of the original negotiations the text of the
note attached to the draft protocol submitted to Your Excellency by
this Legation on November 18, felt that it was necessary to reduce
to writing certain of the understandings whose existence was no less
real because of their being oral. The aim of the United States
Government, which it feels sure the Haitian Government shares, has
been to provide an adequate and workable agreement which would as
far as possible obviate any unfortunate controversies as to the
exact nature of these understandings, which might arise later to
obscure the happy relations that now obtain between the two
countries.
More specifically, with respect to the first point raised in Your
Excellency’s note of November 26, the United States Government notes
that the Haitian Government, although apparently desiring a change
in draft Article 8 of the proposed note, states
“the formal engagement that it (the Haitian
Government) takes not to open supplementary or extraordinary
credits unless available funds exist is sufficiently clear
and explicit, and the control of the Bank for the
safeguarding of the rights of the bondholders is amply
guaranteed by the fact that it could refuse to issue checks
against these credits in case there were no available
funds”.
My Government is pleased that the Haitian Government
should recognize the necessity of safeguarding the rights of the
bondholders in this connection, but feels that the suggested text of
Article 8 as submitted in its draft of November 18, is much to be
preferred as being more in harmony with accepted rules of fiscal
practice. If funds do not exist for supplementary or extraordinary
credits, the Haitian Government of course will desire to know this
before embarrassing itself by opening such credits.
My Government is happy to note that the Haitian Government, in its
suggested counter project, retains the essential phrase of Article
10, which appears to be supported by Article 4 of the draft decree
law on the “Special Service of Inspection of the Bank”, namely,
“It (the Bank) shall also have the duty of
indicating to the Secretary of State for Finance any error
which may occur in an order addressed to it for payment, or
in the vouchers which accompany that order”.
Your Excellency will agree, I am sure, that such a
proviso in itself requires the installation in the Bank of a service
of “pre-audit of Government payments” and a service of “public
accounting”, as well as a service of “issuance of checks”, which is
precisely what the first [Page 651]
sentence of Article 10 of the proposed note as submitted by my
Government provides for. Therefore, although my Government is
desirous of acceding to every reasonable request of the Haitian
Government, it feels that it cannot defer to the desires of the
Haitian Government with respect to the first sentence of Article
10.
With respect to the enactment of the draft laws which are to
implement the proposed protocol and attached note, the Government of
the United States regrets that it cannot recede from its original
contention that in order to fulfill the purposes of this protocol,
such draft laws should be enacted by the Haitian legislature either
in regular or extraordinary session.
The United States Government has examined with interest the three
copies of draft Haitian projects of law which Your Excellency was
good enough to submit to the Legation for its information. It cannot
disguise its surprise that these draft decree-laws appear to be
based upon certain concepts which are completely at variance with
those which, as set forth in the second paragraph of this note, my
Government has felt sure were mutually entertained by both
Governments when the 1934 conversations were inaugurated, and upon
which my Government has consistently predicated its willingness to
terminate United States financial control in Haiti.
It will consequently be evident to Your Excellency that since the
basic structure of these draft decree-laws is so out of keeping with
my Government’s views it would be useless to attempt any analysis in
detail of this draft legislation, although elsewhere my Government
has felt it necessary to refer to certain of the more salient
provisions and omissions which have been picked out as illustrative
of the unsatisfactory nature of the draft legislation as a
whole.
In an endeavor to advance the negotiations to an early conclusion, my
Government has taken the opportunity to prepare a memorandum setting
forth in general the nature and scope of the organization of the
Government side of the Bank, together with a list of personnel by
official functions, and the salaries to be paid to such personnel,
which I enclose herewith for the information of Your Excellency.
This general plan of organization would appear to my Government to
safeguard satisfactorily the interests of the bondholders of the
1922 loan. It must be emphasized, however, that this list of
personnel does not pretend to be conclusive, and occasion may arise
even before the plan may be put into effect when it may be necessary
substantially to modify this list.
My Government feels confident that the Haitian Government will find
that this draft plan forms a suitable basis for the legislation to
be enacted which is necessary in order to proceed with the proposed
protocol and accompanying note. It will be happy to receive at an
early date such further proposals and draft legislation as the
Haitian [Page 652] Government may
care to submit, and will devote to them its sympathetic and careful
consideration.
Finally, my Government wishes to advance the earnest belief that it
has already gone a long way in its desire to meet the aspirations of
Haiti in obtaining the termination of United States financial
control, and that any important relaxation of the terms of the
proposed protocol and attached note would probably render the
proposed plan unworkable in practice and insecure as respects the
rights of the bondholders of the 1922 loan.
Accept, Excellency, etc.
[Enclosure 2]
Draft of Memorandum To Be Enclosed With Note to
the Haitian Minister for Foreign Affairs
The plan of organization of the Bank as decided upon at the meeting
held for that purpose at the time the Bank was purchased July 8th,
1935, establishes and divides the administrative organization, under
the general control of the Board of Directors, as follows:
- 1.
- A President and General Manager has general supervision
over both the Commercial and Government divisions of the
Bank, and he is the administrative head of the Bank.
-
a.
- The Commercial division of the Bank is under the
direction of:
- (x)
- A Vice President and Manager
- (y)
- A Vice President and Assistant
Manager.
- Note: Both of these officers are members of the
Board of Directors and are assisted by the Chiefs of
the Legal and other sections of the Bank.
-
b.
- The Government division of the Bank is
administered by:
- (x)
- A Vice President and Manager (who is
likewise a member of the Board of
Directors).
Obviously the Government side of the Bank (paragraph 1–b above) could not take over its intended
duties until the proposed agreement terminating United States
financial control had been consummated and the details thereof
communicated to the Bank.
The plan now suggested for the organization and functioning of the
Government side of the Bank is as follows:
The following sections of the Fiscal Representative’s office will be
transferred to the Bank where they will operate under their present
section chiefs and under the general direction of the President and
General Manager and under the immediate direction of the Vice
President and Manager of the Government Division.
- I.
- Section of Legal Advice, Economic Reports and
Statistics.
- II.
- Credit and Disbursing Section.
- III.
- Section of Bordereaux Control.
[Page 653]
The functions of these last named sections will be as follows:
I. Section of Legal Advice,
Economic Reports and Statistics
a. Legal Advice.
This part of the section will give advice to the whole organization
of the Bank on matters of law. It will be called on principally to
interpret tax laws, especially customs and internal revenue laws,
both for the guidance of officers and employees working with such
legislation and with individual cases which may arise. It will
likewise be concerned with the interpretation of contracts
whereunder individuals have acquired certain rights and privileges
from the State or have incurred certain obligations to the State. It
will pass upon the legality of disbursements and will give its
opinion regarding the validity of claims against the Government so
that the competent authorities of the State may be appropriately
advised.
It is foreseen that the Legal Section may also be requested to give
its advice on other subjects directly or indirectly connected with
the finances of the Government.
b. Preparation of Financial Notes
for the Monthly Bulletin.
This part of the section will be charged also with the duty of
preparing financial notes for publication in the monthly Bulletin of
the Bank and reviewing for inclusion therein such material as may be
submitted by the Departments of the Government.
c. Preparation of Annual
Report.
This part of the section will be charged further with the
preparation, under direction of the higher officers of the Bank, of
the annual economic and financial report to be issued by the Bank.
For this purpose it will obtain statistical data and will consider
the suggestions of other sections and divisions of the
organization.
d. Statistical Analysis.
This part of the section will handle matters requiring the
compilation, study and analysis of statistical data. Inquiries for
such data, whether from civil or government sources, will be
answered by this subsection. Data to be included in official reports
to the League of Nations, for example, will be prepared here. In
general, it will concern itself with all matters relating to the
study, interpretation and analysis of commercial and financial
statistics, as well as statistical data relating to Government
finance.
e. Economic Reports.
This part of the section will study and, when called upon, will
prepare reports concerning such subjects as financial legislation,
the application [Page 654] of the
tariff and other tax laws, the budget, the public debt, foreign
trade, domestic commerce and industry, and it will examine and
analyze the probable effect of proposed legislation or
administrative decrees or regulations affecting the budget and the
financial structure of the State.
f. Archives.
This part of the section will be charged with the responsibility of
maintaining the archives of the Government division of the Bank.
The employees necessary for this section are listed in the annexed
table.
II. Credit and Disbursing
Section
a. Audit.
This part of the section will examine all Government vouchers with a
view to determining whether proposed payments are legally authorized
and whether they are supported by the necessary justifying
documents. It will determine whether proposed items are properly
chargeable to a given appropriation and whether a sufficient balance
remains in that appropriation to cover the payment involved.
Vouchers passing this Audit subsection successfully will be sent to
the Accounting and Disbursing subsections; those not approved, as
for example those not found to be in harmony with existing
legislation and appropriations, or which call for excessive
payments, are to be returned to the originating office, together
with a statement setting forth the reasons therefor.
b. Accounting.
The duties of this part of the section may be described under the
four following headings:
- 1.
- The preparation and maintenance of records covering
budgetary, extraordinary and nonfiscal accounts. Amounts
available for expenditure under all appropriations will be
here set up and this subsection will debit against such
appropriations vouchers by the Audit subsection and will
credit all reimbursements thereto in order that records of
available balances may be currently available.
- 2.
- This subsection will also classify all expenditures in
accordance with the functional nature of such expenditures
in order that a counter check on the Audit subsection may be
obtained as to the total amount of all disbursements.
- 3.
- It will maintain current records of all Government Bank
balances and will classify receipts. With this in view it
will receive daily statements from the Bank’s branches
covering both Gourde and Dollar [Page 655] accounts of the Government. Checks
attached to support debits against these accounts will be
examined to determine whether they have been properly signed
by disbursing officers and payees. This subsection will
likewise inquire as to the legality of powers of attorney
and will examine powers with a view to preventing fraud.
Customs, internal revenue, miscallaneous, and reimbursement
bordereaux attached to bank
statements in support of credit will be verified to
determine whether the proper amounts have been credited.
Records will be kept of all receipts by ports, sources, and
categories. This procedure will reconcile daily bank
statements and will serve to record funds on deposit for the
Government elsewhere than in the Bank itself.
- 4.
- This part of the section will correlate and consolidate
records covering all bookkeeping operations of the Bank and
will compile financial statistics to serve as a basis for
the preparation by the Statistical subsection of the monthly
bulletin and the annual report. It will also prepare the
financial forecast as well as the monthly financial
statement of the Government. This latter shows treasury
assets and liabilities, the distribution of cash
investments, the position of the public debt, classified
receipts, expenditures classified by services, departments,
and function, the unexpended balance of appropriations, and
the position of nonfiscal accounts.
This part of the section will also maintain records covering the
investment of the treasury funds and loans to Communes and will
report the payments due the treasury on these accounts as they fall
due. Records of accruements to the pension fund and of cash advances
to paymasters will be kept in this section.
c. Disbursing Subsection.
This subsection will maintain a card record of payments to each
Government employee, pensioner and owner of property rented to the
State. Checks, payrolls and expense vouchers covering payments of
salaries, pensions and rents will be prepared and sent to the Audit
and Bookkeeping sections. These vouchers, as well as the vouchers
prepared by other governmental offices, will pass through the Audit
and Bookkeeping sections, and the checks in payment thereof will be
protectographed and given a final comparison with the vouchers,
after which the facsimile of the Treasury seal will be placed
thereon. The checks, thus sealed, will be given to the Delegate of
the Secretary of State for Finance, who will sign them. Copies of
essential data from all Government checks will be filed in this
subsection. As and when the originals are paid or canceled, the
corresponding copies will be [Page 656] withdrawn from this file and those remaining will constitute the
record of outstanding checks.
d. Preparation of budget
estimates.
At the end of each calendar year or at any other agreed date, the
Audit and Disbursing Section as a whole will prepare estimates of
revenues and furnish other information to the Board of Directors of
the Bank in connection with the preparation of the estimates to be
approved by that body, upon which the budget of Ways and Means for
the next fiscal year is to be based. It will prepare any other
studies or estimates in connection with the budget of Expenditures
which may be desired.
e. Distribution of funds.
The Audit and Disbursing Section will prepare and recommend to the
responsible officers studies with reference to the distribution of
funds between the time and sight accounts and between New York and
Haiti funds.
f. Public debt.
The Audit and Disbursing Section as a whole is responsible for
recommendations with reference to the timely payment to the fiscal
agent of all amounts due under the loan contracts. It will maintain
records showing the distribution of payments between interest and
amortization; it will examine the expense accounts of the fiscal
agent of the two 1922 loans and will prepare statements as necessary
from time to time, showing the position of the public debt.
g. Files.
The Audit and Disbursing Section will maintain files containing all
accounting documents, including payment vouchers and paid
checks.
h. Inspection.
The Audit and Disbursing Section will be called upon from time to
time to make inspections of customs houses and disbursing offices
outside of Port-au-Prince. Inspections by the officers from the
Government service side of the Bank may be made from time to time as
may be thought necessary.
i. Preparation of checks and audit
of vouchers outside of Port-au-Prince.
Directors of Customs at the various outlying ports of the Republic
have been charged with the duty of preparing certain checks and of
[Page 657] auditing certain
payment vouchers submitted by various services of the Government.
This has been up to now audited and controlled by the Comptroller’s
office of the service of the Fiscal Representative. It is planned
that this work will hereafter be continued by the Directors of
Customs under the supervision of the manager of the branches of the
Bank, and that such reaudit and supervisory control as may appear
necessary will be exercised by the Audit and Disbursing Section.
The personnel necessary for the work of this section are listed in
the statement attached hereto.
III. Section of “Bordereaux”
Control
a. Examination and audit of
customs “bordereaux”
This part of the section will verify the correctness of the paragraph
of the tariff as applied at the various customs houses to each
article imported into the country. It will also calculate the duties
payable on all imports and all exports. Any discrepancy found in any
bordereau will be reported to the Vice
President and Manager of the Government division of the Bank for
necessary communication to the Director General of Customs and to
the Minister for Finance, in order that a supplementary bordereau may be issued or restitution made,
as may appear necessary and proper in the circumstances. Requests
for restitution of alleged overpayments will be referred to this
section and a reexamination of the documents will be made. Reports
on such demands for restitution will be made to the duly constituted
authorities for their information and guidance.
b. The preparation of commercial
statistics.
These statistics will cover the export and import values and
quantities of merchandise exported and imported. They will be
prepared in accordance with precedents heretofore established by the
Government of Haiti.
c. Mimeographing of the monthly
bulletin.
The monthly bulletin which will take the place of that now being
issued by the Bureau of the Fiscal Representative will be
mimeographed by this section.
d. Preparation of commercial notes
for the bulletin.
This section will be charged with the preparation of the commercial
notes which will be submitted to the Section of Legal Advice,
Economic Reports and Statistics for its use in editing the monthly
bulletin of the Bank.
[Page 658]
e. Correspondence and
files.
This section will be charged with the safe custody of files
appertaining to customs matters and all correspondence with regard
to this subject will here be handled. The originals of all
declarations and receipted customs bills covering imports and
exports as well as originals or duplicates of other customs and
shipping documents will be filed in this section.
f. Personnel.
The service records of employees of the Government service side of
the Bank will be kept in this section.
g. Examination of internal revenue
“bordereaux”
This section will check the computations of amounts shown on bordereaux and will determine, as far as
possible from the data shown thereon, that they have been drawn in
accordance with existing legislation.
The personnel necessary for this work are listed in the statement
attached hereto.
List of Salaries and Allowances
of Personnel Whose Salaries and Allowances Will Be Paid by the
Banque Nationale de la République d’Haiti Upon Transfer of the
Essential Services of the Bureau of the Representant Fiscal to
the Banque, as Contemplated in the Foregoing Memorandum
At the time of the purchase by the Haitian Government of the National
Bank of the Republic of Haiti, the Government rendered a decision
that the Fiscal Representative and the Deputy Fiscal Representative
as well as the two National City Bank officials, who were to remain
on the commercial side of the Bank, when elected to the Board of
Directors of the Bank, should retain the regular salaries which they
were then receiving, in the one case for their duties in connection
with the Government finance and debt services, and in the other for
their duties in the commercial side of the Bank, without reduction,
increase or other change in such salaries.
|
Gourdes
|
| President and General Manager of the
Bank, not including salary as director, monthly
salary |
6,250.00 |
| Secretary, monthly salary |
875.00 |
|
7,125.00 |
| Vice President and Manager in charge
of the Government service side of the Bank, not including
salary as director, monthly salary |
3,125.00 |
| Secretary, monthly salary |
650.00 |
|
3,775.00 |
[Page 659]
section of legal advice, economic
reports and statistics
|
Gourdes
|
| 1 Chief Assistant, monthly
salary |
1,875.00 |
| 1 Legal Adviser, monthly
salary |
975.00 |
| 1 Stenographer-translator, monthly
salary |
650.00 |
| 1 Stenographer-translator, monthly
salary |
375.00 |
| 1 File Clerk, monthly salary |
275.00 |
| 1 Stenographer, monthly salary |
275.00 |
| 1 Typist, monthly salary |
250.00 |
| 1 Stenographer, monthly salary |
125. 00 |
| 1 Messenger, monthly salary |
100.00 |
| 1 Office Boy, monthly salary |
50.00 |
|
4,950.00 |
Audit and Disbursing
Section
| 1 Comptroller, monthly salary |
2,250.00 |
| 1 Assistant Comptroller, monthly
salary |
1,750.00 |
| 1 Disbursing Officer, Fiscal
Representative’s Office, Chief of Bureau of Supplies,
monthly salary |
1,800.00 |
| 1 Delegate of Minister for Finance,
check signer, monthly salary |
1,000.00 |
| 1 Bookkeeper, monthly salary |
800.00 |
| 2 Bookkeepers, each Gdes. 425.00,
monthly salary |
850.00 |
| 1 Audit Clerk, payment vouchers,
monthly salary |
400.00 |
| 1 Bookkeeper, monthly salary |
350.00 |
| 2 Bookkeepers, each Gdes. 325.00,
monthly salary. |
650.00 |
| 1 Clerk, pay section, monthly
salary |
300.00 |
| 1 Addressograph Operator, monthly
salary |
275.00 |
| 1 Bookkeeper-audit clerk, payment
vouchers, monthly salary |
275.00 |
| 1 Clerk, principal duty filing
payment vouchers, monthly salary |
250.00 |
| 1 Audit clerk, bank statements,
monthly salary |
250.00 |
| 1 Bookkeeper, monthly salary |
225.00 |
| 1 Bookkeeper-check register clerk,
monthly salary |
225.00 |
| 1 Protectograph Operator, monthly
salary |
225.00 |
| 1 Audit Clerk, Bank statements,
monthly salary |
200.00 |
| 1 Typist, pay section, monthly
salary |
200.00 |
| 1 Bookkeeper, monthly salary |
175.00 |
| 1 Audit Clerk, pay section, monthly
salary |
175.00 |
| 1 Audit Clerk, bank statements,
monthly salary |
175.00 |
| 1 Clerk, bank statement section,
monthly salary |
175.00 |
| 1 File Clerk, monthly salary |
175.00 |
| 2 Typists, each Gdes. 150.00, monthly
salary |
300.00 |
| 1 File Clerk, filing paid checks,
monthly salary |
150.00 |
| 1 Messenger, monthly salary |
100.00 |
| 1 Office Boy, monthly salary |
75.00 |
|
13,775.00 |
[Page 660]
section of “bordereaux”
control
|
Gourdes
|
| 1 Chief of Section, monthly
salary |
1,875.00 |
| 1 Assistant Chief of Section, monthly
salary |
500.00 |
| 1 Stenographer-translator, monthly
salary |
500.00 |
| 1 Stenographer-translator, monthly
salary |
425.00 |
| 1 Statistical clerk, monthly
salary |
400.00 |
| 1 Audit clerk, monthly salary |
375.00 |
| 1 File clerk, monthly salary |
375.00 |
| 1 Statistical clerk, monthly
salary |
350.00 |
| 1 Audit clerk, monthly salary |
300.00 |
| 2 Audit clerks, each Gdes. 275.00,
monthly salary |
550.00 |
| 1 File clerk, monthly salary |
275.00 |
| 1 Audit clerk, monthly salary |
250.00 |
| 1 Typist-statistical clerk, monthly
salary |
250.00 |
| 1 Audit clerk, monthly salary |
225.00 |
| 1 Statistical clerk, monthly
salary |
225.00 |
| 1 Statistical clerk, monthly
salary |
200.00 |
| 2 Audit clerks, each Gdes. 200.00,
monthly salary. |
400.00 |
| 5 Audit clerks, each Gdes. 175.00,
monthly salary |
875.00 |
| 5 Statistical clerks, each Gdes.
175.00, monthly salary |
875.00 |
| 2 Typists, each Gdes. 175.00, monthly
salary |
350.00 |
| 1 Audit clerk, monthly salary |
150.00 |
| 1 Statistical clerk, monthly
salary |
150.00 |
| 1 Audit clerk, monthly salary |
125.00 |
| 1 Coffee sample checker, monthly
salary |
125.00 |
| 1 Mimeograph operator, monthly
salary- |
100.00 |
| 1 Messenger, monthly salary |
100.00 |
|
10,325.00 |
summary
| President’s office, monthly
salaries |
7,125.00 |
| Vice President’s office, monthly
salaries |
3,775.00 |
| Section of Legal Advice, Economic
Reports and Statistics, monthly salaries |
4,950.00 |
| Audit and Disbursing Section, monthly
salaries |
13,775.00 |
| Section of Bordereaux Control, monthly salaries |
10,325.00 |
| Total |
39,950.00 |
The foregoing salaries do not include the cost of maintaining two
automobiles and their chauffeurs for the President and Vice
President in charge of the Government division of the Bank.
Similarly not included are such necessary expenses as those for
supplies, equipment of the offices, postage, paper, checks and
similar furnishings and also expenditures for such items as
telegrams, travel, inspections, vacations and also services
allowable to foreign employees both under the Bank regulations and
under the present regulations of the Government. The average
expenditures for travel, inspection, supplies and material for these
services which are to be transferred to the Bank has been
approximately [Page 661] $24,000
annually, which when added to the estimated total $95,880 for
salaries of personnel of the Government side of the Bank, gives a
grand total of $119,880. Accordingly, it is not believed that the
total expenditures of the Government side of the Bank can be reduced
below $110,000 if the work is to be carried on in an efficient
manner set forth in the foregoing memorandum.
It is also considered that the salaries that are indicated for the
various employees do not represent necessarily fixed amounts, but as
vacancies occur by resignation or dismissal responsible officers of
the Government division of the Bank will be expected to exercise the
same discretion in regard thereto as the responsible officers of the
Commercial division of the Bank and that they will make such
distribution and allocation, having regard for promotions and
changes and within a lump sum appropriation of not less than
$110,000.00 annually as they may deem to be in the best interest of
the organization. It is understood in any case that this last named
lump sum includes the amount necessary for the purchase of supplies
and the payment of other necessary expenses as may be required for
the proper functioning of the Government division of the Bank.
It must also be considered that any large increase in the commercial
business of the Republic will require an expansion of the clerical
force auditing the various documents and that necessarily some
flexibility must be allowed as to increasing or decreasing the
number of persons employed. As stated above it would appear that the
minimum annual budget for these purposes should be placed at 550,000
Gourdes ($110,000.00).
[Enclosure 3]
Draft Aide-Mémoire No. 1A
The Minister of the United States presents his compliments to the
Secretary of State for Foreign Affairs and has the honor to refer to
the latter’s aide-mémoire accompanying his
note of November 26, 1936, transmitting a draft counter project of a
note forming part of a draft protocol terminating United States
financial control in Haiti.
The Government of the United States regrets that it cannot accept the
Haitian proposal that the commission to the Bank for Treasury
services of two percent be fixed at a guaranteed minimum of 600,000
gourdes. In this connection, the Government of the United States
desires to point out that the essential services now performed by
the Office of the Fiscal Representative, which it is understood are
to be transferred to the Government side of the Bank, have required
an average annual expenditure in the last five years of
approximately 550,000 gourdes. As the Haitian Government has stated,
under the Contract of Concession of September 5, 1910, the Bank was
to receive [Page 662] one percent of
total Government deposits or a minimum commission of 300,000 gourdes
per annum. This would indicate that the services to be performed by
the Bank upon the basis of similar services performed in the past by
the Bank and the Fiscal Representative’s Office would require a
minimum expenditure of approximately 850,000 gourdes.
The Government of the United States, in its original draft note as
submitted by its Minister on November 18, 1936, had in mind a
guaranteed minimum for the two percent Treasury services of the Bank
of 800,000 gourdes, this being the lowest figure upon which the Bank
may efficiently operate.
Accordingly, the Government of the United States proposes that if the
Haitian Government should so desire, the last paragraph of point two
of the draft note forming part of the protocol should read as
follows: “For the service of the Treasury and for all the
administrative service that it may render with a view to assuring a
complete protection of the interests of the holders of the loan, the
Bank shall levy two percentum of all the gross receipts of the
Government in each year, provided, however, that if necessary to
constitute a minimum amount of 800,000 gourdes, such percentage
shall be correspondingly increased, and provided further that such
percentage shall not exceed a total amount of 1,000,000
gourdes.”
Although Article 3 of the Haitian counter project of the draft note
forming part of the protocol states that “The Government will give
to the Bank the irrevocable instructions specifying that payments
for the service of the loan and for the Treasury service of the Bank
shall enjoy priority over any other payments to be effected from the
funds of the Government”, the Government of the United States notes
that such “irrevocable instructions” are set forth by implication
rather than by direct statement in Article 8 of chapter 2 of the
proposed draft law No. 1 on “service of control of receipts and
expenditures of the Republic”. The Government of the United States
would prefer, in view of certain guarantees to the bondholders
contained in their bonds, to see a definite provision for this
priority set forth in the appropriate draft legislation which may be
enacted.
The Government of the United States perceives no objection, should
the Haitian Government prefer to raise from two to three percent the
percentage of the customs receipts which is to be devoted to the
maintenance of the customs service, and from twelve to thirteen
percent the percentage of internal revenue receipts which is to be
devoted to the maintenance of the internal revenue service with
suitable guarantees in each case of a minimum. However, the
Government of the United States wishes to call attention to the fact
that the Haitian counter project to the draft note forming part of
the protocol does not appear to contain any proviso that the sums
allotted for the customs and internal revenue services shall
constitute first charges [Page 663]
on receipts of the Government ranking with payments for the 1922
bonds and the Treasury service of the Bank, to be paid before any
expenditures for other purposes of the Haitian Government. The
Government of the United States feels that it is most necessary that
such a proviso be retained as set forth in paragraph No. 2 of its
own draft note since it is upon these services that in the last
analysis lies the security of the guarantees to the bondholders of
the 1922 loans.
[Enclosure 4]
Draft Aide-Mémoire No. 2A
The Minister of the United States presents his compliments to the
Haitian Minister of Foreign Affairs and has the honor to refer to
the aide-mémoire which accompanied the
Haitian Minister’s note of November 26, 1936, transmitting a Haitian
counter project of a draft note forming part of the proposed
protocol terminating United States financial control in Haiti.
The Government of the United States has noted with pleasure the
statement contained in the aide-mémoire that:
“The Secretary of State for Foreign Relations desires to
inform the American Minister that the Haitian Government
consents willingly to accord to the American employees who
may be dismissed upon the closure of the office of the
Fiscal Representative the same treatment accorded to
American employees dismissed upon the termination of the
other American services in Haiti, with the reservation that
the Haitian Government does not believe that there is any
occasion to grant any indemnity to those American employees
whose services may be retained in whatever capacity in the
new organization of control to be created in the National
Bank of the Republic of Haiti.”
[Enclosure 5]
Draft Aide-Mémoire No. 3A
The Minister of the United States presents his compliments to the
Haitian Minister of Foreign Affairs and has the honor to refer to
the aide-mémoire which accompanied the
Haitian Minister’s note of November 26, 1936, transmitting a Haitian
counter project of a draft note forming part of the proposed
protocol terminating United States financial control in Haiti.
With respect to the desire of the Haitian Government that the date
for the entry into effect of the proposed protocol be fixed on the
first day of a fiscal month not later than thirty days after the
signature of the protocol, the Government of the United States
regrets that it cannot share the Haitian point of view that such a
short period of time would be ample to permit the transfer of
certain services from the [Page 664]
office of the Fiscal Representative to the newly organized
Government side of the National Bank of the Republic of Haiti. The
Government of the United States, however, believes that a period of
between thirty and sixty days will be sufficient in order to effect
this transfer and that the actual time necessary depends to some
extent upon whether it will be necessary for the new services of the
bank to be removed physically from the premises of the Palace of
Finance to some other building which might be provided by the
Government. In this connection the United States Government suggests
that the Acting Fiscal Representative might well be consulted in
order to reach an agreement as to the exact time which might be
necessary before the date for the entry into effect of the protocol
may properly be fixed.
[Enclosure 6]
Draft Aide-Mémoire No. 4A
The Minister of the United States presents his compliments to the
Haitian Minister of Foreign Affairs and has the honor to refer to
the aide-mémoire which accompanied the
Haitian Minister’s note of November 26, 1936, transmitting a Haitian
counter project of a draft note forming part of the proposed
protocol terminating United States financial control in Haiti.
The Government of the United States has been pleased with the
willingness of the Haitian Government to cooperate by submitting to
the United States Legation, before they are voted, the draft laws
which must be enacted as an accompaniment to any arrangement putting
an end to the present United States financial control.
[Enclosure 7]
Draft Aide-Mémoire No. 5A
The Minister of the United States, presents his compliments to the
Haitian Minister of Foreign Affairs and has the honor to refer to
the aide-mémoire which accompanied the
Haitian Minister’s note of November 26, 1936, transmitting a Haitian
counter project of a draft note forming part of the proposed
protocol terminating United States financial control in Haiti.
The Government of the United States has noted with satisfaction the
statement contained in an aide-mémoire by
which Your Excellency was good enough to inform me that the Haitian
Government will proceed without delay to the publication in the Moniteur of the contract of July 18, 1935,
relative to the purchase by the Haitian Government of the National
Bank of the Republic of Haiti.
