838.51/3284: Telegram

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

5. Your 4, March 4, 12 noon. Bogdan8 of Schroder and Company had an interview with Duggan9 on March 1 in which he stated that Schroder and Company were still interested in forming a banking group in which presumably substantial American interests would participate for floating a refunding and construction loan for Haiti. Bogdan stated Schroder’s interest was predicated on a substantial portion of this proposed loan being exchangeable for German marks in order to release frozen credits in Germany of American firms. These marks would be used in the purchase of equipment and supplies for construction and for the payment of the services of Swiss Brown Bouverie as public works contractors. Bogdan affirmed that Darnet produced several letters from Leger which made it clear inter alia that Haiti had no objection to a certain amount of blocked marks or to the use of German construction equipment and that for a refunding loan Haiti would sell or pledge the Bank and permit customs control by the bankers.

With reference to paragraph 3 of your telegram, while the Department agrees that it is regrettable that negotiations for a protocol should be further delayed, it does not feel that it would care to take any steps which might later give the Haitian Government any grounds for alleging that this Government intervened to prevent Haiti obtaining a refunding loan at this time.

A copy of the memorandum of the interview is being forwarded by open air mail today.

  1. Norbert A. Bogdan, Vice President of Schroder Banking Corporation.
  2. Laurence Duggan, Chief of the Division of Latin American Affairs.