838.51/3321
The Secretary of State to the Minister in Haiti ( Gordon )
Sir: During the last week, the new Haitian Minister21 has called a number of times at the Department for informal conversations with regard to the proposed loan by the J. Henry Schroder Banking Corporation, and the suspended negotiations with this Government for the termination of official United States financial control in Haiti. The attached memoranda,22 and other documents, fully summarize these conversations.
It will be noted that the Minister has stated his belief that the negotiations for conclusion of the protocol which will terminate United States financial control in Haiti should be resumed and expedited. Furthermore, in his undated memorandum which was communicated under cover of a personal letter to Mr. Welles of April 30, 1937,23 the Minister appears to advance only two main points of difference between the two Governments with respect to the proposed protocol, namely, (1) the amount to be allocated to the National Bank for carrying on the “Treasury” and other services to be entrusted to it upon the abolition of the office of the Fiscal Representative, and (2) the size of the personnel that is to form the so-called “Government Side” of the Bank.
It will also be noted that the Department with regard to the first point, has suggested for consideration a fixed annual amount of 800,000 gourdes, and with regard to the second, has pointed out that the plan as suggested by this Government envisages a curtailment of fifty percent in the number of Americans now in the service of the Fiscal Representative, who are to be transferred to the National Bank. The Haitian Minister expressed the belief that his Government would be satisfied with these two proposals and added that he would, on his part, urge the acceptance of this solution upon his Government.
At some appropriate time in the near future you are requested, unless you perceive objection to these most recent proposals, to inform the [Page 535] Minister of Foreign Relations that this Government not only stands ready, but desires to conclude the negotiations for the termination of United States financial control in Haiti, and that as a solution of the only two important points which it is understood, stand in the way of a final agreement, the Department is prepared to suggest for consideration the proposals above mentioned. You may add that the Department has arrived at these proposals only after mature consideration, animated as always by its desire to meet legitimate Haitian aspirations as far as may be consistent with the responsibilities which both Governments have assumed with respect to the holders of the bonds of the Haitian loans of 1922.
It seems scarcely necessary to say that the Department relies on your discretion not to embarrass the Haitian Minister here. M. Lescot has given every evidence of being extremely frank and helpful in his approach to the Department … M. Lescot, it may be added in conclusion, has admitted that his knowledge of the more intimate and detailed phases of the Schroder loan proposal and the protocol negotiations is somewhat limited, and the Department, therefore, is unable to judge how much of his belief that the Haitian Government would accept the two new proposals of this Government, is founded in fact on the position of the Haitian Government and how much is founded on his own desire to be cooperative.
Very truly yours,