838.51/3400: Telegram

The Chargé in Haiti ( Finley ) to the Secretary of State

52. Legation’s 46, July 17, 1 p.m. [10 a.m.]. Eberstadt has now informed Leger that the flotation by him and his associates of a refunding and public works loan for Haiti would involve in all probability the nomination of a board of directors of the bank consisting of five members, two of whom would be nominated by the Haitian Government, two by the trustees of the loan and one “by a mutually acceptable agency of the United States Government”. De la Rue understands that Eberstadt has the Federal Reserve Bank in mind as this mutually acceptable agency. Government collections and disbursements would of course be made through the bank.

Eberstadt told Leger that the attitude of his prospective associates is lukewarm and that he does not look for much success unless the guarantees can be substantially as stated above. He also stated that he did not see how he would be able to come to Haiti before early September.

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Having in mind the Department’s 24 of July 8, 5 p.m., the Legation would be glad to be informed how the Department would regard the nomination of a director of the bank by the Federal Reserve Bank or other American Government agency.

Finley