838.51/3400: Telegram
The Secretary of State to the Chargé in Haiti (Finley)
33. Your 52, July 30, 11 a.m. On July 28, in a conversation with the Chief of the Division of the American Republics, Eberstadt made essentially the same statements regarding the conditions under which he and his associates would undertake the flotation of a public works loan for Haiti which your telegram under reference reports he made to Leger.
Mr. Eberstadt was informed that it would be entirely contrary to the policy of this Government to have anything whatsoever to do with the appointment of the fifth member of the Board of Directors of the Bank or in any way assume any responsibilities in connection with the new loan.
If inquiry is made by the Haitian Minister for Foreign Affairs as to the attitude of this Government with regard to the Eberstadt proposal, you may make the same statement to him.
In concluding his conversation, Mr. Eberstadt said that there might be some other formula which could be worked out which would protect to the same degree the interests of the bondholders and that if such a formula were suggested he, of course, would be only too glad to accept. He stated, however, that he did not wish to recommend to his clients any loan that he himself did not feel was adequately safeguarded and he expressed great doubt as to the possibility of finding any other arrangement which would afford the same degree of protection as that which now exists under the 1922 loan.