838.51/3408: Telegram

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

56. Department’s instruction 507, August 2.38 I am quite certain that Leger, when he replied to Eberstadt was entirely unaware that [Page 551] the latter proposes to have powers conferred on the fifth member of the bank board substantially identical with those now exercised by the fiscal representative. I am equally certain that he entertained no idea that the American Government would be willing to nominate the fifth member. What he probably had in mind was that the Federal Reserve Bank might, as I understand it recently did in Brazil, name a panel of experts from which the choice could be made or failing that that the Foreign Bondholders Association might do so.

It appears to me that the positions of the two parties to this affair are much farther apart than either realizes. De la Rue is hopeful that Eberstadt’s next letter to Leger will make his position clearer and that meanwhile Lancaster and Dulles will have given him a clearer picture of Leger’s position. He has written Lancaster.

Finley
  1. Not printed; it transmitted a copy of a memorandum of conversation between the Chief of the Division of the American Republics and Mr. Eberstadt, reported in telegram No. 33, August 2, 4 p.m., supra (838.51/3407).