I am hopeful that prior to your departure from Washington further
information will have been received from our Embassy in Paris with
regard to the 1910 Haitian franc loan. If such information is received I
shall, of course, communicate with you at once.
I am, my dear Mr. Lescot,
[Enclosure]
The Department of
State to the Haitian
Legation
I. Proposed Protocol Abrogating
the Protocol of October 3, 1919, and the Accord of August 7,
1933.
The Government of the United States, in harmony with its consistent
policy of clearing up as rapidly as may be possible the vestiges of
its special relationships with certain countries of the Caribbean
area, is desirous of concluding a protocol with the Haitian
Government which will liquidate official American financial control
in Haiti, and will
[Page 552]
abrogate the Protocol of October 3, 1919, and the Accord of August
7, 1933. Although equally desirous of recognizing as far as may be
possible legitimate Haitian aspirations to obtain complete
autonomous control over the collection and allocation of the
revenues of the Republic, the Government of the United States,
mindful of the responsibilities which it together with the
Government of Haiti has assumed towards the holders of the bonds of
the 1922 loan, feels that it would not be warranted in agreeing to a
protocol whose terms did not provide adequate guarantees for the
bondholders. Accordingly, the Government of the United States
believes that a protocol with accompanying letter along the broad
lines of that submitted to the Haitian Government on November 18,
1936, as amplified by a memorandum of the proposed organization of
the National Bank of Haiti, submitted to the Haitian Government on
December 23, 1936, represents approximately the minimum guarantees
which would adequately safeguard the rights of the bondholders of
the 1922 loan. It should be understood, however, that while the
Government of the United States holds to the broad basis of the plan
which had already been agreed upon between the two governments in
1934, it has no desire to insist rigidly upon the details of this
plan.
II. Proposed Refunding or
Construction Loan to Haiti.
The Government of the United States would be greatly pleased to see,
as a most happy solution of the existing special relationship, a
refunding loan to Haiti underwritten by a group of responsible
bankers either in this country or elsewhere. While the terms of such
a loan can be of no direct concern to this Government, which in any
case must stand aloof, the United States would naturally be
disappointed, as a sincere friend of Haiti and of the Haitian
people, if such terms were unduly onerous or disadvantageous as
respects Haiti or if they imply any possibility of future impairment
of Haiti’s sovereignty.
Accordingly, the Government of the United States feels that the
decision whether the Haitian Government prefers to contract a
smaller loan in the absence of a refunding loan and the terms upon
which any loan might be obtained, are matters purely of concern to
the Haitian Government.
As has been made clear on various occasions to the Haitian
Government, the Government of the United States is unalterably
opposed to any new arrangement which might extend or be construed as
extending the present American financial control in Haiti.
Therefore, the Government of the United States is unable, either
directly or indirectly through one of the semi-autonomous
organizations under control of this Government, to nominate any
official who might serve in any capacity in connection with a future
loan to Haiti.
[Page 553]
III. The 1910 Haitian Franc
Loan.
The Government of the United States was pleased, at the instance of
the Government of Haiti, to exercise again its good offices with
respect to the French Government in connection with the demand by a
certain group of French bondholders for an additional settlement
beyond that offered in 1922–23 to the holders of the 1910 Haitian
franc loan. The Government of the United States has consistently
endorsed the point of view set forth by the Haitian Government, that
full and equitable settlement was tendered to the holders of the
1910 loan in 1922–23.
