838.51/3483: Telegram

The Secretary of State to the Minister in Haiti ( Mayer )

62. De la Rue informs me that the financial situation in Haiti is becoming alarming and has been further aggravated by the recent drop in coffee prices which threatens to curtail almost entirely the exportation of coffee unless the price to the peasant cultivator can be increased.

He has been informed by Leger that the latter is not in favor of the proposed temporary reduction of 33 per cent in the coffee export duty since he is reluctant to change tax structure in view of negotiations for French loan which he believes should be brought to successful conclusion within 20 days. De la Rue feels that internal economic conditions can not continue without some stimulation of coffee trade for that long a period and that meanwhile Haiti’s place in the American coffee market so laboriously gained may be endangered.

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At his request and since I understand that Léger intends to defer for 2 weeks or more making inquiries through New York with respect to Lajoinie and his associates, I now authorize you to communicate orally and strictly confidentially to Léger the substance of the two telegrams from the Embassy in Paris contained in Department’s 59, November 17, 4 p.m.

Please cable promptly such reaction as you may obtain from Leger.

Hull