839.51/4660

Memorandum of Conversation, by Mr. Selden Chapin of the Division of the American Republics

The Dominican Minister called this morning and in accordance with an arrangement with Mr. Hawkins,14 I took him to see the latter who delivered to him the Department’s memorandum15 replying to a Dominican memorandum16 on the proposed trade agreement between the Dominican Republic and the United States. The Minister appeared to be satisfied with such points of the memorandum as Mr. Hawkins outlined to him orally.

Later, the Minister delivered to me the attached clean copies of the Draft Convention and Enabling Act,17 which he said had been made up as a result of further conversations over the weekend in New York City with Mr. Lancaster.18 It will be observed that the Draft Convention incorporates all of the suggestions which were developed during my conversation with the Minister on December 5.19 The Minister inquired, however, whether I felt it would be satisfactory to this Government should the Dominican Government so desire, to incorporate the substance of Article III of the Draft Convention in an exchange of notes. I replied that provided Article II was strengthened, such a procedure might be acceptable. It will also be [Page 503] observed that the new draft Enabling Act is based upon the revision of the draft prepared by Mr. Collado20 and is now in much more logical order than the original proposal. The new draft seems to me entirely satisfactory since it apparently contains all of Mr. Collado’s suggestions, going in fact beyond those with respect to the setting forth of the bank’s powers and in providing for reserves, allocation of profits, et cetera. A new Article XXXI creates authority for a pension system.

The Minister stated that it would be necessary to arrange by exchange of notes for the retirement of the floating debt and for the transfer of the receivership pension system to the bank.

I reiterated to the Minister in accordance with the instructions of the Under Secretary, that Mr. Welles had had a chance merely to read over the Draft Convention and Enabling Act, but not to give them any profound study. I said that Mr. Welles had asked me to tell him that in his opinion, the Draft Convention and Enabling Act seemed to form a satisfactory basis for future discussions, but that it was to be thoroughly understood that neither this Government nor that of the Dominican Republic was to be considered in any way committed by this draft. Señor Pastoriza said that this was entirely his own understanding.

  1. Harry C. Hawkins, Chief, Division of Trade Agreements.
  2. Post, p. 505.
  3. Post, p. 503.
  4. Not printed.
  5. William W. Lancaster, member of New York law firm of Shearman and Sterling, counsel of the National City Bank of New York.
  6. Memorandum of this conversation not printed.
  7. Emilio G. Collado, of the Division of the American Republics.