838.51/3584

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

No. 139

Sir: Referring to my despatch No. 138 of April 20, 193821 in which among other things the Legation reported that the Fiscal Representative had been instructed by the Haitian Government to proceed to the United States for certain purposes among which was the inauguration of preliminary conversations with the Foreign Bondholders Protective Council with a view to a new accord on the external loan, I have the honor to transmit herewith enclosed an office [Page 594]copy and translation of the instructions to the above effect which the Minister for Finance wrote to Mr. de la Rue under date of April 19, 1938.

Respectfully yours,

Ferdinand L. Mayer
[Enclosure—Translation]

The Haitian Minister for Finance (Léger) to the Fiscal Representative of Haiti (De la Rue)

Mr. Fiscal Representative: It is becoming evident that it is no longer possible to hope that in the immediate future there will be an appreciable improvement in the economic and financial situation of the Republic of Haiti.

On the contrary, it is to be anticipated that the present low price of coffee will persist, at least during next year, and that in consequence the receipts from its exportation will be approximately the same for the next as for the current budget.

In these circumstances, the Government finds it necessary to negotiate with the American Government a new Accord for the service of the amortization of the external loan.

I should, therefore, be obliged to you if you would be good enough to go to New York in order to commence preliminary conversations to this end, notably with the Foreign Bondholders Protective Council.

I will communicate to you at a later date if the Government believes it is necessary to negotiate an accord similar to that which was signed on January 13, 1938, only for the fiscal year 1938–1939, or if it considers the new accord should cover a period of two years.

I wish to invite your attention to the fact that it will be impossible for me to draw up and have voted a budget for the period 1938–1939 so long as a new accord for the amortization for the debt shall not have been concluded.

Accept [etc.]

Georges Léger
  1. Not printed.