838.51/3649

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

No. 222

Sir: I have the honor to refer to my telegram No. 74, dated July 1, 12 noon, 1938,28 and to enclose the Supplementary Executive Agreement between the United States and Haiti which was signed here this morning,29 prolonging the partial moratorium on amortization of the 1922 Loan until September 30, 1939. The signed document is enclosed.

There are also transmitted copies of the exchange of Notes preliminary to the signing of the Accord.

Respectfully yours,

Ferdinand L. Mayer
[Enclosure 1]

The American Minister (Mayer) to the Haitian Minister for Foreign Affairs (Léger)

No. 65

Excellency: I have the honor to acknowledge the receipt of Your Excellency’s Note dated June 14, 1938, which states that the economic and financial situation of the Haitian Government has scarcely been modified since January 11, 1938, the date of Your Excellency’s last communication on this subject, and that the outlook for the fiscal year 1938–1939 does not permit the hope that this situation will notably improve. The Haitian Government, therefore, finds itself obliged to request the American Government to prolong the provisions of the Accord of January 13, 1938, for a further period, running from October 1, 1938, to September 30, 1939.

Your Excellency states that the world market for coffee has scarcely changed, and that the situation in this respect is still the same as that described in the Note of January 11, 1938. Prices have not [Page 600]been maintained at the hoped for levels and, consequently, the receipts of the Haitian Government will attain with difficulty the sum of Gdes. 28,000,000 although Gdes. 28,690,000 had been foreseen.

It is noted that Your Excellency’s Government has most meritoriously realized the economies to which it engaged itself in its Note of January 11, 1938, and, with its available funds, will meet its expenses during the remainder of the present fiscal year. It is also noted that in these conditions the Haitian Treasury will possess no appreciable reserve at the beginning of the next fiscal year.

Your Excellency continues by stating that the Office of the Fiscal Representative estimates receipts during the next fiscal year at Gdes. 29,189,000, a sum clearly insufficient, you state, to permit the Government to maintain the services necessary to public order and economic stability and, at the same time, to assure the full amortization of the loan of 1922.

In requesting the American Government to prolong the period of the reduction in amortization granted in the Accord of January 13, 1938, Your Excellency confirms the determination of the Haitian Government to continue the execution of all the engagements taken in the Note of January 11, 1938, and encloses a copy of a letter, dated June 14, 1938, from the Fiscal Representative setting forth his estimates of receipts during the fiscal year 1938–1939.

In reply, I have the honor to inform Your Excellency that I have been authorized by my Government to conclude and sign a Supplementary Executive Agreement extending the Accord of January 13, 1938, for one year from September 30, 1938, as follows:

Supplementary Executive Agreement

The undersigned plenipotentiaries, duly authorized by their respective governments, have agreed upon the following supplementary executive agreement:

Article I

On and after October 1, 1938, and until and including September 30, 1939, all moneys received by or for the Haitian Government shall be deposited in the National Bank of the Republic of Haiti to the credit of the Haitian Government with the exception of the five percentum of customs revenues foreseen in Article IX of the Accord of August 7, 1933, and the amounts needed for payments connected with the execution of the Loan Contracts which payments during the period mentioned shall consist of the amounts necessary to pay the interest on all outstanding bonds issued under the Loan Contracts of October 6, 1922, and May 26, 1925, and $20,000 on account of the amounts required to be paid under such Loan Contracts for the amortization of the bonds, which amounts shall be credited to the Fiscal Representative.

[Page 601]

Article II

The provisions of the first sentence of Article XI and the first and last sentences of Article XVI of the Accord of August 7, 1933, to the extent and only to the extent that they may be inconsistent with the provisions of Article I of this Accord, shall be suspended so long as this Supplementary Executive Agreement remains in effect.

Signed at Port-au-Prince, in duplicate, in the English and French languages, this . . . . . day of . . . . . . ., nineteen hundred and thirty eight.”

Referring to the statement in Your Excellency’s Note under acknowledgment that the Government of Haiti will continue during the period of the prolongation of the reduction in amortization payments to carry out all the engagements set forth in the Note of January 11, 1938, and also to the understanding of the Haitian Government in the last mentioned Note that extraordinary appropriations outside of the general budget would be restricted to emergencies duly recognized as such in accord with the Fiscal Representative during the period of the default, my Government understands that the specific undertaking mentioned is not designed to prevent appropriations for the construction of public works aimed at increasing the economic prosperity of the country, the funds for which will be obtained from a loan floated by the Haitian Government for this specific purpose. I shall be pleased to learn whether Your Excellency’s Government shares this understanding. I shall also be pleased to learn Your Excellency’s pleasure as to the time and place for signing the proposed Supplementary Executive Agreement.

Accept [etc.]

Ferdinand L. Mayer
[Enclosure 2—Translation]

The Haitian Minister for Foreign Affairs (Léger) to the American Minister (Mayer)

Mr. Minister: I have the honor to acknowledge receipt of the letter of the 27th of this June, by which Your Excellency was good enough to advise me that you had been authorized by your Government to sign an agreement extending for a period of one year the arrangement entered into by our two Governments on January 13, 1938, relative to the amortization service on the 1922 loan.

Thanking Your Excellency for that communication, I have the honor to suggest that the agreement in question be signed at 11 a.m. on the 30th of this June, if that date and hour suit Your Excellency.

It is understood between the two Governments, as you have brought out in your letter, that the engagements assumed by the Haitian Government in the letter of January 11, 1938, do not place any obstacle [Page 602]in the way of the passing of appropriations for the execution of public works intended to augment the economic prosperity of the country, in case the Haitian Government should succeed in its efforts to finance such works.

Please accept [etc.]

Georges N. Léger
  1. Not printed.
  2. Executive Agreement Series No. 128, or 53 Stat. 1923.