Foreign Relations of the United States Diplomatic Papers, 1939, The American Republics, Volume V

839.51/4721

Memorandum of Conversation, by the Assistant Chief of the Division of the American Republics (Chapin)^5a

[Washington,] July 25, 1939.

Mr. W. W. Lancaster⁶ called me yesterday afternoon about five o’clock to say that he had just concluded an hour’s conversation with Señor Pastoriza, the Dominican Minister, who had informed him that he was accompanying General Trujillo to Washington Tuesday morning. He said that the General was prepared to proceed actively with negotiations on the basis of the proposed Dominican Bank Plan for the modification of the 1924 Convention, and is willing to stay as long as two weeks, if necessary, in order to clear up any remaining difficulties.

Señor Pastoriza indicated to Mr. Lancaster that the only real point at issue was the method of selecting the Board of Directors of the proposed Dominican National Bank. He said that the Dominican Government had experienced considerable difficulty with the present fiscal agents, the Guarantee Trust Company, who were very “technical”. When I inquired of Mr. Lancaster whether the possibility of substituting the National City Bank for the Guarantee Trust Company had been discussed, he said that as far as the National City Bank was concerned, while they would be willing to serve if pressed, they would prefer to keep clear of the whole structure. In this connection, Mr. Lancaster said that General Trujillo had observed to Mr. Henneman⁷ that “the Dominicans did not propose to buy the branches of the National City Bank merely to have that Bank run them”. When informed by Señor Pastoriza that Mr. Henneman had always actively opposed the sale of the Dominican branches to the Dominican Government, since he felt they were a source of profit to the National City Bank, General Trujillo then sent word through Lancaster to the effect that he had not meant to be as abrupt in his statement.

Mr. Lancaster stated that he had suggested to Señor Pastoriza that the original board might be constituted by an informal exchange of notes between the Dominican and American Governments. This suggestion was apparently acceptable to Pastoriza. However Mr. Lancaster stated that he did not have any suggestions to offer as to the method of perpetuating the Board of Directors.

It is my understanding that Señor Pastoriza will get in touch with the Department of State shortly after his arrival today.

1. Addressed to the Chief of the Division of the American Republics and the Under Secretary of State.
6. Member of the New York law firm of Shearman and Sterling, counsel of the National City Bank of New York.
7. Harry Henneman, vice president, National City Bank of New York.