839.51/4738

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

Mr. Norweb called me from New York this morning at about 10:30 to say that he had just returned from seeing off General Trujillo on the Normandie, where he was occupying the Deauville suite, the most luxurious accommodations on the vessel.

Mr. Norweb said that he had had an opportunity to discuss at some length with General Trujillo the question of the revision of the Convention of 1924. General Trujillo stated that while the Dominican Government was very anxious to establish a Dominican national bank on the basis of a purchase of the Dominican branches of the National City Bank of New York, it did not wish to surrender financial control of this proposed national bank to a board of directors with predominantly American membership. Apparently, however, he was quite willing to have the bank collect the customs and to have that part of the organization of the bank which did collect the customs under American control. General Trujillo stated that he was much gratified at the cordiality of the reception accorded him in the United States, and referred in particularly warm terms to the Secretary of State.

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He told Mr. Norweb that he and Sr. Pastoriza had had an opportunity at the reception at the Dominican Legation on July 27 to discuss the proposed convention with the Secretary, and that the latter had stated that upon his return from his vacation he would be prepared personally to give consideration to the matter. General Trujillo added that in a subsequent conversation between the Dominican Minister and the Secretary of State the following day, the Secretary had confirmed to Sr. Pastoriza his intention of giving personal consideration to the proposed convention upon his return from vacation.

Mr. Norweb stated that the General and Sr. Pastoriza appeared to lay particular stress on these statements attributed to the Secretary, and that the General had instructed Sr. Pastoriza to forego his leave at the present time and to await instructions from President Peynado from the Dominican Republic.

General Trujillo informed Mr. Norweb that he had been advised by his counselors in the Dominican Republic to avoid taking the lead personally in the negotiations and to have them conducted through regular channels by reference to the present Dominican Government, subject of course to the General’s approval. The General stated that he was returning to the United States sometime in October on his way back to the Dominican Republic and hoped that negotiations would have reached a point of agreement by that time. He told Mr. Norweb that he believed that there was still room for negotiation upon the basis of the existing drafts, but that in case this was not possible, the Dominican Government would submit through Pastoriza an entirely new proposal based upon the considerations which he, General Trujillo, and Sr. Pastoriza had outlined informally to Mr. Duggan on the occasion of their call at the Department of State earlier in July.

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S[elden] C[hapin]