839.51/4724

The Acting Secretary of State to President Roosevelt

My Dear Mr. President: I enclose a draft letter in reply to a communication addressed to you by General Trujillo, Chief of Staff of the Dominican Army and former President of the Republic, in which the suggestion was made that the aspirations of the Dominican Government with respect to the liquidation of the existing special financial relationship between that Government and ours would in large measure be met should you agree either to appoint a Dominican citizen as Receiver General of Dominican Customs or else to leave that post unfilled.

Faithfully yours,

Sumner Welles
[Page 586]
[Enclosure]

Draft of Reply to Communication From the Chief of Staff of the Dominican Army (Trujillo)

My Dear General Trujillo: In acknowledging the receipt of your letter of July 26, 1939, I desire to say that the officials of this Government have been only too glad to extend to you friendly courtesies. I am pleased that you found your stay in this country enjoyable.

Your reiteration that the foreign policy of the people and Government of the Dominican Republic is pledged to the aims of continental solidarity cannot but evoke a feeling of gratification on the part of this Government.

I sincerely appreciate your frankness in making your suggestion with respect to the existing Convention of 1924 between the Dominican Republic and the United States and wish to assure you that for my own part personally, I welcome them in the spirit in which I know they have been made. I feel sure that you realize that this Government no less than that of the Dominican Republic has been desirous of finding a solution which would, while honoring the contractual obligations of both Governments towards third parties, clear away the remaining vestiges of the former special financial relationship between the two countries.

While the method that you suggest, namely, that the President of the United States either appoint a Dominican citizen as Receiver General of Dominican Customs or else leave that post unfilled, has much to recommend it on the grounds of simplicity, such a solution could only be partial in its effects.

Under the Convention of 1924, and in the contracts of the Dominican external bonds, the two Governments assumed certain responsibilities toward the purchasers and owners of these bonds. Merely to appoint a Dominican citizen as Receiver General of Dominican Customs, even were that gesture satisfactory to the Dominican people and Government, would not in effect transfer any of the responsibility of the Government of the United States to the Dominican Government, which has been one of the chief objectives of both Governments. Furthermore, it is my understanding that there are several other provisions of the Convention, including that mentioned by you with regard to alterations in the Dominican Customs Tariff, which stand in need of revision.

It was with the view to effecting a complete revision of the provisions of the Convention of 1924 in an effort to respond to the aspirations of the Dominican Government and people while safeguarding the obligations assumed towards the holders of Dominican external bonds, that the Government of the United States first agreed to undertake [Page 587] negotiations for a new instrument which might be substituted for that Convention.

It was my hope that these informal negotiations, which had proceeded to what was believed to be the point of mutual agreement, might be brought to a successful conclusion.

Finally, I need hardly bring to your attention the fact that while the Executive Branch of this Government is charged with the responsibility of negotiating treaties and conventions, under our Constitution it must submit these instruments to the Senate for its advice and consent.

In closing may I take the opportunity again to assure you that this Government is sincerely desirous of concluding an agreement to replace the Convention of 1924 which will respond to Dominican aspirations and will dissolve the remaining direct financial relationship between the two Governments without prejudice to the interests of third parties. To this end this Government is prepared either to continue with a discussion of existing proposals or to examine with sympathetic understanding any new proposal which may be proffered by the Dominican Government.

Very sincerely yours,