A note dated June 12, 1939, has just been received from the Haitian
Foreign Office requesting the extension for one year of the moratorium
which resulted from the Accord of July 1, 1938.17 This note with translation is
enclosed.
The Department’s suggestion to insert “and such amounts as may be deemed
necessary by the Fiscal Representative, etc.” in the body of the note
has been slightly altered in the note so as to read “and such amounts as
may be deemed necessary by the Secretary of State for Finance in accord
with the Fiscal Representative, etc.”
[Enclosure—Translation]
The Haitian Minister for Foreign Affairs
(Laleau)
to the American Minister (Mayer)
Port-au-Prince, June 12,
1939.
Mr. Minister: Since the letter of June 14,
1938,19 from my
Department, the situation in the Republic of Haiti has not changed
materially, and I am therefore obliged to request your Government to
accept prolongation of the Accord of July 1, 1938, for another
year.
Haiti is obtaining a better comparative price for her coffee, but the
size of the crop seems to have suffered a permanent reduction. The
cause is not known, but it is generally ascribed to over aged trees.
The five-year average of exports of coffee has fallen from
31,919,197 kilos at the end of the fiscal year 1933–1934 to
27,803,960 kilos at the end of the fiscal year 1937–1938. On the
other hand, banana production is increasing, and exports will
probably reach 2,200,000 stems this year, or an increase of 837,000
stems in comparison with the exports of last year. Sugar prices have
improved somewhat, but an export quota has been fixed which
precludes much help from that source of revenue. Cotton is still
subject to attack from the Mexican boll weevil, and unless this year
brings another drought, which is unfavorable to the boll weevil,
increased damage to our cotton is expected. Furthermore, both cotton
and sisal are quoted at depressed prices.
At the end of April revenues had failed to meet estimates by Gdes.
842,559.06. If a further reduction in an already inadequate budget
is to be avoided, revenue trends must change from those existing
from October through April, 1939; inasmuch as the treasury balance
is inadequate to meet such a deficit, continuing unsatisfactory
revenues will require a reduction in expenditures approximating the
amount of the deficit in the budget of ways and means.
The May receipts have been raised in an abnormal fashion exceeding
the average, with reference to this month, of better years. This is
perhaps due to certain unexpected and extraordinary factors. For
example, a large importation of gasoline, a large importation of
material for the J. G. White Company20 and exportations of
coffee bought
[Page 648]
during the
past few months but held for preparation over and above the ordinary
time for expedition.
I cannot therefore hope that this exceptional situation of the month
of May may continue, nor that it might be the proof of a permanent
state of Haitian Government receipts. It is why at the present
moment our firmest desire is to be in a position to adopt a budget
for the fiscal year, 1939–1940, which will not require any further
reductions in our reduced appropriations for the essential public
services.
As a result, however, of the friendly attitude that the holders of
the bonds of the 1922 loan have always shown towards the Haitian
Government and of their desire to maintain its credit at the highest
point, I can assure your Government that all additional receipts
which we will collect during the fiscal year 1939–1940 over and
above the amount carried in the budget 1938–1939 and all other
amounts which may be deemed necessary by the Secretary of State for
Finance, in accord with the Fiscal Representative, to be expended as
extraordinary appropriations to meet serious emergencies, will be
employed for the amortization of the 1922 [loan?].
In requesting your Government to agree to prolong the Accord of July
1, 1938, for a duration of one year, the Haitian Government confirms
its willingness to continue to execute during the period of
prolongation, all the obligations contained in the letter from my
Department of January 11, 1938.21
I take [etc.]
