710. Consultation (2)/465a
The Department of State to the Haitian Legation
Memorandum
The Government of the United States is sincerely desirous that something “good and substantial” will result for all countries from the Habana Conference. It trusts, however, that the Haitian Government will not wish to predicate its participation in the Conference on the attainment of the points raised by Mr. Dennis.
With regard to lowering the interest rate on Haiti’s outstanding indebtedness, this Government has never interposed any objection to any legitimate refunding operation by which Haiti would benefit; in fact, it would welcome the opportunity thereby afforded of divesting itself of any responsibility for the collection and disbursement of the Haitian customs revenues. In case money were found with which to call these bonds, it would be unwilling again to assume the same commitment for any new bonds which might be issued by Haiti. Thus the Haitian Government is, of course, entirely free to endeavor to effect any refunding operation which it can arrange.
It may also be pointed out that the service on the Haitian debt has already been substantially reduced by the suspension of amortization payments, except for a small token payment.
With regard to the suggestion that the United States reduce its customs duties on a number of articles of Haitian origin, Mr. de la Rue has submitted a list of such articles to the Division of Commercial Treaties and Agreements which is now studying the question.
In so far as concerns the Haitian customs tariff, it is true that this has been established largely on a fiscal basis. The Department feels sure that any concrete proposal for changes in the customs tariff which [Page 892] the Haitian Government may desire to submit will be examined attentively by the Fiscal Representative.
Mr. de la Rue and the Department have been giving serious thought to the Haitian budget. It is believed that the former has reached no conclusion regarding the specific ways, if any, in which Haitian revenues may be increased and expenditures diminished. Since he will wish to begin the preparation of his budget about August 1, he should be in a position to present his ideas to President Vincent at about that time.
President Vincent has already been informed of this Government’s willingness to continue J. G. White expenditures throughout the next fiscal year at the rate of $160,000 a month.18 He has also been advised that funds will be spent on the improvement of air facilities. It is indeed possible that other ways of aiding Haiti can be found as we go along. Moreover, the general question of measures of economic cooperation among the American republics will be taken up at the Habana meeting.
With regard to President Vincent’s wish to have a financial adviser, the Department is unable to comprehend the President’s wishes since the Fiscal Representative is supposed to perform the very functions which it would appear the President seems to have in mind for the financial adviser.