838.51/4031: Telegram

The Chargé in Haiti (Sparks) to the Secretary of State

153. With reference to the Department’s telegram No. 147, September 12, 3 p.m., the Fiscal Representative states that he and the other officers and employees of his service and the customs service voluntarily submitted to the present salary reduction as they had already done on two previous occasions. He adds that with this saving and other substantial economies the balance in the 5% operating fund with accruals at present rates will permit these services to continue without further economies for at least 5 months.

However, what concerns the Fiscal Representative is not the present rate of salary reduction but the rate that would be necessary if new revenues are not found to replace the shrinkage occasioned by the inability to market coffee and an effort is made to balance the budget solely by this means. His preliminary calculations indicate that this percentage might have to be as much as 25 to 35% for all Government services. He declares that while it has been his policy voluntarily to accept for his services the same reduction applied to other Government services he would not be prepared to accede to such a large reduction since it would completely disrupt his services.

Sparks