838.51/4078: Telegram
The Secretary of State to the Chargé in Haiti (Sparks)
166. Your 175, October 9, 7 p.m., and 176, October 10, noon. The Department believes that it is essential that a budget be promulgated at once in order that the salaries of Haitian Government employees may be paid or discounted and to clear the atmosphere. It will obviously not be possible during the next few days to prepare a reasonably accurate budget which would be in balance without including an item of anticipated proceeds of a loan related to coffee. Inclusion of such an item could not be approved at this time by the Department although this Government and the Inter-American Financial and Economic Advisory Committee are devoting every effort to the conclusion of broad coffee arrangements.43
You are accordingly instructed to inform the President that the Department because of the special circumstances existing has modified its views with respect to the fiscalization of the communal revenues and the reduction of the pay of new enlistments in the Garde d’ Haiti, as set forth in the note which you delivered to the President [Page 915] on October 6, pursuant to the Department’s no. 160, October 5, 1 p.m. You are further instructed to enter into a special agreement, in accordance with Article XIII of the Accord of August 7, 1933, whereby there may be promulgated a budget temporarily unbalanced by an amount not to exceed 2,000,000 gourdes. You should make it absolutely clear that this unbalance shall be of a temporary character only, pending the conclusion of the current coffee discussions in the Inter-American Financial and Economic Advisory Committee.