838.51/4140: Telegram

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

14. Department’s telegram No. 24, January 28, 7 p.m. In a conference this morning with the Minister for Foreign Affairs and Finance,11 the Fiscal Representative and myself, President Vincent declared that while Lescot had reported that an understanding had been reached between him and Francis White12 the Council has not replied to the request of the Haitian Government for a reduction of 2 percent in the interest rate on the 1922 bonds.

Upon questioning as to the nature of the understanding President Vincent believed that it was for a postponement and not a definitive reduction. President Vincent declared that while he considered a definitive reduction essential he would agree to the postponement affecting the April and October coupons but that he hoped that a committee could be formed immediately for the purpose of considering a definitive reduction. Since he is unable to foresee at this time when the postponed interest might be paid he suggested the immediate conclusion of an accord covering interest payments from October 1, 1940 to December 31, 1941 at the rate of 4 percent—the remaining 2 percent to be made the subject of negotiations with the bondholders.

President Vincent expressed the hope that the Department would be willing to use its good offices with the Council.

  1. Fernand Dennis.
  2. President of the Foreign Bondholders Protective Council.