838.51/4148a: Telegram

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

28. In your discussions with the Haitian Government concerning the proposed reduction in the interest rate on Haitian bonds, the Department [Page 326] assumes that you have already made it clear that this course is not being urged upon the Haitian Government. It is felt that in particular the Haitian Government in making its decision should not entirely overlook the possibility that a partial default in the interest payments, even if it were satisfactory to the Foreign Bondholders Protective Council, might prejudice the practical possibility of opening the discussions, in which it is understood the Haitian Government is interested for the revision of the Accord of 1933.

In bringing these considerations to the attention of President Vincent you may say that it is not the intention of the Department to discourage the Haitian Government from proceeding with its negotiations for such a reduction as it deems necessary in the interest rate, but on the other hand, it feels that the Haitian Government should not overlook the consideration above set forth.