Memorandum of Conversation, by Mr. Willard F. Barber of the Division of the American Republics

Participants: Mr. Warren Lee Pierson, President of the Export-Import Bank (Meeting held in his Office).
Mr. Arey, of the Bank.
Mr. Lee Baron, of the Bank.
Mr. Whittemore, of the Bank.
Mr. W. H. Williams, of the National Bank of Haiti.
RA—Mr. Barber.

Mr. Pierson and Mr. Williams discussed the general financial and revenue situation with which the Haitian Government is confronted, in view of present shipping shortages and the resulting diminution of export and import duties on which Haitian revenues are so largely based. Mr. Williams stated that new taxes were contemplated in order to increase the Government’s revenues, but that he felt it imperative to have a reserve fund on which to rely in case of dire [Page 467] emergency. This emergency fund would not be tapped unless it were found absolutely necessary, and it was Mr. Williams’ hope and desire that no use of the funds would prove to be necessary.

After further discussion, Mr. Pierson agreed that a commitment, in the amount of $500,000, would be made for two years’ time from the Export-Import Bank to the National Bank of the Republic of Haiti. The commitment could be styled a “Dollar Exchange Credit to the Haitian Central Bank”. The form of the commitment would be a letter from the Export-Import Bank to the National Bank of the Republic of Haiti.

Mr. Williams stated that he would make it abundantly clear to President Lescot, as had already been done, namely, that there was to be no increase in the Haitian budget, which would result in a call upon the emergency commitment.