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

Participants: Mr. Warren Lee Pierson, of the Export-Import Bank, (the meeting was held in his office), Mr. Arey, Finance Minister Lacroix, Minister Dennis, Mr. Garcia, of the Haitian Legation, Mr. Collado,18 Mr. Hooker19 and Mr. Barber.

Minister Lacroix reviewed the fiscal and budgetary situation as it had been portrayed in President Lescot’s letter to the Under Secretary and his own memorandum to Mr. Bonsai.20 In reply to Mr. Pierson’s specific inquiry, Minister Lacroix said that he had no specific request to make except that assistance was needed, for the Haitian budget in view of shipping shortages upon which the budget was so dependent for revenues derived from import and export duties.

After a brief discussion regarding the terms of the credit Minister Lacroix said that he would telegraph the President regarding an arrangement along the following lines: (1) A credit of $500,000 to be made available when needed. (2) Sympathetic consideration for an increase in the amount, if and when it proved to be necessary. (3) The Export-Import Bank to receive as collateral the note of the National Bank of the Republic of Haiti guaranteed by the Haitian Government. (4) Interest to be at the rate of 3.6 per cent. (5) Repayment to be over a period of five years; 10 per cent of the amount to be repaid semi annually and with the right to make prepayment.

It was agreed that another meeting would be held at Mr. Pierson’s office at 10:00 o’clock on July 14, when Minister Lacroix would have received an answer from his Government.

  1. Emilio G. Collado, Special Assistant to the Under Secretary of State; also Executive Secretary of the Board of Economic Operations of the Department of State.
  2. John S. Hooker, Assistant Executive Secretary of the Board of Economic Operations of the Department of State.
  3. Philip W. Bonsai, Chief of the Division of the American Republics; memorandum not printed.