811.20 Defense (M)/15837f: Telegram

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

178. [From Allen.] Pursuant to conversations we have recently had and in accordance with the SHADA Cryptostegia contract dated the 26th of October, 1942,11 paragraphs 18 and 13, notice is hereby given of the cancellation by RDC of the said contract, with cancellation becoming effective 30 days from the date of the receipt of this cable.

Negotiations, as you know, are pending by which the cancellation conditions specified in paragraph 13 of the said contract may be altered, and from which certain additional understandings may arise.

Rubber Development Corporation expects that all further expenditures in the meantime which are connected with the program will be limited to the minimum amount absolutely necessary to protect the interests of this Corporation until the date on which cancellation becomes effective, at which time there will be an end to all expenditures except to the extent that mutual agreement may be reached on further expenditures, it being understood, however, that this Corporation’s policy is to effect liquidation of the project in an orderly manner so that all Haitian and American personnel receive considerate and fair treatment and with regard to Haitian labor, an avoidance of abrupt measures by which political difficulties might be caused.

Discontinuance by you of the experimental work outlined in the memorandum of Dr. Curtis12 which I discussed with you when I was recently in Haiti is not intended, since it is contemplated that RDC and SHADA will enter into a new contract on this subject. It is suggested that at this time no auditing or accounting personnel be discharged since the cancellation will involve considerable auditing and accounting work.

It is requested that you send a cable acknowledging that this cable has been received, and informing me of the date on which you receive this cable.

Foregoing from Allen, Rubber Development Corporation for SHADA.

  1. Not printed; see footnote 2, p. 1169.
  2. Dr. John T. Curtis, director of the agricultural research station at Gonaives, Haiti; memorandum not found in Department files.