838.51/9–1747
Memorandum of Conversation, by Mr. Charles C. Hauch of the Division of Caribbean Affairs
| Participants: | Mr. Maffry, Export-Import Bank |
| Mr. Lucien Hibbert—Director of the University of Haiti and former Finance Minister | |
| Mr. Hauch—CRB |
Following Mr. Hibbert’s call on Assistant Secretary Armour on September 9 (see Department’s Memorandum of Conversation of that date entitled “Proposal for Export-Import Bank Loan to Haiti”23), Mr. Hibbert’s memorandum presented at that time was considered by the interested officers of the Department and the Export Import Bank. Although it was felt that there was little the Bank could do other than to refer Mr. Hibbert to its memorandum of March 7, 194723 in replying to the request of the Haitian Financial Mission for a $20,000,000 loan, it was decided after discussion with Mr. Armour to have Mr. Hibbert received by Mr. Maffry of the Bank.
Accordingly, I accompanied Mr. Hibbert to the Bank on September 17. Mr. Maffry confirmed the Bank’s previous position that in order for it to consider any loan proposal from Haiti, the Haitian Government must present it with a well-justified and thought out project. Mr. Hibbert said that this approach was impossible for the Haitian Government because (1) it did not have the funds to have a private or technical organization undertake a survey and justification of this type and (2) the publicity attendant on any such survey being made would have unfortunate results if a request for a loan were turned down by the Bank after time and money had been spent on the survey. Consequently, he wished the Department and/or the Bank to arrange to have an economic mission go to Haiti and help the Haitian Government decide which projects should be undertaken. Mr. Maffry said it would be impossible for the Bank to participate in a survey of this kind and that having such a survey made was the Haitian Government’s responsibility. He said he could give to Mr. Hibbert the names of several persons or firms whose ability to make a survey of this kind was known to the Bank. Mr. Hibbert evinced no interest in pursuing the matter further, and consequently no names were given to him.
Mr. Hibbert emphasized the “guaranties”, which he had outlined in his memorandum. These included certain provisions whereby the management of SHADA would be turned over to the Bank and [Page 729] SHADA’s income would be used to repay the loan, as well as a pledging of returns from the sisal export tax to this end and the organization of the National Bank of Haiti in such a way as to protect the Export-Import Bank’s investment. Mr. Maffry said that these “guaranties” were not required by the Bank and that the Bank would not consider making a loan on these terms. He said the Bank’s requirements were that the project be sound from the Bank’s point of view and that the Bank have confidence in the ability and promise of Haiti to repay the loan. He added that these “guaranties” would not get Haiti any more favorable treatment than she would receive without them. He emphasized further that the Bank in no circumstances would undertake the administration of SHADA. To this Mr. Hibbert replied that the Bank is in effect already managing SHADA.
Mr. Hibbert stated he considered the Bank’s attitude to be a complete shutting of the door in Haiti’s face as regards the possibility of a loan. Mr. Maffry said it did not seem so to him in view of the Bank’s memorandum of March 7, but Mr. Hibbert said it was quite impossible for Haiti to proceed on the terms of that memorandum.