838.51/9–1947
Memorandum of Conversation, by Mr. Charles C. Hauch of the Division of Caribbean Affairs
| Participants: | Mr. Lucien Hibbert—Director of the University of Haiti and Former Finance Minister |
| Mr. Robert F. Woodward, ARA24 | |
| Mr. Hauch—CRB |
Following Mr. Hibbert’s call at the Export Import Bank on September 17, further discussion on his proposal was held by Assistant Secretary Armour and other officers of the Department. It was decided that Mr. Hibbert should be received again by Departmental officers in an effort to explain to him why the door is not closed on consideration of an Export-Import Bank credit for Haiti and to assure him of this Government’s sympathy with Haiti’s problems.
Accordingly, Mr. Hibbert was received by Mr. Woodward and myself, and a two and one-half hour discussion ensued touching on many aspects of Haiti’s past and her present problems. Mr. Woodward assured Mr. Hibbert of our sympathy and desire to cooperate with Haiti, and said the problem was to find the means of doing this. He said that the Export-Import Bank was the only agency which could make [Page 730] a loan to Haiti and that the only basis on which the Bank was prepared to consider such a loan was set forth in its memorandum of March 7, 1947.25
Mr. Hibbert reiterated that this memorandum did not offer a satisfactory approach to the Haitian Government, for reasons set forth during his conversation with Mr. Maffry of the Bank (see Department’s Memorandum of Conversation of September 17 entitled “Proposed Export-Import Bank Loan to Haiti”). He then discussed Haiti’s criticisms of previous Export-Import Bank loans to Haiti. This afforded an opportunity for Mr. Woodward to state that this was precisely what we wished to avoid in our future relations with Haiti, and that consequently, we wished to be careful about the terms and conditions on which any future loan might be made. Mr. Woodward specifically referred to certain statements made in the notes of the Haitian Financial Mission visiting Washington last winter charging the United States with intervention and responsibility for injuries to Haiti’s economy. He also referred to Ambassador Charles’ recent statement to a press conference as reported in article by James L. Tuck entitled “Haiti—America’s Test”. Ambassador Charles was quoted as stating: “One cannot question the good intentions of the United States, but every time the United States has tried to help us, they have increased our confusion and poverty instead of lessening it.” Mr. Hibbert made no reply to Mr. Woodward’s statements other than to say that certain United States Government projects in Haiti had been beneficial to that country.
The discussion then passed to consideration of an informal list of projects Mr. Hibbert had prepared for further study and possible submission to the Export-Import Bank in connection with a loan request. A list of these projects is appended.25 Mr. Hibbert stated he considered projects 1, 2 and 5 of the most importance for Haiti.
In reference to the first numbered project, i.e. the development of the Artibonite Valley and the Hinche Plateau, Mr. Hibbert again inquired whether any assistance in developing this project as a loan possibility could be obtained from this Government. Mr. Woodward inquired as to whether the Haitian Government itself did not have technical experts capable of presenting the plan, to which Mr. Hibbert replied in the negative. Mr. Woodward then suggested that it might be possible for the IIAA’s food mission in Haiti to work with the Government in surveying and developing this project. He added that our Embassy would be glad to give informal advice and assistance and mentions specifically Ambassador Tittmann’s sympathy for and [Page 731] his interest in the problems of Haiti and Agricultural Attaché Tanner’s technical abilities in the agricultural field.
Mr. Hibbert felt this was a worthwhile suggestion and said he would discuss it with President Estimé. He wondered whether it might not be possible to secure the services of some other expert recommended by the United States to assist in any such survey. Mr. Woodward said he felt that the beginning should be by personnel presently in Haiti and added that any sending of additional experts to Haiti might cause undue hopes to be aroused in that country. I cautioned Mr. Hibbert that even after any such survey and plan were completed, there would be no guaranty that the Export Import Bank would consider it favorably as the basis for a loan. It was emphasized throughout the discussion that any advice given the Haitian Government by the IIAA or the Embassy on this matter would be informal and that responsibility for the plan would rest with the Haitian Government.
Mr. Hibbert then discussed his second proposed project, i.e., the development of the Tourist business in Haiti. He wished to have some tourist expert sent to Haiti to survey possibilities in this field. Mr. Woodward stated this would appear to be a project on which the advice of the transportation companies might profitably be sought, since they are interested in increasing travel. It was obvious this did not satisfy Mr. Hibbert who persisted in his idea of a United States Government-sponsored expert to give advice to Haiti on this problem. Mr. Hibbert inquired regarding the attitude of the Bank on a loan for this purpose and was told that of course the Department could not speak for the Bank. It was pointed out, however, that the Bank had advanced funds for the construction of the Jaragua Hotel in the Dominican Republic. Mr. Hibbert stated that Mr. Armour had expressed considerable interest in tourist possibilities in Haiti.
Mr. Hibbert passed over points 3 and 4 and stated that he personally considered point 5 to be of the most importance. This called for financial assistance in taking what would be the first complete census in Haiti in 1950. He felt the information obtainable in such a census was absolutely essential before any basic economy projects could be planned. He estimated the cost of the census at a million dollars, and stated Haiti expected to have the assistance of a United States census expert. It was pointed out to him that obtaining a credit from the Export Import Bank for this purpose seemed highly doubtful, although the Department of course could not speak for the Bank. In this connection it was noted that taking a census in itself was not an income-producing undertaking and the Bank in general requires that projects on which it loans money have a more direct effect in improving the economy of the country and in providing the means for repaying the [Page 732] loan. It was pointed out that financing a census is usually a regular charge on the government’s revenues. Mr. Woodward wondered whether it was worth $1,000,000 to Haiti to take a census.
In the course of the conversation Mr. Hibbert made reference to the loans the United States has made to European countries and stated that the Haitian public was sometimes unable to understand why we were willing to advance money to other countries but not to Haiti. In reply, he was again informed that the Export Import Bank stands ready to make loans to the American Republics under certain circumstances. As for other economic assistance, reference was made to Secretary Marshall’s comments at the Rio Conference27 and the fact that plans for economic cooperation among the American Republics will be one of the subjects on the agenda of the Bogotá Conference. Mr. Hibbert did not appear impressed, and stated Haiti’s need was of an immediate character in view of the rising cost of living and the concentration of underpaid wage earners in the cities.
Mr. Hibbert seemed somewhat uncertain at the close of the conversation as to the recommendations he should make to President Estimé. He thought he might discuss the Artibonite project with him as an Export-Import Bank loan possibility, but on the other hand felt the Bank’s conditions for making a loan were distasteful to Haiti. He said that his recommendation might well be that Haiti should “tighten its belt” and proceed on its own initiative and resources.