838.24/12–2947: Airgram

The Acting Secretary of State to the Embassy in Haiti

confidential

A–287. In the absence of relevant advices from you since your talks in the Department last October when it was understood that you would initiate informal action to secure the payment of the $20,000. obligation outstanding under the Haitian lend-lease agreement37 the status of the account is unchanged.

Fiscal offices continue to report total aid furnished as $1,342,308.22 whereas agreement authorized “about $1,100,000”. Full repayment responsibility under agreement is $60,000. of which $40,000. has been paid; however, no proposal for settlement for the value of over-deliveries has been made to date.

The Department is very desirous of concluding settlements for all outstanding unresolved lend-lease matters soonest possible. Therefore, with sympathetic understanding of Haiti’s financial position and after consultation between interested offices, the Department is now willing to offer to the Government of Haiti those materials which were furnished at its request although in excess of the agreement limitation at approximately the same repayment rate as applied under the agreement. In actual figures, for such over-deliveries, valued at $242,308.22 under procurement prices, the Department is willing to accept in full [Page 737] payment the sum of $13,000. and will consider the payment now of the aggregate sum of $33,000. as a full and final settlement of all lend-lease responsibility of the Government of Haiti with the sole exception of that concerning the Coast Guard Cutter which was leased under Charter Party and will be offered for sale as a separate transaction.

You are requested to bring this proposal to the attention of the appropriate officials of the Government of Haiti. As it is believed that a prompt settlement of the lend-lease account would benefit Haiti’s credit position in the United States it is suggested that you stress the fact that this consideration proved an important factor in reaching final determination to extend these favorable terms. It is further suggested that, if you perceive no objection, preliminary conversations with Mr. Daniel Théard, Secretary of Haitian Embassy here and due in Port-au-Prince for the holidays, might prove helpful in developing eventual action.

Lovett
  1. For the Lend-lease agreement between the United States and Haiti, signed at Washington, September 16, 1941, see Foreign Relations, 1941, vol. vii, p. 319.