838.20/10–1352
Memorandum of Conversation, by William B. Connett, Jr., of the Office of Middle American Affairs1
Subject:
- SHADA
- Participants: Ambassador Jacques Léger, Haitian Embassy
- Mr. Rene Colimon, Minister-Counselor, Haitian Embassy
- Mr. Alexandre Dominique, Haitian Finance Minister
- Mr. Georges Cadet, Shada Director
- Mr. Arthur Herres, Shada Director
- Mr. Thomas C. Mann, ARA
- Mr. Jack Neal, MID
- Mr. Harvey R. Wellman, MID
- Mr. W. B. Connett, Jr., MID
In the course of an informal cocktail party in honor of SHADA, Mr. Mann referred to Ambassador Léger’s oral request for advice on how to proceed in replying to Mr. Gaston’s offer to reduce the interest on the Shada loan to 2 per cent. Ambassador Léger at that time indicated that Mr. Dominique and the other members of the Shada Mission were disappointed with the offer and that he, the Ambassador, considered that an effort should be made to obtain a better offer from the Bank if this were possible, in view of what he described as the precarious political and economic situation in his country.
Mr. Mann said that he had spoken with Mr. Gaston who had indicated that he woud be willing to discuss the matter further with the Haitians to see whether something could be done. Mr. Mann suggested that Ambassador Léger and Mr. Dominique request an appointment with Mr. Gaston to discuss the terms under which a loan could be amortized. He suggested that in this conversation the Haitians address themselves to the question of finding a constructive solution to the problem rather than to a reiteration of their opinions concerning responsibility for past events.
Mr. Mann stated that the Bank and the Department were in agreement that a cancellation of the principal indebtedness should not be [Page 1251] considered and that the problem was to find a formula consistent with this determination.
Mr. Mann further stated that the problem of how Haiti would repay this loan was of course a problem for the Haitians themselves to decide, and that both the Bank and the Department hesitated even to offer any suggestions in view of the possibility that the Haitian Government might at some later date contend that the suggestions were tantamount to duress. He said, however, that if the Haitians wished to discuss this question with the Department it was his personal and unofficial opinion that something along the following lines might be worked out:
- 1.
- A formula agreeable to the Bank and to the Haitian Government concerning the amortization of the principal debt.
- 2.
- A reorganization of Shada under which the Export-Import Bank would be relieved of any responsibility for future operations and where the control would be in the hands of the Haitian Government.
- 3.
- Abandonment of that part of the sisal operations which would be determined by competent experts to be uneconomic and concentration on that part of Shada’s operations which might be found by disinterested experts to have good possibilities.
- 4.
- Seek TCA assistance in employing top managerial and technical personnel so as to reduce overhead expenses of Shada.2
Mr. Mann said that if the Haitian Government should proceed along these lines and see to it that Shada is well-managed it might be possible to pay the debt to the Export-Import Bank without further drains on the Haitian treasury. Mr. Mann emphasized again that these were personal thoughts and very tentative, and that the Department was not prepared to make any commitments at this time.
- Drafted by Mr. Connett, with the assistance of Mr. Mann.↩
- In a memorandum of conversation between Messrs. Dominique, Léger, Cadet, and Deputy Assistant Secretary Mann, by Mr. Connett, dated Oct. 30, 1952, Finance Minister Dominique was reported to have stated that IIAA seemed favorably disposed to consider requests for technical personnel to assist SHADA (838.20/10–3052).↩