Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

611.38/11–1053

Memorandum by the Director of the Office of Middle American Affairs ( Burrows ) to the Deputy Assistant Secretary of State for Inter-American Affairs ( Woodward )¹

confidential

[ Washington ,] November 10, 1953.

Subject:

• Current U.S.-Haitian Problems

By memorandum of November 3, which is attached,² your attention was invited to a recent despatch³ from Ambassador Davis touching on four important problems in our relations with Haiti. Your pencilled note asks whether any action is recommended with respect to these problems. The following comments will answer your question:

(1) Reduction of Haiti’s annual contributions to the Eximbank-financed Artibonite Project: A letter from General Edgerton to Ambassador Leger dated November 3⁴ asks the Haitian Government whether, in view of the doubts expressed by Finance Minister Hibbert, it wishes to: (a) liquidate the project, (b) continue as planned, or (c) reschedule the activities so as to lower annual costs. Pending an answer to this letter no further action would seem warranted.⁵

(2) Haitian interest in private financing for public works: Action on our part would not seem appropriate because: (a) negotiations are being carried out directly with private U.S. construction and banking firms by the Haitian Government; and (b) it might not be in our best interest to encourage Haitian Government to seek to finance additional public works at a time when it says it cannot afford to pay for the Artibonite Project.

(3) Haitian hope of reducing Shada indebtedness: A year ago the Haitians sent a special mission to Washington to negotiate a settlement of the Shada crisis. The Department lent its good offices with the Eximbank, and the Haitian Government received considerable relief in the form of funding arrangements, a moratorium on interest, etc. It would not seem advisable to reopen this issue now and it is very doubtful the Bank would agree to a better deal for the Haitians.

(4) Problems of U.S.-owned power company:⁶ Embassy Port-au-Prince, on the Department’s instructions, recently lent its good offices in bringing officials of the parent company together with the Haitian President, who displayed a reasonable attitude. It remains now for the Company and the Haitian Government to try to reach an agreement. For the present, there would seem to be no reason for the Department to intervene.

1. Drafted by Mr. Connett.
2. No attachment was found with the source text.
3. Not identified.
4. Not printed (838.2614/11–553).
5. In a memorandum for the files, dated Dec. 1, 1953, Mr. Connett stated that the Export-Import Bank had informed him that it had received a reply from the Haitian Government to General Edgerton’s letter of Nov. 3. According to the Bank, the reply indicated, inter alia, that despite budgetary problems the Haitian Government was determined to proceed with the Artibonite project as planned, and also that although the Government had budgeted $2 million for the project for FY 1954, it wished to have its annual contribution to the project “average” $1.5 million (838.2614/12–153).
6. Apparent reference to the Electric Light Company of Port-au-Prince (Compagnie d’Eclairage Electrique des Villes de Port-au-Prince et du Cap-Haitien) which wanted to negotiate a modification of its concession. Pertinent documents are in file 838.2614 for 1953 and 1954.