611.38/11–1054
Memorandum of Conversation, by Charles H. Whitaker of the Office of Middle American Affairs
Subject:
- Most Important Current Problems before the American Embassy in Haiti
- Participants: Ambassador Davis
- MID—Mr. Newbegin
- MID—Mr. Neal
- MID—Mr. Whitaker
Mr. Newbegin believed that enough time had now elapsed to permit the Haitian Government to be adequately informed about reactivating the FCN Treaty negotiations. He suggested that the Embassy make every effort to have this Treaty ready for signing when President Magloire is on his official visit to the United States. In this connection, all members present felt it would be desirable not to disclose the status of the Military Assistance Pact until FCN Treaty negotiations have reached a more advanced state in order to give the impression that the latter would be the only document available for signing during the official visit.
[Page 1283]Ambassador Davis felt that the problems of the electric light company would soon become much more difficult and that a permanent solution of this matter would be desirable. He agreed to forward a copy of the contract under which the company now operates if this is not now available in the Department. The Ambassador felt that the legal position of the company is weak, that it would probably not fare very well if its case were to be arbitrated and that every effort should be made to arrive at a settlement in the near future.
With reference to problems in connection with the proposed petroleum refinery, Ambassador Davis felt that he should remind the Esso representative of his promise to lower the price of kerosene to a point where it would be able to compete with charcoal and help prevent the denuding of the Haitian forests.
With reference to the Rio Conference,1 he felt that Minister Jumelle2 would want more loans and financial aid.
Ambassador Davis stated that the International Bank was not interested in financing a hydro-electric power plant at the Artibonite Dam at this time but would probably agree to special smaller development projects like roads. He added that the Bank was sending a group of specialists to Haiti on November 12. The International Bank plans to suggest a National Development Committee to recommend priorities among different projects and keep President Magloire informed.
The Export-Import Bank is also not interested in financing the hydro-electric power project and feels that the private power company should be much more reasonable with reference to its negotiations with the Haitian Government.
Ambassador Davis mentioned briefly friction between Mr. Duviella of ODVA, who was able but difficult to deal with, and Mr. McCarthy of KTAM, who was inclined to be quite outspoken. Ambassador Davis felt that the Haitian budget, recently reduced from 140,000,000 to 128,000,000 gourdes, contained an appropriation for the Artibonite project.
With reference to the FOA program, Ambassador Davis plans to investigate the underlying causes of recent statements of the Minister of [Page 1284] Foreign Relations.3 Mr. Newbegin felt that if the FOA program was not wanted in Haiti, it should certainly be withdrawn. Ambassador Davis felt that Minister Zephirin was not favorably disposed toward this program.
Ambassador Davis brought up the matter of the sovereignty over Navassa Island, which is most important to the Haitians. He mentioned his belief that Haiti would be willing to sign any type of agreement for our use of this island, should we relinquish our claims to sovereignty over it.
Ambassador Davis reported that Minister Zephirin hates Generalissimo Trujillo. President Magloire also has misgivings but maintains an attitude of correctness and fears Dominican penetration in Haitian politics. He emphasized that the Haitians are doing everything possible to keep relations on an even keel. Ambassador Davis felt that it would be preferable for him not to be here during the visit of President Magloire. Mr. Newbegin stated that this matter was entirely up to Ambassador Davis and if later he thought it desirable to make the trip he should inform the Department so that necessary arrangements can be made.
- Reference is to the Meeting of Ministers of Finance or Economy of the American Republics as the Fourth Extraordinary Meeting of the Inter-American Economic and Social Council (commonly referred to as the Rio Economic Conference), held at Quitandinha. Brazil, Nov. 22–Dec. 2, 1954; for documentation on the meeting, see pp. 313 ff.↩
- Clément Jumelle, Haitian Secretary of State of Finance and National Economy.↩
- The particular statements by Foreign Minister Zephirin referred to here were not identified; presumably they were similar to his remarks made on Oct. 31 concerning the attempt of an unnamed “foreign power” to intervene in the internal affairs of Haiti (memorandum by Mr. Hoyt to Mr. Newbegin, dated Dec. 14, 1954, 838.00/12–1954).↩