Foreign Relations of the United States, 1958–1960, Volume V, Microfiche Supplement, American Republics

HA–29. Telegram from the Secretary of State to the Embassy in Haiti¹

Washington, November 25, 1960, 8:47 p.m.

152. Your 161, 163, 164, 165.²

Department concurs with line taken by Ambassador in conversations with Haitian officials reported reftels. Embassy requested draft reply Haitian note along following lines:

1. Existing loans to LA countries by U.S. financial institutions arranged only after detailed negotiations between parties and based on consideration very specific circumstances prevailing at time loan arranged.

2. Consideration of a moratorium on payments is a matter strictly between lending agency and particular LA government again to be considered carefully only after taking into account prevailing circumstances.

While U.S. is appreciative of lofty sentiments which motivated Haitian note, it cannot consider that such bilateral arrangements are appropriately concern of any governments other than two governments concerned.

4. Furthermore, agencies of U.S. government, as well as international banking institutions, have worked closely with LA governments in assisting them to establish sound economic and financial practices which have enabled them to meet their obligations without necessity of resorting to moratorium and, in addition, have thus aided them in qualifying for additional loans or other types of financial assistance.

5. U.S. Government and its lending agencies have given in past and will continue to give extended and sympathetic consideration to financial needs of individual Latin countries which can be met by existing institutions.

6. Moreover, U.S. Government has demonstrated, most recently by Act of Bogotá,³ that it is ready to consider and act upon economic and social needs of hemisphere where existing institutions are believed to be inadequate for fulfillment of such needs.

Proposed reply should be sent Department for approval before submission FONOFF. Department hopes as result Ambassador’s representations, Haitian government will cease efforts to push this initiative and that, upon submission note in reply, whole matter can be dropped. Department would also appreciate any reaction LA Ambassadors to Haitian demarche.

Herter

1. Source: Department of State, Central Files, 838.10/11–2460. Confidential; Priority. Drafted by Richard B. Owen, Officer in Charge of Haitian Affairs, and by Edwin E. Vallon, Director of the Office of Caribbean and Mexican Affairs; cleared in draft with Turkel and in substance with Denison, Harlan A. Harrison, Chief of the Cuba-Dominican Republic-Haiti-Mexico Branch of the International Cooperation Administration, and Marski of the Development Loan Fund; and signed by Barall.
2. Telegram 163 is printed as Document HA–28. For telegram 161, see Document HA–28, footnote 2. In telegram 164 from Port-au-Prince of November 24, Newbegin reported that he had told Haitian Minister of Finance, Herne Boyer and Minister of Commerce, Clovis Desinor that Haiti’s public request for a debt moratorium was a most unfortunate step, that it had placed the United States and the Export-Import Bank in a very difficult position vis-á-vis a number of other Latin American countries, and that it could only prejudice Haiti’s attempt to obtain a moratorium from the Bank. (838. 10/11–2460)
   In telegram 165 of November 24, Newbegin informed the Department of State that he had spoken with Foreign Minister Baguidy along the lines indicated in telegram 164. (838.10/11–2460)
3. The Act of Bogotá, adopted by members of the Organization of American States at Bogotá on September 12, 1960, established a special inter-American fund for social development.