Minister Dawson to the Secretary of State.
Santo Domingo, April 1, 1905.
Sir: Referring to the subject of my No. 122, of March 27, a modus vivendi in regard to the Dominican debt and custom-houses, I have the honor to confirm your telegram of March 29, as follows: [Printed ante.]
I immediately communicated the contents thereof to the minister of foreign affairs, to the President, and to the minister of finance and commerce. That the United States was willing to acquiesce in the modus vivendi proposed by them gave them great satisfaction. The minister of finance undertook to draw up an Executive resolution embodying the original proposition of this government with the modifications necessary to make it meet your suggestions.
He made no objection to the elimination of the provision as to the United States taking possession of the four northern ports under the award of July 14, 1904, but on three other points he requested me to communicate further with you. First, he wanted a joint international commission of receivers, on the ground that this would tend to insure the adhesion of the European creditors. I told him that these creditors would, I knew, be better pleased with a single receiver indicated by the American Government, and that I did not feel justified in telegraphing his suggestion to the Department.
Second, he wanted to substitute the words “President of the United States” for “Secretary of War,” insisting that the explicit mention of the latter official would give rise to popular misapprehension and press criticism. I agreed to submit this suggestion to you, and accordingly telegraphed as follows:
Santo Domingo, March 30, 1905.
Secretary of State, Washington:
Dominican Government prefers to say “the President of the United States” instead of “Secretary of War;” otherwise will accept your telegram of 29th categorically.
Dawson.
The third point involved considerable discussion. He insisted that the terms of your telegram were too vague in regard to the functions of the proposed receivers, and also suggested that they ought only to collect the percentage to be deposited for the creditors. He said, and correctly, that the Executive could not by a mere resolution repeal the laws and constitutional provisions in regard to the administration of the custom-houses and the appointment of employees. He therefore wanted to have appointed a single American in each port to verify the acts of the Dominican officials as well as to receive the money. I answered that it seemed to me impracticable to frame, at the present time, a clause exactly defining the limitations of the functions of the officials which were to be named by his government on presentation by the President of the United States; that a receiver in chief, with power to take all the revenue and distribute it, who should nominate as many deputies and assistants as he might find advisable and who would be backed by the Dominican Government in taking such measures as might be found necessary to carry out the latter’s pledge that all legal revenues should be turned over, disregarding all existing special contracts and exemptions, would probably successfully carry out the purpose of the modus vivendi, but the matter must be left open for changes and amendments until after the arrival of Doctor Hollander.
With the Italian war ship in port and the existence of sporadic disorders in the interior, President Morales was extremely anxious that the proposed resolution should be published at once, and on my reiterating to him, to Minister Sanchez, and Minister Velasquez that my government had only authorized me to acquiesce in case this government should accept categorically the telegram of the 29th, the minister of finance ceased discussing the details.
In the meantime I had received your telegram, as follows:
Washington, March 31, 1905.
American Legation, Santo Domingo:
‘The President of the United States” substituted for “Secretary of War” in my telegram of 29th.
Adee, Acting.
Accordingly, I addressed a note to the minister of foreign affairs asking for a categorical acceptance of your telegram of the 29th, as modified by your telegram of the 31st, having been verbally assured that the answer would be in the affirmative. I inclose a copy of said note and a copy and translation of Minister Sanchez’s reply thereto.
I also confirm my telegram to you, as follows:
Santo Domingo, April 1, 1905.
Secretary of State, Washington:
Dominican Government accepts your telegram of the 29th. Has issued a decree establishing modus vivendi. It takes effect April 1.
Dawson.
This afternoon there was published and officially proclaimed the Executive resolution or decree in question. Copy and translation inclosed. It seems to me to cover the ground so far as is practicable before the coming of Doctor Hollander and the beginning of the actual work of reorganization. I believe he can obtain additions thereto which may be found necessary.
I have the further honor to confirm the following telegrams in regard to the Italian war vessel Calabria, which has been here for the [Page 364] purpose of obtaining a prompt settlement of the Italian claims. See my No. 122, of March 27, for a report of her first visit.
Santo Domingo, March 11, 1905.
Secretary of State, Washington:
Italian war vessel Calabria is expected to arrive here 14th.
Dawson.
Santo Domingo, March 14, 1905.
Secretary of State, Washington:
Calabria just arrived. Please inform the Navy Department.
Dawson.
The latter clause was inserted at the request of Commander E. J. Dorn, the senior naval officer at this port, in order to avoid the necessity of his going to the unnecessary expense of telegraphing to the Secretary of the Navy the Calabria’s arrival.
Santo Domingo, March 20, 1905.
Secretary of State, Washington:
Calabria gone Habana.
Dawson.
But it appears that the Italian Government deemed it best to have the Calabria at a port whence she could be more conveniently recalled here than from Habana, and after her departure I learned from an unofficial but certain source that she had in fact gone to Kingston, Jamaica, on orders received at the last moment. Accordingly, I telegraphed you as follows:
Santo Domingo, March 21, 1905.
Secretary of State, Washington:
Unofficially we learn that Calabria at the last moment was ordered Kingston.
Dawson.
On the afternoon of the 28th of March the Calabria again appeared in this port, where she still remains. I telegraphed you as follows:
Santo Domingo, March 28, 1905.
Secretary of State, Washington:
Calabria returned. Expects remain here until relieved by Dogali from Trinidad.
Dawson.
Commander Dorn kindly took prompt measures to ascertain the probable purpose of her return and the probable length of her stay. It appeared that Captain Moriundo had received orders at Jamaica to return to Santo Domingo and await the arrival of the Dogali, which was then at Trinidad. Afterwards he expected to continue his original itinerary to the ports of Venezuela, Brazil, Argentina, etc. At Jamaica he had heard that the Dominican-American convention had failed to receive the approval of the Senate, and he knew nothing of any negotiations for a modus vivendi.
Next day he called on the minister of foreign affairs to say that he was instructed to emphasize the demand of the resident Italian chargé d’affaires for an immediate resumption of payments according to the terms of the Italian protocols. The minister told him that his government was unable to comply, but that a modus vivendi which would satisfactorily guarantee all the creditors was now under consideration and would shortly be put into force. Captain Moriundo courteously [Page 365] replied that in that case he did not expect that his visit would be a long one. The Italian chargé d’affaires accordingly made a formal written demand for resumption and the minister of foreign affairs answered, repeating in writing what he said about the modus vivendi. This correspondence has been referred to the Italian Government, and Captain Moriundo and the local Italian creditors do not doubt but that the modus vivendi will be officially accepted.
From expressions used by Captain Moriundo in conversation with me, I infer that he now does not expect the Dogali, but I have no definite assurance to this effect.
On my communicating Doctor Hollander’s expected arrival to the President and Minister Sanchez, they expressed a lively satisfaction that the State Department had chosen such a distinguished and experienced man to take up the financial matters of the Republic. They regard—as do I—his coming at this time as peculiarly opportune, and they hope that he will come empowered to act as receiver in chief at once.
The internal situation of the country, while critical and uncertain, is quiet, except in a few localities, and it is not probable that any serious outbreak will be caused by the publication of the modus vivendi. Rather does the assurance that the Morales government will not be hampered by aggressive acts on the part of creditors, foreign and domestic, discourage the malcontents. The modus vivendi makes it impossible for them to borrow money from speculative or discontented merchants, and they hesitate to engage in a conflict with a government which has had, since the 1st of February, and will continue to have, a regular and secure income applicable to putting down any insurrection which may burst out.
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I have, etc.,