838.516/148: Telegram

The Minister in Haiti (Bailly-Blanchard) to the Secretary of State

48. Department’s 60, August 6, 6 p.m. and 61, August 7, 4 p.m. On July 31st I demanded in writing the immediate repeal of the law on ownership of real property in Haiti by resident foreigners which was passed in violation of the agreement of August 24th, 1918, and over my violent protest. This law is an erroneous interpretation of article 5 of the Constitution, absolutely contrary to spirit thereof, will prohibit the investment of foreign capital in Haiti and will prevent attainment of the aims of the treaty.

The Council of State adjourned on the 4th of August. No action for repeal having been taken I instructed Financial Adviser to suspend payment salaries Government. The basis for my action is found in the language of article 5 of the treaty which requires that the Government of Haiti shall be paid out of such moneys as will remain after the expenses of the offices of the Receiver and the Financial Adviser, the payment of the amortization and interest of the debt of Haiti and the maintenance of the constabulary.

As long as there has been cooperation between the Haitian Government and the United States Government a strict compliance with the requirements of article 5 has not been insisted upon by the American Government and to [the] Haitian Government has been given priority over payment of the amortization and interest of the debt of Haiti. This action is only warranted when the accord between the Haitian Government and the United States Government is [of] such a character as to enable the provisions and purposes of the treaties to be carried into effect. These purposes not being possible of attainment by reason of the action and attitude of the Haitian Government, I have by my act reverted to the provision of the treaty and thereby deferred payment of salaries of the Haitian [Page 774] Government until such time as full accord shall have been reestablished.

Blanchard