838.51/921

The Secretary of State to the French Ambassador (Jusserand)

Excellency: I have the honor to acknowledge your note of April 15, 1920, in which you inform me that the French Chargé d’Affaires at Port au Prince has brought to your notice the predicament in which the French holders of bonds of the Haitian internal debt, or of certificates of indebtedness of the Haitian Government, are placed in the country to which he is accredited. I have also taken notice of the statement drawn up by the interested parties, which was enclosed with your above mentioned note.

I have conferred, in regard to this matter, with the Financial Adviser to the Republic of Haiti and he advises me relative thereto as follows:

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The liquidation of the internal, as well as the external, debt of Haiti is dependent upon the flotation of an adequate loan in the United States. Until the loan is placed it has not been deemed wise to appoint the Claims Commission provided for in the Protocol of October 3, 1919,81 as it is desired to pay the claims in cash or bonds as they are adjudicated. During the period of the war, the commerce of Haiti fell off to such an extent as to make it impossible for the Haitian Government to pay the interest on her recognized debt but a small amount of money was saved, however, and this money was applied to the payment of deferred interest to January 1, 1920, on the bond issues of 1875, 1896 and 1910 held in France. The payment of the interest on the internal debts was not made at that time as these debts have not as yet been passed upon by the Claims Commission.

I would be grateful if you would convey to your Government the assurances that the re-financing of Haiti is receiving the earnest attention of the Financial Adviser and of the American Government and will be accomplished as soon as the American money market will permit.

Accept [etc.]

Bainbridge Colby