839.001 Trujillo, Rafael L./395
The Chief of Staff of the Dominican Army (Trujillo) to President Roosevelt
My Dear Mr. President: Upon leaving on my homeward trip, I wish to express once more my appreciation for all the courtesies which were shown me during my visit in the United States. At the same time, I beg to acknowledge receipt of your letter of August 4,10 in reply to mine of July 26 and which reached me in Paris when, in the midst of the alarms of pre-war days, I was preparing the return trip of my family to America.
I was happy to know that you also feel that, due to its simplicity, the idea of taking definite steps towards the solution of the problem which divides our two countries by appointing a Dominican citizen [Page 592] for the post of General Receiver of Customs or by leaving the post vacant, is highly commendable. As you so justly realize, this method, partial in its results, would have the advantage of breaking through eight years of Chancery negotiations in search of a complete solution, and, in my opinion, it would be the basis for a rapid understanding of the general convention which, as you well advise, must replace that of 1924.
In the meantime I have been advised that the post of General Receiver of Customs is now vacant11 and that new proposals for a convention between our two countries are being considered. Under these circumstances, a negotiation undertaken under your personal auspices, Mr. President, could not fail to reach the solution that our two governments desire.
Welcoming the cordial invitation expressed in your above mentioned letter of August 4, stating that the Government of the United States “will examine with benevolent understanding any new proposal submitted by the Dominican Government”, this Government intends to submit to the consideration of the State Department a new basis for discussions which contains in substance the essential points upon which that Department has been insisting and which eliminates, at least partially, the dispositions of the Convention of 1924 which my country considers as offensive to its sovereignty.
The Dominican proposal, taking into consideration the interest of third parties which you mention in your letter, would strengthen the guaranty of the external debt binding to its service the total amount of the Government’s income, which amounts to 11 million dollars, instead of making one sole collection of customs which amounts to more or less $2,800,000, representing the guaranty in accordance with the present Convention.
The Dominican proposal, in its general outline, can be expressed as follows:
- I.
- —The Government of the United States and the Government of the Dominican Republic agree to abrogate the Convention of December 27, 1924.
- II.
- —The Government of the United States and the Government of the Dominican Republic appoint, by mutual agreement, the National City Bank of New York as depositor of the general funds of the Dominican Government and agree to it that an official of that Bank will act therein in the capacity of representative of the Fiscal Agent of the loans. This official will receive by indorsement on the first days of each month, the amount representing the payment of the amortization and interests of the loans of 1922 and of 1926, by means of instructions for payment which will be given to the bank by the Dominican Government or through the Treasury Department.
- III.
- —The Government of the Dominican Republic agrees not to dispose of the funds deposited in the bank until the amount corresponding to the amortization and interests of the external debt has been segregated and paid in total.
- IV.
- —It is understood that the amortization of the external bonds of 1922 and of 1926 will be made in accordance with the agreement reached with the Foreign Bondholders Protective Council, Inc. on August 16, 1934.
A Convention based on these points would give back to my country the right to manage their own Customs and revise their tariffs, thus opening the door to sure prosperity.
Being well acquainted, Mr. President, with your interest in the solution of this problem, I have taken the liberty of calling once more your attention to our points of view on the matter.
In taking leave of you, Mr. President, I wish to reiterate the assurances of my appreciation for your courtesies and of my highest esteem and consideration.