Foreign Relations of the United States Diplomatic Papers, 1940, The American Republics, Volume V

838.51/3942: Telegram

The Minister in Haiti ( Mayer ) to the Secretary of State

Port-au-Prince , May 20, 1940—1 p.m.
[Received 5:05 p.m.]

65. The report requested in the Department’s telegram No. 68, May 14, 4 p.m.^4a is being prepared. Meanwhile I submit the following.

I believe that a decision on further financial assistance to Haiti must await the course of events on the continent which will have so decisive an influence on the future of our hemisphere. If it is true, as I believe is the case, that the most effective protection of our hemisphere is to be taken on the European continent and that the best defense of Brazil, for example, is defeat at Berlin, then Allied success or failure in destroying the German menace would determine to a very great degree the military, political and economic policy to be followed in this hemisphere. Should Germany win, we cannot now foresee to what lengths we might have to go in competition with Germany to maintain our position among, and the independence of, the American Republics.

I do not anticipate any critical reverse in Haiti’s financial situation during the next few months since the great bulk of the crops had been marketed before the recent developments in Scandinavia and the low countries.⁵ However, the loss of those markets and the trend to even lower world prices of Haitian export commodities create financial and fiscal problems, the full import of which cannot be determined until there has been clarification of the European situation. No improvement in present conditions would require some additional credit facilities for Haiti, whereas a worsening of those conditions would necessitate proportionately greater economic and financial aid.

In these circumstances, it is suggested that while we continue to study the matter closely and from every angle, De la Rue be told that a decision regarding additional financial help for Haiti must be deferred for the present, except that the moratorium on the amortization of the 1922 loan⁶ will be continued, this time without token payment, and that the interest on the Export-Import Bank credit will be reduced from 5 to 4%.

I am moved to make this suggestion also by the belief that the present pressure on the Department for additional credit for Haiti is partly a scheme to facilitate President Vincent’s continuation in office.

Mayer

1. Not printed.
5. The invasion of Norway, Denmark, the Netherlands, and Belgium by Germany. See vol. i, pp. 136 ff. and pp. 184 ff.
6. See Foreign Relations, 1922, vol. ii, pp. 472 ff.