838.51/4064: Telegram
The Chargé in Haiti (Sparks) to the Secretary of State
[Received 10:20 p.m.]
171. With a view to forestalling the promulgation of the budget reported in my telegram No. 168, October 4, 7 p.m.41 before President Vincent was aware of the Department’s views expressed in its telegram 160, Oct. 5, 1 p.m. I presented the note Sunday morning.
Vincent declared that he had given the fullest consideration to the drastic salary reductions versus the temporary fiscalization of the communal revenues and that he was convinced that the former is by far the lesser of the two evils. He explained that the Government employees naturally would not regard the reductions with favor but that they would be able to get along on the lower salaries and therefore he had opposed any separations from the service. He added that as a matter of fact the Government employees are more concerned over their inability to discount their October salaries because of the failure to promulgate the budget than they are over the salary reductions themselves. As concerns the enlisted men in the Garde he was equally convinced that because of their small salaries and the risks they run daily he must insure them stability.
With regard to the communal revenues he repeated the many arguments already considered by the Department. He anticipated that the fiscalization of their revenues would involve the separation from the service of 1500 to 1800 municipal employees who obviously are exclusively political appointees.
I emphasized that the Department “remains unalterably convinced” of the benefits that would be derived from the two suggestions and that I had been instructed once more to request him to give them urgent and careful consideration so that once the fiscal situation had been regularized attention might then be given to the further assistance that might be rendered by my Government. I requested Vincent to reconsider the requests in the light of the note which he agreed to do. He was to see me today but has not done so as yet.
Notwithstanding the foregoing this morning the Finance Minister requested the Fiscal Representative to give his accord immediately so that the budget might well be promulgated today to permit the discounting of salaries tomorrow. I reminded the Fiscal Representative that he had included in his estimate of ways and means an item of approximately 2,000,000 gourdes to be derived from the coffee financing provided by the American Government. I added that I could offer him no assurance on that item until I was informed that the [Page 912] Department is prepared to accede to the request for this financing already formulated by the Haitian Government through this Legation.
The Finance Minister emphasized the urgency of promulgating the budget and he offered to increase to 50% the rate of salary reductions. It was explained that the American Government had made two suggestions in the very hope that drastic reductions would not be necessary. The Finance Minister has not been aware of this attitude and he has now returned to the President in an endeavor to persuade him to accede.
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