Foreign Relations of the United States, 1952–1954, The American Republics, Volume IV

838.2553/9–2954

Memorandum of Conversation, by Charles H. Whitaker of the Office of Middle American Affairs

official use only

[ Washington ,] September 29, 1954.

Subject:

• Haitian Petroleum Monopoly

• Participants: Ambassador Léger of Haiti
• MID—Mr. Newbegin
• MID—Mrs. Hood ¹
• MID—Mr. Whitaker

Mr. Newbegin stated that the Department had received word that the Haitian Government is actively considering a proposal of representatives of the Murchison ² oil interests in Texas to build an oil refinery in Haiti under a contract with the Haitian Government, which would assure the new organization certain monopolistic privileges.

Ambassador Léger said that he only knew of this proposal from what he had read in the newspapers and understood that it had been turned down by the Haitian Government. He stated that he believed a monopoly of this sort was unconstitutional in Haiti.

Mr. Newbegin replied that while the U.S. did not wish to interfere in any internal Haitian matters, and followed the policy of encouraging competition between American companies, he wanted Ambassador Léger to know, nevertheless, that our Government opposed any monopoly granted to one American firm which would exclude the competition of others. Mr. Newbegin also stated that while the Murchison interests are well and favorably known, the granting of the contemplated monopoly could have a very serious detrimental effect on future U.S. investments in Haiti, since American businessmen would feel that any other business ventures might suddenly become unprofitable as the result of a similar governmental contract.

Ambassador Léger stated that he would inform his Government by cable of the attitude of the U.S. Government concerning this matter.³

1. Amelia H. Hood.
2. Clint Murchison.
3. In a memorandum of conversation between Ambassador Léger and Director of the Office of Middle American Affairs Newbegin, dated Oct. 5, 1954, the Ambassador is reported to have stated that “he desired to give assurances that his Government would undertake no measures which would prejudice established American oil companies in Haiti and would take no steps in this matter without consulting with the U.S. Embassy and cooperating fully with the United States Government.” (838.2553/10–554)