File No. 839.51/962.
The Secretary of State to the American Minister.
Washington, February 26, 1913.
In regard to your February 23, the Department feels that the provision for the endorsement by the American Minister should be stricken out of the loan contract.
As to your February 21 and February 24, with the modification made as stated in the foregoing paragraph, this Government, in pursuance of the terms of the convention between the two Governments of February 8, 1907, stands ready to agree with the Government of the [Page 465] Dominican Republic that that Government contract a loan for $1,500,000 in accordance with the terms of the contract with the National City Bank of New York. In order to evidence this agreement on the part of the two Governments, it is proposed that formal notes be exchanged between the Foreign Office and the Legation.
Therefore when the Minister for Foreign Affairs shall have addressed to you a note enclosing a copy of the proposed contract, modified as above indicated but otherwise as laid before the Department, and shall have officially asked that this Government agree to the proposed increase of the Dominican public debt as provided in the said convention, and shall have informed you that the Dominican Government agrees that the proceeds of the loan shall be disbursed subject to such supervision as this Government may indicate, you will acknowledge receipt and say:
The Government of the United States, pursuant to the terms of the Convention between the United States and the Dominican Republic of February 8, 1907, hereby agrees with the Government of the Dominican Republic that the Government of the Dominican Republic may increase its public debt to the amount of one million five hundred thousand dollars in accordance with the terms of the proposed contract with the National City Bank of New York, a copy of which has been transmitted to this Legation; provided, however, that all advances or disbursements of the proceeds of this loan shall be made only by check or order of the Minister of Finance of the Dominican Republic specifically reciting the proposed application of the disbursement, such check or order to be countersigned as providing for a proper expenditure by the Minister or Secretary of the Legation of the United States in the Dominican Republic, and by a person designated for this purpose by the Receiver General of Dominican Customs.
You will withhold exchange of notes until a slight modification in the coupon note desired by the National City Bank shall have been cabled to you, today or tomorrow, for your information.