File No. 838.00/937.
Consular Assistant Hazeltine, on Special Detail, to the Secretary of State.
Port au Prince, July 30, 1914.
Sir: Since the outbreak on July 19, reported in telegram of July 20, there have been no disturbances of any kind in Port au Prince, and from an examination of the Government’s forces it appears that the city is under perfect control. Martial law has been proclaimed and is strictly observed.
[Page 352]Several members of the Cabinet as well as General Faine have expressed confidence in their ability to maintain control, but admit their inability to prevent such outbreaks as long as certain foreign legations, notably the German Legation, persist in arbitrarily harboring for an indefinite period political refugees who are known to be the leaders and instigators of the disturbances.
The political situation at present is very uncertain. Despite the continued successes of the Government forces, the political situation is extremely critical. It is not the unpopularity of the present Government nor the strength of the rebel forces that may eventually cause the downfall of the Zamor Government. Back of all this there remains the financial distress of the Government and its inability to borrow sufficient funds to complete the military campaign as outlined. The ultimate success or downfall of the Zamor Government can have no effect on the financial situation which in reality comprises the political situation. There remains but one known guaranty which could be used to float a small loan. This guaranty is the revenue from stamp taxes and is valued at $100,000 a year. The Chambers are now attempting to raise $300,000 upon this guaranty. It is reliably reported that the German Minister has warned all German residents that the German Government will not support any claims based upon subscriptions to the proposed loan. The Banque Nationale de la Republique d’Haiti has formally refused to advance a loan owing to the disturbed conditions, but has admitted that the guaranty offered is worth the amount sought. With the refusal of aid from these two sources, it is doubtful whether the proposed loan can be consummated although there is always the possibility of the Government obtaining a loan at exorbitant rates from other sources.
In addition to the urgent indebtedness, amounting to $149,000 gold, there must be added a large revolutionary debt, and a considerable sum to be paid to the Dominicans who, it is reliably reported, are effectively assisting the Haitian Government forces in the North.
Thus the political situation is subordinate to and embodied in the financial situation. The Government is in effective control in the capital as well as in the south. In the north, the Government troops have won signal victories and have forced the rebel forces to retreat to the eastern boundary where the latter are harassed by the combined forces of President Zamor and General Charles Zamor, and were it not for the acute financial crisis it could be confidently predicted that the Government would be in complete control of the whole country within a fortnight.
I have [etc.]