File No. 838.516/64.
Minister Blanchard to
the Secretary of State.
No. 29.]
American Legation,
Port au Prince,
January 15, 1915.
Sir: In compliance with the Department’s cable
instructions of December 31,17
received January 2, regarding interference by the Haitian Government in
the affairs of the National Bank of Haiti,
[Page 503]
this Legation addressed under date of January 5,
1915, a note to the Foreign Office, copy of which is herewith enclosed,
together with copy and translation of the note, dated January 12,
received in reply.
As you will observe, the Minister of Foreign Relations states that just
previous to the time of the receipt of the above-mentioned note from
this Legation, the Haitian Government, by reason of its sincere desire
to arrive at a final conciliation with the Bank, had suspended all
prosecutions against it; and through the good offices of the Department
of State had exchanged propositions of agreement.
After enumerating the several points of this Legation’s note of January 5
and before answering the same, the Minister of Foreign Relations
declares his reply to be made under the express reserves of the
declarations relative to Articles 3 and 24 of the contract of the Bank,
made in preceding notes, which articles, as the Department is aware, are
the two which establish the identity of the Bank as a French corporation
and prohibit all diplomatic intervention.
It will be further observed that after setting forth the functions and
identity of the Bank, the Minister of Foreign Relations declares that
since certain obligations to the Haitian Government have been created
both by its contract and by the laws of Haiti, the Bank for any
infraction thereof is amenable to all legal means capable of compelling
it to comply with the terms of its contract of concession.
The Minister of Foreign Relations further states that the Government has
never intended, and does not intend, “to interfere with the Bank”, and
only asks to live in harmony with its Treasury; but that if in the
course of proceedings begun, or to be begun, for any violation of the
penal code, the Bank, with a view to escaping the consequences of its
acts, should close its doors, the Haitian Government will be guided in
its action by the terms of the contract binding the parties and by the
civil code of Haiti which, being the same as that of France, is
consequently the civil code of the Bank, a French corporation.
Regarding that portion of this Legation’s note relative to “the arbitrary
conduct of the authorities with regard to foreign interests”, the
Minister of Foreign Relations states that he regrets that no specific
charge was mentioned, and adds that foreign interests in Haiti are
represented by seven legations and a large number of consulates, from
none of which has a complaint been received.
On the day after the delivery of the above protest at the Foreign Office,
Mr. Williams, the acting manager of the Bank, called at this Legation
and stated that there was a very marked change in the attitude of the
Government officials toward the Bank; and further stated that every
facility had been afforded him to have the money in the different branch
offices of the Bank, situated at different towns around the coast,
brought to the Bank here at Port au Prince, a measure which he deemed
absolutely necessary to enable the Bank to meet the demands for cash
which its ordinary transactions required.
Up to the time of this writing the Government has continued in this
attitude, and has done nothing further to hinder the operations of the
Bank.
I have [etc.]
[Page 504]
[Inclosure 1.]
Minister Blanchard to the Minister for
Foreign Affairs.
American Legation,
Port au Prince,
January 5, 1915.
memorandum.
In pursuance of instructions from the Department of State, the
Legation of the United States protests against any interference with
the Bank of Haiti in view of the fact that it is owned and operated
by Americans and other foreigners.
In case the Bank is forced to close and cease operations by the
present Haitian Government, the Government of the United States will
not recognize any forfeiture of the charter of the Bank resulting
from such forced closure.
The Legation is further instructed to add that the United States
Government is deeply concerned over the reports which have reached
it as to the arbitrary conduct of the authorities in dealing with
foreign interests in the Republic.
[Inclosure 2–—Translation.]
The Minister for Foreign
Affairs to Minister Blanchard.
Department of State for Foreign
Affairs,
Port au Prince,
January 12, 1915.
Mr. Minister: Through the good offices of
the Department of State, propositions of agreement have for some
days been exchanged between the Haitian Government and the National
Bank of the Republic of Haiti. In its sincere desire to facilitate
this agreement, in its clear wish to come to a final conciliation of
mutual interests, the Government has suspended all prosecution
against the Bank and withholds the acts which it was about to notify
to this State’s Treasury both in view of the arbitration provided
for by the contract and by reason of the charges of guilt raised
against it. And it is just at this moment, when it seems that the
conflict created by the illegal attitude of the Bank seems to be
calmed, that the Legation of the United States, upon instructions of
the Department of State, communicated to my Department a memorandum
dated January 5th and forwarded to my office on the 7th, which
comprises:
- 1.
- A protest against any interference with the Bank of
Haiti.
- 2.
- The declaration that “if the Bank is forced to close and
cease operations by the present Haitian Government, the
Government of the United States will not recognize any
forfeiture of the charter of the Bank resulting from such
forced closure.”
- 3.
- The advice that reports have reached the Government of the
United States relative to “the arbitrary conduct of the
authorities in dealing with foreign interests in the
Republic.”
It is, Mr. Minister, under the express reserves of the declarations
made in my preceding notes relative to Articles 3 and 24 of the
contract of concession of the Bank, that I today reply to the
memorandum of January 5.
The National Bank of the Republic of Haiti is bound to the Haitian
State by a formal contract which charges it with the service of the
Treasury, with the collection of our revenues, with the execution of
our budgets, which gives it the formal quality of a functionary
responsible for the public moneys, dependent, consequently, upon the
Government of the Republic. Hence there exist between this
Government and the Bank necessary, obligatory, indispensable
relations created as much by the contract itself and natural
consequences, as by the laws of the Republic.
Each time that the Bank of Haiti violates the texts which regulate
these relations, as it violated them when it refused the Government
the assistance which it had pledged itself to furnish it in return
for considerable privileges which have been accorded it; each time
it violates, as it did on December 17 last in withdrawing and
exporting the funds of the Haitian Treasury, the penal law which
protects the State against the infidelity of its accountants and
depositaries of public moneys; each time it refuses obedience to
legislative measures which dispose of the amounts belonging not at
all to the cash of a private bank, but to the cash of the National
Treasury—under all these circumstances,
[Page 505]
the Haitian Government will have the right and
the duty to employ against it all legal means to compel it to
respect its contract and the laws of the nation.
The Government has never intended and by no means does it intend “to
interfere with the Bank”; but it will not tolerate that the Bank, on
its side, interfere with the rights and interests of the State. It
only asks to live in perfect harmony with its Treasury; it claims
from it but one thing; i. e., that it execute loyally its
obligations towards the Republic.
If in the course of the just prosecutions which have been commenced
or which may tomorrow be exercised against it or its responsible
agents—whether for the violations of its obligations, for the
criminal act of December 17, or any other infraction of the penal
law—the Bank, with a view to escaping from the consequence of the
eventual condemnations, thinks that it may close its doors and cease
operations, the Haitian Government, to determine its attitude
towards it, will be guided by the terms of the contract which bind
the two parties and the dispositions of the Civil Code of Haiti
which is none other than the Civil Code of France and consequently
the civil code of the Bank, a French company.
In that which concerns the reports which have reached the Government
Of the United States “as to the arbitrary conduct of the authorities
in dealing with foreign interests in the Republic,” the Department
of Foreign Affairs can not but regret that, on a question of such
great importance, the memorandum of January 5 did not mention
anything precise and confined itself to a vague incrimination.
Foreign interests are represented in Haiti by seven legations and by
a large number of consulates. Yet from not one of these various
representatives, and not even from the American Legation, has the
Department of Foreign Affairs received a complaint against the
Haitian authorities. This is a fact absolutely conclusive, which can
not fail to attract the attention of the Government at Washington,
the vigilant guardian of American interests.
I beg [etc.]
