838.51/2347: Telegram
The Secretary of State to the Minister in Haiti (Munro)
81. Your 126, October 26, 10 a.m. The following are the Department’s views on the four main questions covered in your telegram:
1. We approve entirely the action you have taken in an effort to reduce the budget to 32,000,000 gourdes. With the proposals you have made to accept reductions in the appropriations for the Garde and the Sanitary Mission, it would seem that the way was clear for the Haitian Government to make the reasonable reductions in the Haitian services required to balance the budget at the figure mentioned.
We share your view fully that you must insist that the first step towards an agreement on the budget is the submission to the Financial Adviser of all pertinent information so that he may be in a position to discuss the budget intelligently with the Minister of Finance. This seems essential, since if the Haitian Government should succeed in its apparent efforts to establish the precedent of not consulting the Financial Adviser about budget details, it would prejudice the whole question of the fulfillment of our obligations as regards financial control under the treaty.
2. We have noted that a general understanding has been reached that the Haitian Government, when the time comes, will agree in writing to interpret the objectionable provisions in the finance laws in such a manner as to render them unobjectionable. The Department will leave to you the question of agreeing upon a formula which will in fact have the effect of removing the objectionable character of these provisions.
3. As regards the preambles of the finance laws, Léger has apparently shifted his ground. In the Legation’s 119, October 2, noon, it was reported that Léger has said that, while the Government could not change the preambles, it could say in writing that they were of no effect. His present proposal would be, as you point out, evasive and inconclusive. However, we are inclined to agree with you that we could protect our position adequately by a formal statement that in giving our accord to the budget we did not in any manner accept the statements made in the preamble. You are authorized to work out an arrangement regarding this matter which will adequately protect our rights.
4. In the event that the situation which you describe in the last paragraph of your telegram should arise, the Department will be prepared to approve payments to essential governmental services, such as telephones and water supply, as an emergency measure to maintain public order, The Department trusts, however, that the Haitian [Page 537] Government will not bring about such a situation through persisting in its present course of action.
The Department feels that on the whole encouraging progress has been made towards an accord with the Haitian Government on these budgetary matters. You are on the ground and are fully conversant with the Department’s views. You are, therefore, authorized to reach, within the limits of the views set forth hereinabove, the best settlement you can obtain on these various questions. If, in your judgment, it should appear advisable to depart in any important respect from the views as expressed above, please consult at once by telegraph with the Department.