On the other hand, however, notwithstanding the apparent opinion of the Government of Haiti that the Protocol of October 3, 1919,' and the loan contracts do not constitute obstacles to the further Haitianization of the office of the Financial Adviser-General Receiver, as reported in your telegram No. 263 of December 31, 12 noon, the Department considers that such further Haitianization-which presumably would consist of the Haitianization of essential personnel branches, as described in the memorandum of December 2, 1930, and the removal of the Internal Revenue Service from American control-would be inadvisable and impractical, not only because of the injurious effect it would have upon Haitian revenues but also because of imperative obligations arising out of the Protocol of 1919.

It does not appear that the provisions of Article 8 of the Protocol of October 3, 1919, contemplated the collection of the Haitian internal revenues under American supervision until after the expiration of the Treaty of September 16, 1915. Nevertheless, as is described in the enclosed memorandum dated January 3, 1931, entitled "American Control of the Internal Revenue System of Haiti",10 it was decided by the Government of Haiti that such control should be exercised prior to the date of its obligatory initiation. It obviously would be inadvisable to discontinue this arrangement at this time, when it must inevitably be reestablished upon the expiration of the Treaty notwithstanding the difficulties which would then presumably accompany such action. Considerations of sound procedure would seem to counsel the retention of this control.

3) Public Works Service.

The measures already effected and those described in your despatch No. 21 dated December 22, 1930," for the Haitianization of this Service would appear to meet any reasonable requirements of the Haitian Government. Nevertheless, in view of its statement that it desires a more rapid Haitianization of the Service, as reported in your telegram No. 263 already referred to, the Department will be glad to have you discuss with the appropriate Treaty Officials, with a view to satisfying the requirements of the Government, such measures as they may consider it possible to take beyond those now contemplated.

"Ibid., 1919, vol. II, p. 347.

8 Not printed; see note of December 30, 1930, from the Haitian Minister for Foreign Affairs to the American Minister (par. e), ibid., 1930, vol. I, p. 277. "Treaty between the United States and Haiti relating to the finances, economic development, and tranquillity of Haiti; for text, and supplementary agreements and protocols signed in 1916, see ibid., 1916, pp. 328-338; for additional act signed March 28, 1917, extending the duration of the treaty, see ibid., 1917, p. 807. 10 Not found in Department files.

11

Foreign Relations, 1930, vol. III, p. 266.

4) Public Health Service.

The Department concurs in your opinion that the Districts of Port au Prince and Cape Haitien should not be removed from American control so long as any large number of American civilians and officials continue to reside in those cities.

The program already initiated by the Director General of the Service, as described in your despatch No. 21, of December 22, 1930, would appear to meet any reasonable requirements of the Haitian Government, and the Department does not feel that any more rapid pace should be set in the Haitianization of this Service than may be readily agreed to by the Director General, whose views as to what measures may be taken without crippling the splendid and essential work which it carries on should be given the greatest weight. 5) Service Technique.

The Department approves the general outline for the reorganization of the Service Technique de l'Agriculture submitted in your telegram No. 256 of December 24, 12 noon, subject to the definite understanding that coincidentally with and as a part of the arrangement for such reorganization the appointment of Mr. Colvin will be consummated by the Haitian Government.

Very truly yours,

838.00/2927

HENRY L. STIMSON

The Minister in Haiti (Munro) to the Secretary of State No. 51

PORT-AU-PRINCE, January 24, 1931. [Received January 27.]

SIR: I have the honor to report that the Haitian Government, on January 14, 1931, addressed a further note to this Legation on the subject of Haitianization, enclosing a memorandum making specific proposals which, in some cases, were somewhat more radical than those contained in M. Sannon's earlier communication on the same subject. Translations of this note and memorandum are transmitted herewith.

The tone of this communication and the attitude which the Government had recently assumed on other questions under discussion made it seem advisable to preface any further expressions of a readiness to make concessions in Haitianization with a definite statement which would disabuse the Haitian Government of any impression that the process of Haitianization would be accompanied by a relinquishment of the authority which the American Treaty Officials now exercise over their respective departments. I, therefore, handed M. Sannon a note, copy of which is enclosed, setting forth in part the position of the United States Government as expressed in instructions

addressed to me by the Secretary of State on October 18, 1930.12 I felt that further negotiations would be carried on in a decidedly more satisfactory atmosphere if it were clear from the start that there were definite limits to the concessions which the Government of the United States was prepared to make.

On the same day, I handed M. Sannon, informally, a tentative plan for the reorganization of the Service Technique, a copy of which is also transmitted herewith. He promised to submit the plan at once to the President and the Council of Secretaries of State but said that the Haitian Government would prefer to have a reply to all its proposals regarding Haitianization before proceeding with further negotiations. I pointed out that the Government had expressed a special desire to make arrangements which would permit the immediate opening of the schools, and said that it was for this reason that I had thought it preferable to consider the reorganization of the Service Technique first. I also pointed out that the discussing of Haitianization in all of the Treaty Services would involve a considerable delay. M. Sannon insisted, however, that the matter should be dealt with as a whole, realizing, of course, that we would probably go much farther toward meeting the Haitian Government's desires with respect to the Service Technique than with respect to other Departments. As I did not feel that there was any real justification for insisting upon dealing with the different Services one by one, I promised to send him a reply to his note as a whole in the near future.

I am, at present, going over the question of Haitianization again in detail with each Treaty Official, and I propose, within the next few days, to send M. Sannon a formal note outlining a plan of Haitianization very similar to that described in my despatch number 21 of December 22nd,1 and answering specifically some of the new points raised in his memorandum of January 14th. I had hoped to avoid unnecessary correspondence and exchanges of notes in conducting the negotiations regarding Haitianization, but I believe that the President and the Secretary of State for Foreign Affairs feel that they need a formal written statement from the Legation which they can use to convince their more radical associates that matters really are as they have described them. The Government is, unquestionably, being subjected to severe pressure from persons who feel that it has not been sufficiently energetic in formulating and pressing its demands and who accuse it of acquiescing in a policy of delay.

Respectfully yours,

Foreign Relations, 1930, vol. m, p. 255.

13 Ibid., p. 266.

DANA G. MUNRO

[Enclosure 1-Translation]

The Haitian Minister for Foreign Affairs (Sannon) to the American Minister (Munro)

[PORT-AU-PRINCE,] January 14, 1931.

MR. MINISTER: Permit me to refer to the various interviews which I have had with Your Excellency since the forwarding of the Memorandum of December 2nd to the American Legation, interviews which leave no doubt of our common desire to reach an accord on the Haitianization of the Treaty Services. I have the honor to submit herewith a Memorandum containing concrete proposals relating to each of the Services in question.

The Government hopes that Your Excellency will examine these proposals in such a manner as to facilitate the early conclusion of the accord envisaged, and to permit it, in so far as it is concerned, to take the administrative and legislative measures necessary in the premises. The Ministry of Foreign Relations takes this occasion again to direct the serious attention of Your Excellency to the following:

With the opening of the Congress elected by the people and exercising the constitutional right to control the financial administration of the country and to provide annually the national budget, the Secretary of State for Finance is under the strict obligation to exercise complete control over all of the Services generally, of whatever nature, under his department.

He cannot abstain, for example, from entering into the details of budgetary credits, their use and their application to public expenditure, whatever the nature of these expenditures may be. All obstacles which the authority of this High Functionary encounters in this respect can give rise to grave difficulties in his relations with the Congress. It is this officer which the Constitution and laws of the country make chiefly responsible for the management of our financial affairs. Such is not the case with the Financial Adviser, who has no responsibility vis-à-vis the Chambers.

The Government cannot meet its Constitutional obligations unless the Secretaries of State exercise in their respective departments an authority equal to their responsibilities. It is necessary and even indispensable under these circumstances that the Treaty Officials conform to these conditions and the correct execution of the Services confided to them, and the constitutional relations of the Secretaries of State with the Chambers.

The Government desires to point out that the Financial Adviser is not the chief of the Ministry of Finance, but a "Functionary" attached to the Ministry.

"Foreign Relations, 1930, vol. ш, p. 263.

It is the sincere desire of this Government to remain within the limits of the Treaty until it is liquidated, but being solely responsible to the Chambers for the conduct of public affairs, it will appreciate all assistance which the American Legation will give it in order to cause the American Officials to remain within the limits of the functions assigned to them by the Treaty of September 16, 1915. H. PAULÉUS SANNON

[Subenclosure-Translation 14a]

MEMORANDUM

In accordance with the Memorandum of December 2, 1930,15 and the letter of the 20th of the same month,16 replying to the Honorable Dana G. Munro, the Government desiring to hasten the Haitianization of the Treaty Services, proposes the following nominations for the Public Works Service:

a. A Haitian engineer with the title of Assistant Engineer in Chief. The present chief engineer of the Treaty Service will continue to exercise supervision over all branches of the service and to give his assistance and technical advice to the Government for operations now in course of execution, as well as those to be undertaken, until such time as complete Haitianization has been accomplished.

b. Engineer Ethéart to take charge of the Irrigation Service. c. Engineer Léon Ménos as director of the Telegraph and Telephone Service.

d. Engineer Maignan to take charge of the direction of Public Buildings.

e. Engineer Péreira to the Road service.

f. Engineer F. Azor to take charge of municipal engineering service.

In the conferences which will follow, the Government will make up in proportion its proposals relative to the central office of Public Works.

DEPARTMENTS AND DISTRICTS

While awaiting the appointment and nomination of a Haitian departmental engineer for the Department of the South, the Government wishes now to nominate the following Haitian engineers: Georges Cauvin, Salès and Charles Martin, chiefs of the districts of Jacmel, Jérémie and Cayes.

The inspectors now assigned to the departments of the North and the Artibonite-Northwest to be recalled to the Head Office in Port-auPrince.