814.51.An 4/10 The Secretary of State to the Chargé in Guatemala (Hewes) No. 664 WASHINGTON, December 18, 1923. SIR: The Department has received your despatch No. 452 of November 20, 1923, with which you transmit a copy of a letter from Mr. Lionel Stahl discussing the effect of your communication to the Guatemalan Government of the Department's views regarding the loan contract proposed by Mr. Stahl and his associates. The Department approves of your action in declining to discuss the loan proposition further with the Government of Guatemala. The statement of the Department's opinion as contained in its telegram of November 8, 4 p.m., was definite and final so far as the loan contract at present under discussion is concerned, and it is not felt that this statement requires any amplification or explanation at the present time. I am [etc.] For the Secretary of State: BOUNDARY DISPUTE WITH HONDURAS (See volume I, pages 354 ff.) HAITI EXCHANGE OF NOTES BETWEEN THE UNITED STATES AND HAITI PROVIDING FOR THE ADMINISTRATION OF THE INTERNAL REVENUES OF HAITI 838.51/1506a: Telegram The Secretary of State to the Chargé in Haiti (Dunn) 29. For General Russell. WASHINGTON, March 7, 1923—4 p.m. Has President Borno issued decree providing funds for installation of internal revenue system? HUGHES 838.51/1507 : Telegram The High Commissioner in Haiti (Russell) to the Secretary of State PORT AU PRINCE, March 9, 1923—3 p.m. [Received March 10-10:35 a.m.] 29. Department's 29, March 7, 4 p.m. President Borno informs me that during recess of legislators it would be highly improper for him by decree to appropriate funds for the putting in force of a law which he has never seen and understands has not yet been drafted. He agreed to issue at once decree appropriating $10,000 for the preparation of internal revenue law, general accounting law and revision of tariff law. I believe if this amount found insufficient it can be later increased. RUSSELL 838.51/1509 : Telegram The High Commissioner in Haiti (Russell) to the Secretary of State PORT AU PRINCE, March 10, 1923—1 p.m. [Received March 11-11:40 a.m.] 31. President Borno informed me this morning that on further consideration he finds that it would be a violation of the Constitution for him to appropriate the $10,000 for the preparation of internal tax law et cetera, there being no law covering this subject and referred me to letter of General Receiver who in the case where $1,200 had been carried in budget for commission to revise communal taxes had refused payment on the ground that there was no law authorizing such commission and therefore violated Constitution. President then said that funds for the necessary work desired by Mr. Hord1 could by the treaty properly be charged to 5 percent fund as expenses of Financial Adviser's office and that he authorized such a charge at once. RUSSELL 838.51/1556: Telegram The High Commissioner in Haiti (Russell) to the Secretary of State PORT AU PRINCE, June 15, 1923-1 p.m. [Received 9:15 p.m.] 81. I informed President Borno that it would be useless to proceed with drafting of internal revenue laws unless the question of control was definitely settled and that in my opinion such control must be placed absolutely in American hands. President Borno informed me that he was of the same opinion. I thereupon stated that I would shortly have a project to present to him. Believe an agreement should be made cover this question and one or two others in connection therewith. I will shortly be able to submit the general terms proposed to the Department. RUSSELL 838.51/1566: Telegram The High Commissioner in Haiti (Russell) to the Secretary of State PORT AU PRINCE, June 28, 1923-6 p.m. [Received June 29-10: 12 a.m.] 88. It is my opinion that before presentation of the internal revenue law to the Haitian Government American control of all internal revenues should be assured during the life of the treaty by an agreement between the two Governments. In my instructions from the Department dated November [February] 11th, 1922, page 5, the consolidation of the offices of Financial Adviser and General Receiver is suggested. Recently President Borno suggested to me such amalgamation. In my opinion the time is now ripe for taking such action and in the proposed agreement I have embodied that idea. I have furthermore developed a 1 John S. Hord, Financial Adviser of Haiti. 2 Foreign Relations, 1922, vol. II, p. 461. chain of authority that will cover all financial activities and [will] not extend the objects and aims of the treaty and protocol. It is my belief that this is of the gravest importance to the future welfare of Haiti and that this is the moment to finally readjust and reorganize it, putting financial control on a firm basis, with a reduction of salaries. After careful consideration I have to submit the following draft of a proposed agreement: "In pursuance of the objects of the treaty concluded September 16th, 1915, between the United States of America and the Republic of Haiti, the Government of the United States and the Government of Haiti, through duly authorized representatives, agree upon this accord for the purpose of carrying out more fully the objects of the aforesaid treaty and the protocol of October 3rd, 1919. It is clearly understood that this agreement does not in fact or by implication extend the provisions of the treaty herein before mentioned. ARTICLE 1. The functions and offices of Financial Adviser and General Receiver of Customs as set forth in article 2 of the treaty of September 16, 1915, are hereby consolidated. The official to occupy this office shall, upon nomination by the President of the United States, be appointed by the President of Haiti and be designated 'the Financial Adviser and General Receiver of the Republic of Haiti'. ARTICLE 2. The following aids and assistants to the Financial Adviser and General Receiver shall be nominated by the President of the United States and be appointed by the President of Haiti. Such aids and assistants shall include: (1) the Auditor, (2) the Collector of Internal Revenue, (3) the Collector of Customs, (4) the Chief Deputy Collector of Internal Revenue. They will take precedence in the order named. ARTICLE 3. The duties of the aids and assistants enumerated in article 2 of this agreement shall include the following: The Auditor: To be chief of the Division of Audit and, under the supervision of the Financial Adviser and General Receiver, to devise and put into effect an adequate system of audit of all revenues and expenditures. The rulings of the auditor on matters of audit shall not be subject to revision by the Financial Adviser and General Receiver of the Republic of Haiti. The Collector of Internal Revenue: To be chief of the Division of Internal Revenue and to be charged with the direction, supervision and control of said division as well as the administrative interpretation of the internal revenue law of 1923. To have the authority to impose and collect administrative fines and declare and enforce the necessary regulations for the administration of the law. Under the direction of the Financial Adviser and General Receiver he shall supervise and control all collections of internal revenue during the life of the treaty of September 16th, 1915. The Collector of Customs: To be chief of the Division of Customs and to be charged with the collection and deposit in the national Ibid., 1916, p. 328. Ibid., 1919, vol. II, p. 347. treasury of all customs duties on imports and exports accruing at the several customhouses and ports of entry of the Republic of Haiti. The Chief Deputy Collector of Internal Revenue: To be assistant chief of the Division of Internal Revenue and to perform such duties as may be assigned to him by the chief of the division and contained in the laws and regulations pertaining to the internal revenue division. ARTICLE 4. The expenses of the receivership, including the salaries and allowances of the Financial Adviser and General Receiver, the salaries and allowances of the officials named in article 2 of this agreement, the expenses incident to the auditing of accounts, the disbursing of funds, the collection of the internal revenue and the collection of customs duties, shall not exceed the total of 5 percent of the collections and receipts from the custom duties plus 10 percent of the collections and receipts from the internal revenues, unless by agreement by the two Governments. ARTICLE 5. The salaries and allowances of the Financial Adviser and General Receiver shall be as follows: salary $6,000 per annum, allowances $4,000 per annum; all in United States currency. The Auditor, the Collector of Internal Revenue and the Collector of Customs Duties shall each receive an annual compensation in United States currency of; salary $4,000, allowances $2,000. The Chief Deputy Collector of Internal Revenue shall receive an annual compensation in United States currency of: salary $3,000, allowances $1,000. ARTICLE 6. All internal revenues, customs duties on imports and exports accruing at the several customhouses and ports of entry of the Republic of Haiti, fines, seizures and forfeitures collected, shall be deposited as, and when collected, in the Banque Nationale de la République d'Haiti to the credit of the General Receiver. ARTICLE 7. The aids, under-assistants and employees not designated in article 2 of this agreement shall be appointed by the chief of the respective divisions.' RUSSELL 838.51/1572 The High Commissioner in Haiti (Russell) to the Secretary of State No. 188 [Extract] PORT AU PRINCE, July 10, 1923. SIR: I have the honor to report that the Committee composed of the Minister of Finance, the Financial Adviser and the General Receiver of Customs, has completed its work on the internal revenue law. A copy of the proposed draft of law has been furnished me by the Financial Adviser and is now being carefully considered hy this Office. It is not my intention to present this draft of law |