If the date of ratification of protocol by the Haitian Government (June 26th, 1921 [1922]) is taken, it is my opinion that some claims would be presented involving decisions of Department's Financial Adviser and other Treaty Officials and perhaps of the Department of State. Furthermore, such an extension of time could only be arrived at by a separate agreement between the two Governments. If date of ratification of treaty is taken all foreign claims after May 1916 can be made through diplomatic channels. In view of above it is my opinion that jurisdiction should be limited to date of ratification of treaty. 438.00/247: Telegram RUSSELL The Secretary of State to the Chargé in Haiti (Dunn) 62. For General Russell. WASHINGTON, May 28, 1923—5 p.m. Your 69, May 15, 1 p.m. Protocol establishing Claims Commission was made as stated therein for purpose among others of "giving effect to Article XII" of Treaty of 1915 which article sets forth agreement of Haiti to settlement by arbitration of all pending pecuniary claims. It is stated in Article 1 of Protocol to be understanding of signatory powers that protocol does not in fact or by implication extend provisions of treaty. It seems obvious that definition of jurisdiction of Commission under Article 3 of Protocol to include examination of all pecuniary claims against Haiti must be read in connection with Article 1 of Protocol and that Protocol must be regarded as declaratory of and not independent of treaty. It follows then that the term "all pecuniary claims" in Article 3 of Protocol must relate back to provision in Article XII of Treaty for settlement of all pending pecuniary claims and that therefore jurisdiction of Commission is limited to claims pending when treaty came into effect, which is stated by Article XVI thereof to be day of exchange of ratifications. Contrary interpretation extending jurisdiction of Commission to embrace claims arising subsequent to May 3, 1916 would violate Article 1 of Protocol by enlarging provisions of Article XII of Treaty. Inform Haitian Government of foregoing and state that extension of time to give Commission jurisdiction over claims arising after May 3, 1916 could only be arrived at by separate agreement between two governments, conclusion of which might well delay work of Commission and therefore would not be approved by this Government. Express the hope that the Haitian Government will be able to concur in above view. HUGHES 145231-vol. II-38- -34 438.00/263: Telegram The High Commissioner in Haiti (Russell) to the Secretary of State PORT AU PRINCE, June 12, 1923—noon. 77. Referring to the jurisdiction of Claims Commission French Minister here in notes to the Haitian Government and myself has pointed out that three claims of French citizens occurred after May 1916 and suggests that these might properly be referred to the Arbitral Tribunal to be appointed to consider French claims prior to 1913 and requested my opinion. I can see no objection to such an arrangement. President Borno informed me that if other governments desired the same treatment for claims of their nationals arising after May 3, 1916, the Haitian Government would approve. RUSSELL 438.00/264: Telegram The High Commissioner in Haiti (Russell) to the Secretary of State PORT AU PRINCE, June 15, 1923—4 p.m. [Received 7:24 p.m.] 82. Department's 62, May 28, 5 p.m. Haitian Government agrees to limiting jurisdiction of Claims Commission to claims arising before May 3d, 1916. RUSSELL 438.00/263 The Secretary of State to the High Commissioner in Haiti (Russell) No. 116 WASHINGTON, July 9, 1923. SIR: Referring to your cable No. 77, June 12, noon, in which you inform the Department of the French Minister's suggestion that three French claims arising since May, 1916, be referred to the arbitral tribunal to be appointed to consider French claims prior to 1913, and of President Borno's statement that the same treatment will be accorded to the claims of the nationals of other governments if they so desire, the Department advises you that it perceives no objection to the procedure suggested. I am [etc.] For the Secretary of State: 438.00/289 The High Commissioner in Haiti (Russell) to the Secretary of No. 215 State PORT AU PRINCE, August 11, 1923. SIR: I have the honor to report that an exchange of notes in regard to French claims has finally been agreed upon between the French and Haitian Governments, and it is my understanding will probably be signed today. At the last moment, the French Government claimed an extension of six months from August 31, 1923, for the presentation of claims. This was finally reduced to four months, and in view of the fact that there were Spanish, Danish and other like claims to be submitted, the Commission extended the date for the presentation of all claims to the 31st of December, 1923. A copy of the letter of the Claims Commission to the Secretary of State for Foreign Affairs, dated August 10, 1923, is herewith enclosed." The particular attention of the Department is invited to that part wherein the Commission states its intention not to formally announce this decision until the latter part of the present month. I have [etc.] JOHN H. RUSSELL REJECTION OF THE DEMAND OF FRENCH BONDHOLDERS FOR THE REDEMPTION IN GOLD OF THE HAITIAN LOAN OF 1910 838.51/1373a: Telegram The Secretary of State to the Chargé in Haiti (Dunn) WASHINGTON, December 16, 1922—5 p.m. 126. For General Russell. National City Bank advises Department that members of French Parliament have asked Minister of Foreign Affairs what measures he expects to take to obtain payment in gold of coupons of Haitian bonds of 1910. When this was known offering of these bonds on French bourse was completely stopped. There appears, therefore, to be serious possibility that French holders of 1910 bonds may demand payment in gold. National City Bank's lawyer advises that French courts in such case might permit attachment of funds on deposit in Paris. To avoid this possibility the National City Bank "Not printed. requests that instructions to them in Hord's letter of November 22nd31 be changed so that francs held in Paris may be held in general account of National City Bank and not in any special account or for the account of the Haitian Government, and that instructions should state that such deposits are to be held by bank subject to further orders of Financial Adviser in reference thereto. It also suggests that any funds now deposited to credit of General Receiver in Paris might be transferred temporarily in francs to New York, to obviate possibility of attachment by bondholders. National City Bank points out that provisions of 1896 and 1910 contracts do not require publication by fiscal agent of notice of redemption. In view of possible complications it would seem better that Haitian Government should instruct Haitian Minister in Paris to publish required notices, stating definitely that redemption will be at rate of 1,000 francs for one thousand franc bond, 500 francs for five hundred franc bond, etc. National City Bank suggests that instead of depositing francs with fiscal agents of French loans in advance of day of redemption, Haitian Government arrange, if possible, with French fiscal agents to accept National City Bank's guarantee of payment for all redeemed bonds and their commissions, in French francs, and not in gold, when French bank draws on National City Bank, through Paris branch, and delivers redeemed bonds to Paris branch. The French loan contracts apparently do not provide for the deposit of francs with the fiscal agents at time of publishing notice of redemption. National City Bank also suggests that Mr. Hord instruct bank that it need not comply with second paragraph of Hord's letter of November 22nd regarding notification to fiscal agents of purchases and deposits of francs. 1896 loan contract apparently does not require any specific period for publication of notice prior to redemption. Unless there is something in Haitian or French law to prevent, it would, therefore, appear possible to redeem 1896 bonds on December 31st, the next interest date. National City Bank suggests that it might be possible to allow Haitian Government interest rate higher than one and one-half per cent now allowed, if bank could expect that funds would remain on deposit with it for a definite period. Since 1910 loan contract requires three months' notice it would seem that the greater portion of deposits would remain with bank for that period, especially as "Not printed. purchases of bonds in open market are said to have ceased, as result of cessation of trading in 1910 bonds on bourse. In view of very serious embarrassment which would result if any action of French bondholders should delay refunding plans, Department believes that suggestions of National City Bank should receive careful consideration and that instructions should be sent to bank at once dealing with the points indicated. Please inform Department of any steps taken. HUGHES 838.51/1479a : Telegram The Acting Secretary of State to the Chargé in Haiti (Dunn) WASHINGTON, December 29, 1922-2 p.m. 127. For General Russell. National City Bank informs Department that Haitian Minister in Paris is cabling Government requesting authorization to deposit approximately 27,000,000 francs with the fiscal agent of the 1896 loan for redemption of that loan. National City Bank suggests that such deposit should be made in form of special trust fund for benefit of the 1896 bondholders and for them alone, to prevent possible attachment by 1910 bondholders. Department suggests that Haitian Minister be instructed to confer with Paris counsel for National City Bank regarding form in which deposit should be made. National City Bank also states that Haitian Minister in Paris consulted fiscal agent of 1910 loan regarding publication of notice and that fiscal agent objected to publication, referring to their letter of November 22 to Haitian Government demanding payment in gold.32 You should forward copy of this letter to the Department immediately and keep it fully advised regarding all developments in this matter. National City Bank suggests that Haitian Minister in Paris should be instructed to publish notice regarding redemption of 1910 bonds without regard to fiscal agent's protest. Department commends this suggestion to your consideration, since there appears to be nothing to prevent in 1910 loan contract, and since such action appears necessary to assert right of Haitian Government to pay bonds in francs. |