redeemed shall be determined by lot at public drawing conducted by the Contaduría General de Hacienda at Santo Domingo City within one week on either side, of the first day of November, or May, as the case may be, and notice of the series and numbers of such bonds to be so redeemed and paid shall be given by the Contaduría General de Hacienda to the Designated Depositary, hereinafter mentioned, thirty days in advance of each redemption date, and such notice shall be published at least once each week during the thirty days immediately preceding and following each redemption date in the Official Gazette of the Dominican Government and in one of the daily newspapers in the City of Santo Domingo, and in one of the daily newspapers in the City of New York. All interest upon the bonds so selected for redemption shall cease from and after the designated date of redemption. Both principal and interest shall be payable either in Santo Domingo City, at the principal office of the Designated Depositary for the Dominican Republic, or at any of its branch offices in the Dominican Republic, or at its office in the City of New York. 6. The said bonds are hereby declared to be exempt from the payment of taxes of any kind whatsoever of the Government of the Dominican Republic or of any local authority therein. 7. For the payment of the interest on said bonds, as it falls due, and of the principal, the good faith of the Dominican Republic is hereby irrevocably pledged, and said bonds and the obligations created thereby, shall not be impaired by any law or decree which the Government of the Dominican Republic or any authority thereof may subsequently enact or issue, or by any interpretation thereof, or by any interpretation of any law or decree heretofore enacted or issued, but said bonds when duly issued shall constitute a legal and binding obligation on the Government of the Dominican Republic until properly redeemed and paid. 8. There is hereby pledged, with the consent of the Government of the United States, from the customs revenues of the Dominican Republic, such amounts as may be required for the payment of the stated interest of said bonds; and, to the amortization fund for the redemption and payment of said bonds on the redemption dates hereinbefore provided, the further sum per annum, to be deposited in equal monthly installments, beginning January 1, 1918, of an amount equal to one-twentieth of the total amount of the bond issue. The sums pledged in this paragraph shall constitute an additional charge upon all customs revenues of the Republic collected in accordance with the convention of February 8, 1907, between the United States of America and the Dominican Republic, after their application to the first four objects designated in Article 1 of that convention, and before any payment is made to the Dominican Government. Additional payments for account of the amortization fund herein provided may be made at any time by the Dominican Government in its discretion. 9. The General Receiver of Dominican Customs is hereby authorized to make monthly deductions, commencing January 1, 1918, from the customs receipts of the Dominican Republic, to cover the amounts referred to n the preceding paragraph, and in accordance with the official advice thereof furnished him by the Contaduría General de Hacienda, and immediately to deposit said amounts with the Designated Depositary for the Dominican Government in a special account entitled "Dominican Republic 5 per cent Bond Issue 1918"; and such monthly deductions and deposits shall be regularly continued by the General Receiver of Dominican Customs until all of the bonds herein provided for shall have been redeemed and paid. 10. The foregoing provisions in regard to the payment of interest on said bonds, and of the principal, shall be deemed to be in the nature of a continuous appropriation, and no further appropriation for such purpose shall be required. The General Receiver of Dominican Customs is authorized to make such deductions and deposits; the Designated Depositary for the Dominican Republic is authorized and directed to make such payments; and the Contaduría General de Hacienda is authorized and directed to allow due credits in accounts therefor. 11. The Designated Depositary shall render accounts to the Contaduría General de Hacienda covering the periods ending June 30th and December 31st, of each year, of all receipts, accruals of interest, and payments from the account "Dominican Republic 5 per cent Bond Issue 1918," and shall surrender with such statements of account all coupons and bonds redeemed and paid. Upon verification of such accounts the Contaduría General de Hacienda shall make entry thereof, allow credit in account therefor, and cancel and destroy the coupons and bonds so rece ved. 12. Such funds as may be necessary to defray the expense of printing the bonds, advertising notices relating thereto, and other expenses incidental to the issuance, redemption, and cancellation thereof, are hereby appropriated out of any moneys in the Treasury not otherwise appropriated. H. S. KNAPP, Rear Admiral, United States Navy Issued at Washington, D. C., U. S. A., by authority of the Government of the United States, PROPOSED REVISION OF THE CUSTOMS TARIFF OF THE File No. 639.003/44 The Secretary of State to the Secretary of the Navy (Daniels) WASHINGTON, February 25, 1918. SIR: I have the honor to acknowledge receipt of your note of February 4, transmitting a despatch from the Military Governor of Santo Domingo, requesting an amendment of Article 6, paragraph 8, of the Dominican traffic [tariff] law to permit the importation of certain necessary articles, and requesting that the Navy Department be informed of the action taken. In this connection this Department considers that the question of the amendment of Dominican law is one to be initiated and determined by the Military Government of Santo Domingo, subject to the approval of the Department of State. It is requested that the Military Governor, Admiral Knapp, be informed of the above and that this Department approves the desired amendment. The Department has under consideration the question of the addition of cotton-spraying machines and stump pullers to the list of agricultural instruments to be exonerated from duty and will inform you later in this connection. I have [etc.] For the Secretary of State: ALVEY A. ADEE Second Assistant Secretary File No. 639.003/47 Memorandum of the Office of the Solicitor for the Department of State WASHINGTON, February 28, 1918. DEAR MR. WOOLSEY: I am not informed as to the conversation which, it appears, you have had with a representative of the Latin American Division on this subject, but I submit the following observations respecting the request of that Division that this office 'Not printed. draw up an agreement between the United States and the Military Government of the Dominican Republic: which will provide for the recognition of the President of the United States of modifications in the import duties of the Dominican Republic that may from time to time be recommended as needful by the Military Government there, and thus make any such action by the Military Government conform to Article 3 of the convention of 1907. The treaty provisions referred to are as follows: Until the Dominican Republic has paid the whole amount of the bonds of the debt, its public debt shall not be increased except by previous agreement between the Dominican Government and the United States. A like agreement shall be necessary to modify the import duties, it being an indispensable condition for the modification of such duties that the Dominican Executive demonstrate and that the President of the United States recognize that, on the basis of exportations and importations to the like amount and the like character during the two years preceding that in which it is desired to make such modification, the total net customs receipts would at such altered rates of duties have been for each of such two years in excess of the sum of $2,000,000 United States gold. If I understand it correctly, the desire of the Latin American Division is that a blanket agreement be made under these treaty provisions to cover all modifications recommended by the Military Government. In view of the treaty requirements as to the demonstration by the Dominican Executive and the recognition by the President of the United States of a certain state of facts as to customs receipts, it would seem that the desired blanket agreement could not well be made and that in case of any particular modification in the import duties desired by the Military Government, such demonstration and recognition would have to take place before an agreement could be made in the particular instance. 1 By reference to the attached papers it will be seen how this matter of modification of import duties was dealt with at that time, in accordance with the treaty requirements mentioned, namely, by note from the Dominican Minister advising of the proposed changes in duties and making the demonstration mentioned, and by an answering note from the Secretary of State, embracing the recognition by the President of the fact required to be demonstrated, and, therefore, the agreement of the Government of the United States to the proposed modification. On the other hand, it is recognized that the Latin American Division may have in mind that the United States Government and the Military Government of Santo Domingo, in their relations with each other, are not bound by the requirements of the treaty mentioned, and that, therefore, it is advisable to make a new agreement to take the place of the provisions of Article 3 of the treaty, which shall, at the same time, conform as nearly as possible thereto. If that be the view which the Department takes of the relationship in question, I should be glad to be so advised since I had supposed that the Military Government represented the Government of the Dominican Republic and, as such representative, is bound by the treaties in force with the Republic. J[OSEPH] R. B[AKER] 'Foreign Relations, 1911, pp. 139-40. File No. 839.00/2099 Memorandum of the Office of the Solicitor for the Department of State WASHINGTON, March 18, 1918. RELATIONSHIP OF THE MILITARY OCCUPATION AND GOVERNMENT IN THE DOMINICAN REPUBLIC TO THE DOMINICAN GOVERNMENT The question has arisen as to whether it is necessary for the Government of the United States to conclude an agreement with the Military Government in the Dominican Republic, installed by the authority of the United States, to cover a subject which is provided for by Article 3, of the treaty of 1907, between the United States and the Dominican Republic. In other words, if the existing treaty provisions be held to be now in effect as between the United States and the Military Government mentioned, it apparently becomes unnecessary to conclude a new agreement on the subject in question, which is that of modification of the tariff duties of the Dominican Republic. The present intervention of the United States in the affairs of the Dominican Republic took place formally on November 29, 1916, but certain previous events are of interest and importance in reviewing the question under consideration. The treaty of 1907, before mentioned, was entered into as expressed therein, in order to arrange for a settlement of the financial difficulties of the Dominican Republic, and provides: III. Until the Dominican Republic has paid the whole amount of the bonds of the debt its public debt shall not be increased except by previous agreement between the Dominican Government and the United States. A like agreement shall be necessary to modify the import duties, it being an indispensable condition for the modification of such duties that the Dominican Executive demonstrate and that the President of the United States recognize that, on the basis of exportations and importations to the like amount and the like character during the two years preceding that in which it is desired to make such modification, the total net customs receipts for each of such two years, at such altered rates of duties, would have been in excess of the sum of $2,000,000 United States gold. Despite the interest taken by the United States in Dominican financial affairs, under the treaty provisions above quoted, it appears that during the year 1915, and before, general conditions in the Dominican Republic were bad. There was injudicious expenditure of money, an increase in the public debt, and maladministration. Consequently, on December 17, 1915 [September 17, 1915], the American Minister to the Republic was instructed by the Department to endeavor to obtain the conclusion of a new treaty, providing for a financial adviser, to be appointed by the United States, and a constabulary officered by Americans, for the settlement by arbitration of pecuniary claims, and the survey of the Republic for purposes of taxation, and for the right of the United States to intervene in the Republic for the maintenance of a government adequate to protect life, liberty, and property. The Minister was further instructed that if he should find it impossible to conclude such a treaty, he should present a note containing the interpretation of the Government of the 'Foreign Relations, 1915, p. 321. United States, of said Article 3 of the treaty of 1907, as giving the United States the right to appoint a financial adviser to the Dominican Republic, and to organize a constabulary to be commanded by American officers, in place of the existing military organization.1 3 The occasion having arisen, such a note was presented on November 9 [19], 1915,2 which was replied to by the Minister of Foreign Affairs, denying that such right of intervention existed, and refusing to take the desired action. Thereafter matters went from bad to worse in the Republic, until on or about May 2, 1916, revolutionary forces gained possession of the Capital. On May 5, 1916, forces were landed from the U. S. S. Prairie, and on May 6 the President of the Republic requested the United States to take the Capital, but the next day canceled this request and resigned his office. Notwithstanding such cancelation, the forces mentioned occupied the Capital on or about the day last mentioned. Following the resignation of the President, the Council of Ministers took charge of the executive power, supported by the forces of the United States, until some weeks thereafter, when the Dominican Congress elected Doctor Francisco Henriquez, Provisional President, whose authority was never recognized by the Government of the United States. Under date of June 20, 1916, Admiral Caperton, "the Commander in Chief of forces of the United States in Santo Domingo," issued a proclamation stating that such forces had entered the Republic for the purpose of supporting the constitutional authority, and of putting a stop to revolutions and consequent disorder impeding the progress and prosperity of the country." The proclamation further stated that it was the intention to occupy immediately other "towns of the Republic" and that "it is not the intention of the United States Government to acquire, by conquest, any territory in the Dominican Republic, nor to attack its sovereignty, but our troops will remain here until all revolutionary movements have been stamped out, and until such requirements as are deemed necessary to insure the future welfare of the country have been initiated. and are in effective operation." During the latter part of June 1916 the Council of Ministers was officially advised by the American Minister that the Government of the United States had decided to take charge of the collection and. disbursement of all funds of the Dominican Government, placing these matters in the hands of the General Receiver, and on August 17 [18], 1916, the latter official was instructed to suspend payment of all funds to the Dominican Government until an understanding could be reached as to an interpretation of certain articles of the treaty of 1907, or until the Government of Doctor Henriquez was recognized by the United States." This suspension of payment continued until after the formal intervention of the United States. (See memoran 1Foreign Relations, 1915, p. 325. Ibid., 1916, pp. 224-25. |