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FOREIGN RELATIONS, 19 4 2, VOLUME VI


638.3931/19
    The Secretary of State to the Minister in Haiti (White)
No. 392                          WASHINGTON, February 17, 1942.
  SIR: Reference is made to the Legation's despatch no. 795 of Feb-
ruary 4, 1942, regarding the proposed exchange of notes by which this
Government would waive its most-favored-nation rights under the
trade agreement with Haiti in respect of tariff preferences accorded
by the latter to the Dominican Republic in the Haitian-Dominican
Treaty of Commerce signed August 26,1941.
  The Legation reports that, apparently having in mind loss of reve-
nue to Haiti which might result from the treaty, President Lescot has
suggested that the Legation withhold official transmittal of the draft
exchange of notes to the Haitian Government and thus enable the
latter to present to the Dominican authorities as a reason for postpon-
ing ratification of the treaty the excuse that the United States has not
yet officially replied to Haiti's request for its views on the matter.
  The Department is of the opinion such an excuse would place this
Government in a false position. The facts are that this Government
has raised no objection to the treaty on the basis of the provisions of
the Executive Agreement of September 13, 1941,&quot; and that it is pre-
pared to release Haiti from its most-favored-nation obligations under
the trade agreement in respect of tariff preferences granted to a con-
tiguous country in accordance with the formula recommended by the
Inter-American Financial and Economic Advisory Committee. If
the Haitian Government should give the Dominican Government an
impression contrary to these facts, our relations with the Dominican
Republic might be affected unfavorably. For your own information,
imminent trade-agreement negotiations with the Dominican Republic
might be prejudiced. In the light of the foregoing, you should ex-
plain why this Government is unable to concur in the course suggested
and at the same time transmit the draft notes and explanatory memo-
randum enclosed with the Department's instruction no. 353 of January
12, 1942. The Haitian Government can then decide whether it wishes
to proceed with the exchange of notes.
  With regard to Haiti's most-favored-nation obligations to other
countries, including the United Kingdom and Canada, it is made clear
to the Haitian Government in the explanatory memorandum referred
to that if the tariff reductions accorded to the Dominican Republic
are extended to any other country, this Government would expect that
they would be extended immediately and unconditionally to the United
States.
  Very truly yours,                    For the Secretary of State:
                                                   DEAN ACHESON
  Executive Agreement Series No. 220; 55 Stat. (pt. 2) 1348; for correspond-
ence regarding this agreement, see F'oreign Relations, 1941, vol. vii, pp.
322 if.


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