FOREIGN RELATIONS, 1942, VOLUME VI



838.51/4438a
     The Acting Secretary of State to the President of the
                ExAport-Import Bank (Pierson)

                                     WASHINGTON, March 21,1942.
  MY DEAR MR. PIERSON: Reference is made to conversations between
officers of the Department and of the Export-Import Bank with
President Lescot of the Republic of Haiti and Mr. Williams, Presi-
dent of the National Bank of the Republic of Haiti, regarding the
extension of financial assistance to the Government of that Republic
through the medium of the National Bank of the Republic of Haiti,
in order to alleviate the financial crisis which has arisen primarily
as a result of the shortage of shipping facilities.
  The Department has carefully considered the Haitian financial
situation and, due to the uncertainties in regard to the shipping fa-
cilities which will be available to Haiti in the coming months, feels
strongly that the opening by the Export-Import Bank of a line of
credit of $500,000 in favor of the National Bank of the Republic of
Haiti, to be utilized only when necessary to maintain the Haitian
economy, would be advisable at this time.
  The Department has received assurances from the President of the
Republic of Haiti that expenditures of the Government of Haiti will
be kept at a minimum and that new tax legislation will be shortly
enacted.
  Sincerely yours,                              SUMNER WELLES

838.51/4435
Memorandum of Conversation, by Mr. Willard F. Barber of the
              Division of the American Republics

                                  [WASHINGTON,] April 1, 1942.
Participants: Mr. Warren Lee Pierson, President of the Export-
                Import Bank (Meeting held in his Office).
              Mr. Arey, of the Bank.
              Mr. Lee Baron, of the Bank.
              Mr. Whittemore, of the Bank.
              Mr. W. H. Williams, of the National Bank of Haiti.
              RA-Mr. Barber.
  Mr. Pierson and Mr. Williams discussed the general financial and
revenue situation with which the Haitian Government is confronted,
in view of present shipping shortages and the resulting diminution
of export and import duties on which Haitian revenues are so largely
based. Mr. Williams stated that new taxes were contemplated in
order to increase the Government's revenues, but that he felt it im-
perative to have a reserve fund on which to rely in case of dire



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