FOREIGN RELATIONS, 1942, VOLUME VI



  As a result of further study, this Government is glad to be able
to propose a solution of the matter by an exchange of notes with the
Government of Haiti, along the lines of the enclosed draft notes, in
which the Government of the United States would agree not to invoke
the pertinent provisions of the trade agreement for the purpose of
claiming the benefits of the tariff preferences to the Dominican Re-
public provided for specifically in the Treaty of Commerce signed
on August 26, 1941. It would of course be understood that if such
preferences should be extended by Haiti to any country other than
the Dominican Republic they would be extended immediately and
unconditionally to the United States.
  This Government will continue, of course, to reserve its rights under
the most-favored-nation provisions of the trade agreement with re-
gard to tariff preferences to the Dominican Republic not specifically
provided for in the Treaty of Commerce.


638.3931/19
       The Minister in Haiti (White) to the Secretary of State

No. 795                         PORT-AU-PRINCE, February 4, 1942.
                                          [Received February 5.]
  SIR: I have the honor to refer to the instruction no. 353 of January
12, 1942, 638.3931, setting forth that the Department is prepared to
waive its rights to most-favored-nation treatment in regard to cer-
tain commodities mentioned in the Dominican-Haitian Treaty of Com-
merce signed August 26, 1941, as per the draft memorandum and
exchange of notes attached to the instruction.
  The instruction authorizes me to transmit the memorandum and
draft to the Haitian Government.
  In this connection I am informed that the following countries
would be entitled to claim most-favored-nation treatment from Haiti,
in addition to the United States:-France, Holland, the United
Kingdom of Great Britain and Northern Ireland, Canada, Belgium,
Luxemburg, Denmark, Iceland, Greenland and Switzerland.
  The Banque Nationale is fearful of the effects of the tariff reduc-
tions, to be accorded by this Treaty to the Dominican Republic, upon
Haitian revenues.
  In conversation with President Lescot, the latter indicated that he
was not disposed to promote the ratification of the Treaty at this time
and that the Dominican authorities are also now considerably less
enthusiastic than formerly. He, therefore, expressed a preference
that, if possible, I should not bring the Department's waiver of most-
favored-nation treatment to the attention of the Haitian Government
for the present. The effect of such non-action would be that, if the



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