File No. 838.77/163
The Secretary of State to
Minister Blanchard
No. 115
Department of State,
Washington,
March 2, 1917.
Sir: With reference to the Department’s cable
of March 1, 4 p.m., you are informed that on February 15, 1917, an
agreement was reached by Minister Ménos, representing the Government of
Haiti, and Mr. R. L. Farnham, the National Railroad Company of Haiti, on
the principal points in dispute regarding the railroad matter. A copy of
the agreements, a list of the points7 to be submitted to the Financial
Adviser for the Government of Haiti and a copy of a communication from
Mr. Farnham, dated February 16, 1917,4 are enclosed herewith, for your information.
In order to expedite the settlement of this entire question the
Department offered to use its good offices in bringing before the
Haitian Government two points which were considered as being outside of
the general discussion, but in which the railroad company is greatly
interested and which it desires to have settled at the earliest possible
moment by the Haitian Government. These two points are set forth in
detail in the letter of Mr. Farnham above referred to, and you are
instructed to present them without delay to the Government of Haiti. You
will state in this connection that the Government of the United States
is confident that the Government of Haiti will give these matters prompt
attention, and that it will issue proper instructions at the
[Page 831]
earliest possible moment for
the signature of the bonds. You will also ask that the Government of
Haiti take up as soon as possible the question of the payment of the
interest on the railroad bonds.
I am [etc.]
For the Secretary of State:
Frank L. Polk
[Inclosure]
[Untitled]
Between the undersigned, 1. The Government of the Republic of Haiti,
represented by M. Solon Ménos, its Envoy Extraordinary and Minister
Plenipotentiary at Washington on the one part;
2. The Compagnie Nationale des Chemins de fer d’Haiti, represented by
Mr. R. L. Farnham, its president, on the other part;
Both parties desiring to bring to an end all the differences and
litigations now existing between them, it is agreed:
Art. 1. The Compagnie Nationale des Chemins de fer d’Haiti agrees to
change the location of the main line of the railroad between St.
Marc and Bahon,—the present terminals—from that set forth in the
concessionary contract of the railroad to a more direct and shorter
route.
Art. 2. The definite location of the new route between St. Marc and
Bahon shall be determined by a commission of engineers, one
appointed by the Government of Haiti and one by the railroad
company, and such questions as this commission shall be unable to
agree upon shall be submitted to an engineer named by the Government
of the United States whose findings shall be accepted by both
parties hereto as final. This commission shall Consider and
determine all questions concerning the location and establishment of
the new line and the time of completion of the same, subject to
circumstances constituting force majeure
which term, considering the extraordinary conditions prevailing in
all manufacturing and transportation industries shall comprise
delays in the construction of the new line caused by inability, duly
established, to obtain deliveries of necessary material or delays in
the shipment of the same. Should the United States become involved
in war with another power such a contingency shall be considered a
condition of force majeure and the railroad
company shall suffer no penalty whatsoever for such delays in the
prosecution of construction as may result therefrom.
The work of construction of the new located line connecting St. Marc
and Bahon shall be commenced within four months from the date of the
final determination of the commission of engineers or the third
engineer in respect to the definite location and other details
concerning the change of route as set forth herein.
Art. 3. The company withdraws its demand for compensation on account
of increased cost of construction of the line over the modified or
changed route.
The company, while reserving all existing rights of route and
construction provided by said contract covering the present location
of the line between St. Marc and Bahon, with the view of
constructing all of such portions of the original line at such
future time as may be agreed upon between the parties hereto, also
withdraws its demand for compensation on account of the loss of
construction profits that would result from the immediate execution
of the said contract.
Art. 4. The Government of Haiti declares that it abandons, and hereby
does abandon the foreclosure proceedings instituted against the
company.
Done in triplicate at
Washington
the 15th of
February, 1917.
-
Solon Ménos
-
R. L. Farnham
