File No. 1199/262-265.

Minister McCreery to the Secretary of State.

AMERICAN LEGATION, Santo Domingo, August 28, 1907.

SIR: I have the honor to acknowledge the receipt of the department's unnumbered instruction of the 8th instant, confirming its telegram of the same date, and inclosing for my information and that of the Dominican Government a copy of the regulations promulgated by the President for the government of the customs receivership under the convention.

I inclose a copy of my note transmitting a copy of the regulations to the minister for foreign affairs for the information of the Dominican Government, and mentioning the compensation fixed by the President for Mr. William E. Pulliam as general receiver and Mr. James H. Edwards as assistant receiver of customs under the convention.

Copy and translation of Mr. Tejera's reply, stating that my note and inclosure were brought to the knowledge of the minister of finance and commerce, are herewith inclosed.

On the 24th instant the receiver-general exhibited his appointment to the minister of finance and commerce. The minister on the same date informed the receiver-general in writing that he had brought his appointment and that of the assistant receiver to the knowledge of the executive authority and that he had issued a notice announcing these appointments, taking effect the 1st instant.

I inclose the notice, dated the 24th instant, and a translation into Spanish of the regulations, as published in the Gaceta Oficial of to-day. A translation of the notice is also inclosed.

I have, etc.,

FENTON R. MCCREERY.

[Inclosure 1.]

Minister McCreery to the Minister for Foreign Affairs.

AMERICAN LEGATION,

Santo Domingo, August 22, 1907.

Mr. MINISTER: Referring to my note of the 9th instant, informing your excellency of the appointment of W. E. Pulliam and James H. Edwards, respectively, as general receiver and assistant receiver of customs under the Dominican-American convention of February 8, 1907, such appointments taking effect on the 1st instant, I have the honor to inclose for the information of your excellency's Government a copy of the regulations promulgated by the President of the United States for the government of the customs receivership under the convention.

Referring to item 2 of the regulations, I beg to inform your excellency that the compensation for Mr. Pulliam has been fixed at the rate of $6,000 per annum and of Mr. Edwards at the rate of $4,500 per annum, and that in addition thereto the former will receive a per diem allowance of $9 and the latter a per diem allowance of $4 as commutation for their actual and necessary expenses. FENTON R. MCCREERY.

I have, etc.,

[Inclosure 2.-Translation.]

The Minister for Foreign Affairs to Minister McCreery.

DOMINICAN REPUBLIC, Santo Domingo, August 27, 1907.

Mr. MINISTER: I have received your excellency's communication, dated the 22d instant, and the copy of the regulations made by the President of the United States for the government of the general receivership of customs of the Republic, established by virtue of the Dominican-American convention of February 8 of the present year.

I have noted that the salary fixed for Mr. Pulliam is $6,000 per annum and that for Mr. Edwards $4,500 per annum, and that in addition thereto the former will receive a per diem allowance of $9 and the latter a per diem allowance of $4 for their actual and necessary expenses.

I have brought the above-mentioned particulars to the knowledge of the minister of finance and commerce.

I improve this opportunity to renew, etc.,

E. TEJERA.

[luclosure 3.-Translation.]

[From Gaceta Oficial, August 28, 1907.]

The department of finance and commerce makes known that the President of the United States of America, in exercise of the faculty conferred upon him by article 1 of the Dominican-American convention of February 8 of the present year, ratified by the National Congress on May 3, has appointed W. E. Pulliam general receiver and James H. Edwards assistant receiver of the customs of the Republic.

These appointments take effect from August 1.

SANTO DOMINGO, August 24, 1907.

FEDERICO VELAZQUEZ H., Minister of Finance and Commerce.

File No. 1199/268-269.

No. 43.]

Minister McCreery to the Secretary of State.

AMERICAN LEGATION,

Santo Domingo, September 19, 1907. SIR: I have the honor to confirm my telegram of the 12th instant, as follows:

Congress met 10th and organized period. Yesterday President's message was read, enabling act submittted and referred to committee on finance.

I also confirm my telegram of the 16th instant, as follows: Congress to-day passed act authorizing executive power to issue and sell bonds as required by the convention.

I inclose copy and translation of an act passed by the Dominican Congress on the 16th instant, approved by the President on the 17th instant and published in the Official Gazette on the 18th instant, authorizing the executive power to issue and sell, through the secretary of finance and commerce, in such form and denominations as it may deem for the best interest of the Republic, bonds to the amount of $20,000,000 gold, secured by the Dominican-American convention of February 8, 1907, and by the import and export duties collected in the Republic, and in accordance with the provisions thereof, and payable in fifty years, bearing interest at the rate of 5 per cent per annum, payable semiannually, and redeemable after ten years at 102 per

cent and requiring payment of at least 1 per cent per annum for amortization, under such regulations as the secretary of finance and commerce may prescribe.

The act exempts the bonds and interest from all taxes and duties now or hereafter established by the Republic, and provides that the bonds shall conform to the provisions of the convention, shall contain such provisions as the secretary of finance and commerce may prescribe, and that each bond shall bear a certificate executed by said secretary or the fiscal agent, authenticating such bond as a bond issued under the provisions of the convention.

The act also provides that the bonds or the proceeds thereof shall be applied by the executive power to the objects mentioned in the convention; and provides for the appointment by the executive power of a depositary, an agent, and registrar of transfers, and a fiscal agent to act in connection with the issue and sale of the bonds, and the receipt and distribution of the proceeds thereof, and in connection with the adjustment and settlement of debts, claims, and concessions, and in connection with the service of the loan, in accordance with the provisions of the convention; and provides that the executive power shall fix the compensation for these services within certain mentioned limitations.

In my telegram of June 22, 1907, relative to the loan contracts as changed and amended by the Dominican Congress, I mentioned that the minister for foreign affairs had said on that date that, should the amended contracts not be accepted by the bankers, the Congress would be convened whenever necessary to pass upon any changes made by the bankers in the amended contracts.

I have, etc.,

ACT OF DOMINICAN CONGRESS AUTHORIZING EXECUTIVE TO ISSUE AND SELL $20,000,000 BONDS.

[From Gaceta Oficial, September 18, 1907.]

Legislative Branch.

The national congress, in the name of the Republic, on the initiative of the executive, the matter being declared urgent;

By virtue of the powers conferred upon it by article 23 of the constitution; in order to comply with the provisions of the convention concluded between the Republic and the United States of America on February 8, 1907, and approved by this high body on May 3 of the same year; and in order to provide for the execution, issue, and sale of the bonds to which said convention refers; in view of the decree in which the loan for which the bonds are to be issued and sold is declared to be of public utility; resolves:

ARTICLE 1. To authorize the executive, through the secretary of finance and commerce, in the form and denominations and under the conditions which he deems most suitable to the interests of the Republic, with the security of the above-mentioned convention, and secured by the export and import duties collected in the Republic in accordance with the stipulations thereof, to emit and sell bonds of the Republic to an amount not to exceed 20,000,000 gold dollars of the United States of America at the present standard of weight and purity, bearing interest at 5 per cent per annum, payable semiannually in said gold coin, extinguishable by sinking fund in fifty years and redeemable after the lapse of ten years, at 1024 per cent of their face value, a payment of at least 1 per cent per year being required for their extinction, in accordance with the regulations to be issued by the said secretary of finance and commerce.

(Additional) paragraph 1. Both the bonds and the interest which they bear shall be exempt from all taxes or duties, existing or to be established in future by the Republic.

(Additional) paragraph 2. The bonds which are issued must be in accordance with the stipulations of the convention dated February 8, 1907, approved by this high body on May 3 of the same year. They must embody the provisions adopted by the secretary of finance and commerce, and a certificate must be attached to each in the form and with the provisions prescribed by said secretary of finance and commerce, the certificate to be signed by him or the fiscal agent. The certificate shall state that the bonds are issued by virtue of the provisions of the aforementioned convention.

ART. 2. These bonds or the proceeds therefrom shall be applied by the executive to the purposes indicated in the convention.

ART. 3. The executive is also authorized to appoint a depositary, an agent, and a recorder of transfers, as well as a fiscal agent, who shall be engaged in connection with the issue and sale of the bonds, with the receipt and distribution of the proceeds of said sale, with the adjustment and settlement of debts, claims, and concessions, and with the payment of interest, etc., on the loan, in accordance with the provisions of the aforementioned convention.

(Additional) paragraph. One single company, bank, or association of private bankers may act as depositary, agent, and recorder of transfers, and fiscal agent. or these duties may be intrusted to different agents, according as the executive shall deem best, it being the duty of the said executive to determine the powers and duties belonging to each of them, and to pay or agree to pay such remuneration as he deems most proper for their services, though the pay of the depositary shall not exceed one-half per cent of the total sum paid to the holders of bonds of the Republic, of claims, and of concessions, who have accepted the adjustment proposed, or the adjustment which may be reserved for the payment of debts, claims, and concessions of those holders who may not have accepted the adjustment proposed, besides the expenses incurred by the depositary in acting as such; nor more than $250 per year to the agent and recorder of transfers, and also not more than $0.50 to the fiscal agent for each certificate of authenticity which he issues for each bond, nor more than $10,000 per year for the incidental expenses incurred by the said fiscal agent in the operations connected with the payment of interest, etc., on the loan ("service" of the loan).

The executive is also authorized to pay from the proceeds of said bonds the sum necessary to cover the expenses of preparation, issue, and sale thereof. This resolution abrogates every other law, decree, or resolution which is contrary to it.

Let it be sent to the executive for the purposes of the constitution. Given in the Palace of the National Congress, September 16, 1907 (sixtyfourth of independence and forty-fifth of restoration).

RAMON O. LOVATON,

President.

A. ACEVEDO,

C. A. NOUEL,

Secretaries.

FINAL REPORT OF THE TRANSACTIONS OF THE DOMINICAN CUSTOMS RECEIVERSHIP UNDER THE MODUS VIVENDI, COVERING THE TWENTY-EIGHT MONTHS, APRIL 1, 1905, TO JULY 31, 1907. [Extract.-Exhibits not printed.]

OFFICE OF THE GENERAL RECEIVER OF DOMINICAN CUSTOMS,

Santo Domingo, Dominican Republic, September 23, 1907. SIR: Pursuant to the terms of the modus vivendi entered into between the Government of the Dominican Republic and the United States March 31, 1905, that temporary measure expired by limitation at the close of business July 31, 1907, the American-Dominican treaty, 1907, at once became effective August 1, 1907, under the general regulations governing the Dominican customs receivership promulgated by executive order July 25, at the White House, Washington, by the President of the United States.

The report submitted herewith, as indicated by the annexed tables, is supplemental to those already rendered by the former controller and general receiver, covering the two periods, of one year each, embraced within the inclusive dates, April 1, 1905, to March 31, 1907. As a matter of four complete months have expired since the rendition. of the last general report and review of transactions, separate tabulated statements for the four months, April 1 to July 31, 1907, have been prepared, with comparative tables for the corresponding period of the year immediately preceding (1906).

In addition to the data mentioned above, and in order that a comprehensive and succinct statement may be available of the transactions for the entire history of the modus vivendi, there have been prepared complete recapitulated tables, segregating collections and showing in detail dispositions of all funds handled by the receivership. The narrative portion of this report is intended as a compendium and will deal only in general terms of results actually accomplished with the assistance of the United States in the fiscal affairs of the Dominican Republic, particularly as the fact is well appreciated that the administrative features of the work of the receivership during the past two years already have been thoroughly discussed. The last report on this subject only recently having left the printer, it is thought unnecessary, and perhaps presumptious, for the undersigned to make additional comment along these lines, especially as the matters reviewed were incident to the administration prior to the date that he assumed charge of same.

AMERICAN ASSISTANCE.

As it portrays the actual condition extant in the Dominican Republic during the early part of the year 1905, when a crisis was at hand which caused a helpless people to call for disinterested assistance from the outside, subsequently rendered by the United States, the liberty is taken of quoting herewith the last paragraph of the message dated February 15, 1905, of President Roosevelt, addressed to the American Senate

We now have a great opportunity to secure peace and stability in the island, without friction or bloodshed, by acting in accordance with the cordial invitation of the governmental authorities themselves. It will be unfortunate from every standpoint if we fail to grasp this opportunity; for such failure will probably mean increasing revolutionary violence in Santo Domingo, and very possibly embarrassing foreign complications in addition. This protocol affords a practical test of the efficiency of the United States Government in maintaining the Monroe doctrine.

And, likewise from an earlier portion of the same message, a prediction which has been verified:

Under it [the protocol of an agreement] the custom-houses will be administered peacefully, honestly, and economically

*

For the time which elapsed and represents the life of the modus vivendi-twenty-eight months-the important, difficult, and trying work assigned was successfully performed by the agents selected by the United States Government. How well that stewardship has been discharged to the satisfaction of all concerned is evidenced by the fact that not one single complaint nor line of criticism has been received from the Dominican Government, nor from any consul or special representative, residents of the city of Santo Domingo, par