Evening star. [volume] (Washington, D.C.) 1854-1972, 1905-01-23
TO SAVE SAN DOMINGO
THIS GOVERNMENT WILL LEND
ITS AID.
Will Control the Fiscal Affairs of the
Island Republic-Not
Protectorate

Secretary Hay has authorized the issue Of
the following statement regarding the sit
| uation in San Domingo:
The Dominican republic, after mature
consideration of existing conditions, has
fol- mally and freely invited the government
of the United States to assist it in the ad-
miEistratiOr of Its customs revenues, and
to aid it in establishing its fiscal system
upon firm and businesslike basis. The
government of the United States having
been explicitly repeatedly and emphatically
| informed by more than one of the great
powers that it ought either to try to evolve
some order out of the financial chaos in the
Dominican, republic or assent to certain Eu-
ropean creditors of that republic doing
this and to the administration of Domini-
can custom houses by them, supported by
| their warships, has deemed 1t advisable in
view of the unfortunate financial conditions
in Santo Domingo, which for the last ten
years have been rapidly growing worse, to
accept the invitation of the Dominican gov
eminent. and, therefore representatives
of this government and of Santo Domingo
have signed memorandum of a proposed
agreement looking to the American control
OF the fiscal affairs, upon the request, and
with the consent of the Dominican gov
eminent
the territorial integrity of the Dominican
republic. 1t is not the purpose of this gov
eminent to assume a protectorate over
Santo Domingo. or to interfere with, or
participate in. its domestic affairs any
further than The collection of its customs
revenues. the necessary revision of its tariff
laws and the adjustment, through properly
constituted tribunals or commissions, OF It's
foreign claims and it's economic and fiscal
organization on a sound basis may make
it essential to do. President Morales has
signed a decree which will be published
today in which the government OF the
nj cd &c officially asked TO take full
charge of all the Dominican custom houses;
to name all the employees and to collect all
the revenues, 40 per cent of which are to
be returned to the Dominican government
for its current expenses. The balance is to
be used to meet the interest charges on
the acknowledged bonded indebtedness and
other just obligations Of the republic. Any
surplus will be turned over to the Domlnl-
can government The obligations repre-
senting the bonded Indebtedness are largely
owled by foreign creditors
The government of the United States does
no. guarantee the debts OF Santo Domingo,
or agree to provide for the payment of
them, but only promises to try to so or
ganze and adjust the fiscal administrator
OF the country that in time their lquldatlon
may be accomplished automatically, ana
on a basis of equity toward all creditors.
1t is believed that if the Dominican reVe-
nues are wisely collected and disbursed an
legitimate claims against the republic VIII
be ultimately satisfied. In this connection
it may be added that under the award OF
the tribunal of arbitratioIs of July Ii, l9o4'
between the United States ana Santo 10
mingo, in the sum of about St'oooWV the
United States was given the right eventual
w to take possession of the four principal
ports on the northern side OF the lslaho,
and under the award of, the nscal agent
appointed by the United States is now IN
possession of the important custom house
at Puerto Plata
The unfortunate financial condition OF
Santo Domingo more than once in the last
h. init cd
government question fraught with lmni,
nent peril. The government OF the umteo
States could not, with due seif-respect, al
low the impression to deepen and gain cur
rency that the Monroe doctrine can be USED
as a shield by the American republic TO
deny justice to other governments. many
foreign claims are just beyond peradVen-
ture and being held by citizens OF various
governments. the problem became lncreaS-
ingly more difficult as to how those claims
could be satisfied under existing conditions
with fair treatment toward all In some
respects a still more embarrassing feature
of the situation has been that the Domln-
lean government has been compelled by
force to pay grossly eXorbitant claims, anu
the question has arisen whether the United
States should interpose in such cases. Such
interposition has never been Tesorted TO
perhaps but once in our history. Another
deplorable feature of the financial sltua-
ton in Santo Domingo is that her reVe-
nues have been crippled by granting, for
song, valuable concessions, winch We're eN-
empted by stipulation, from all taxation.
Her interests have compelled the Domin-
lean government to disregard these prom
ises of exemption from taxation, and TINS
has resulted in numerous and increasing
appeals to the Department of State to in
terfere. The Dominican government itself
reached the conclusion that its only hope of
escape from bankruptcy was through the
assistance of the United States government
in the organization of it's finances. In view
of these grave conditions the President has
deemed it wise at this time to assent to
the strongly expressed wish of the Domin-
lean government.