Haitian independence debt

De Haitian independence debt dey involve an 1825 agreement between Haiti den France dat dey include France demanding an indemnity of 150 million francs insyd five annual payments of 30 million to be paid by Haiti insyd claims over property wey include Haitian slaves dat be lost through de Haitian Revolution insyd return for diplomatic recognition.  Haiti be forced to take a loan for de first 30 million, den insyd 1838 France agreed to reduce de remaining debt to 60 million to be paid over 30 years, plus de final payment paid insyd 1883. However, The New York Times estimates dat because of oda loans taken to pay off dis loan, de final payment to debtors be actually insyd 1947. They approximated that in total 112 million francs was paid in indemnity, which when adjusted for the inflation rate would be $560 million insyd 2022, but considering dat if e have been invested insyd de Haitian economy instead, e can be valued at $115 billion. Insyd 2025, France dey create a commission to study de impact of de debt France dey impose on Haiti.

Restoration France ein demand of payments insyd exchange for recognizing Haiti ein independence dey deliver to de country by several French warships insyd 1825, twenty-one years after Haiti ein declaration of independence insyd 1804. Despite several revolutions insyd France after dat date (July Revolution, French Revolution of 1848, Paris Commune), successive governments, be they imperial, monarchist or republican, continued enforcing de debt den coercing Haiti to pay. Haiti had to take a loan insyd 1875 to pay back de final portion of de original loan, den de bank dat benefited most from dis be Crédit Industriel et Commercial. Even after de indemnity be paid, Haiti had to continue paying de oda loans, den de government of de United States funded de acquisition of Haiti ein treasury insyd 1911,Douglas, Paul H. from Occupied Haiti, ed. Emily Greene Balch (New York, 1972), 15–52 reprinted in: Money Doctors, Foreign Debts, and Economic Reforms in Latin America. Wilmington, Delaware: Edited by Paul W. Drake, 1994. den insyd 1922, de rest of Haiti ein debt be moved to be paid to American investors. The New York Times states dat e take until 1947 for Haiti to finally pay off all de associated interest to de National City Bank of New York (now Citibank). Insyd 2016, de Parliament of France repealed de 1825 ordinance of Charles X, though no reparations have been offered by France. These debts have been denounced by some historians den activists as responsible for Haiti ein poverty today den a case of odious debt.

 History 

 Saint-Domingue colony 
Saint-Domingue, now Haiti, be de most profitable den productive European colony insyd de world going into de 1800s. France acquired much of ein wealth by using slaves, plus de slave population of Saint-Domingue alone accounting for forty percent of de entire Atlantic slave trade by de 1780s. Between de years of 1697 den 1804, French colonists brought 800,000 West African slaves to what be then known as Saint-Domingue to work on de vast plantations. De Saint-Domingue population dey reach 520,000 insyd 1790, den of those 425,000 be slaves. De mortality rate among slaves be high, plus de French often working slaves to death den transporting more to de colony instead of providing necessities as e be cheaper. At de time, goods from Haiti comprised thirty percent of French colonial trade while its sugar represented forty percent of de Atlantic market. By de 1770s, more than sixty percent of de coffee consumed insyd Europe come from de French West Indies, primarily from Saint-Domingue.

 Independent Haiti den de rejection of de international community 
Haiti ein legacy of debt begin shortly after a widespread slave revolt against de French, plus Haitians gaining their independence from France insyd 1804, followed by de 1804 massacre of much of de remaining European population of Haiti. Jean-Jacques Dessalines, Governor-General of Haiti, ordered de execution of remaining whites; insyd response, Thomas Jefferson, United States President, feared a slave revolt would spread to de United States, ceased de aid dat be initiated by ein predecessor John Adams den sought de international isolation of Haiti.

De news of de New Haitian State be thus received plus great fear den rejection by de countries den colonial powers of de region, since all of these countries were slaveholding nations den were nervous dat their slaves might follow de Haitian example. De Haitian diplomat den politician, Jacques Nicolas Léger writes dat even Simón Bolívar ignored Haiti when he called de Congress of Panama for fear of offending de United States.

After de declaration of independence, no state was willing to trade plus Haiti, which led Haiti ein first president Alexandre Pétion to suggest paying an indemnification to France, solely for de value of lost real estate, insyd order to see de de facto embargo lifted. Nevertheless, de French calculation of de indemnification (made insyd 1825 den confirmed insyd 1826) be based on articles 44 den 48 of de Code Noir, which established dat de enslaved labourers on an estate insyd de preceding 30 years constituted 30–60 percent of de property value.

Haiti had hoped dat de United Kingdom would support their recognition due to Britain ein strained relationship plus France, even providing British merchants lower import duties, though during de Congress of Vienna insyd 1815 Britain agreed not to prevent France ein actions by "whatever means possible, include dat of arms, to recover Saint-Domingue den to subdue de inhabitants of dat colony". Insyd 1823, Britain recognized de independence of Colombia, Mexico den oda nations insyd de Americas while refusing to recognize Haiti, leading to de Haitian government abolishing de lower import duties granted to British merchants insyd 1825. De United States likewise could not be counted on as a potential ally. Despite their anti-colonial assertion insyd de Monroe Doctrine of 1823, de American government refused to recognize Haiti, largely due to opposition by Southern slaveowners. De first American ambassador to Haiti – plus e recognition of Haiti ein independence – only came insyd 1862, a year after de Southern politicians who had blocked such a move had left Congress after declaring secession.

 Ordinance of Charles X 
As a show of force, captain Ange René Armand, baron de Mackau, insyd de ship La Circe, along plus two men-of-war, arrived at Port-au-Prince on 3 July 1825. Soon after, more warships led by admirals Pierre Roch Jurien de La Gravière and Grivel arrived at Haiti. A total of fourteen French warships equipped plus 528 cannons dey present demands dat Haiti compensate France for ein loss of slaves den de 1804 Haiti massacre.

Na de following ordinance of Charles X, King of France (1824–1830), be presented:

"Charles, by the grace of God, King of France and Navarre.

"To everyone here present, Greetings.

"Having seen articles 14 and 73 of the Charter

"Wishing to attend to the interest of French Commerce, to the misfortunes of the former colonists of Saint-Domingue and to the precarious condition of the present inhabitants of the island;

"We have ordered and order the following:

"Art. I. The ports of the French part of Saint-Domingue shall be open to the commerce of all nations.

"The duties levied in these ports either on ships or merchandise at the times of their entry or departure shall be equal and uniform for all nations except for the French flag, on behalf of which these duties are to be reduced to half the amount.

"Art. II. The present inhabitants of the French part of Saint-Domingue shall pay at the Caisse des Dépots et Consignations of France, in five annual instalments, the first one due on 31 December 1825, the sum of one hundred and fifty millions of francs, in order to compensate the former colonists who may claim an indemnity.

"Art. III. Under these conditions we grant, by the present Ordinance, to the present inhabitants of the French part of Saint-Domingue the full independence of their Government.

"And the present Ordinance shall be sealed with the great seal.

"Done at Paris in the Palace of Tuileries, this 17 April A. D. 1825, and the first of our reign.

"Charles.

"By the King: The Peer of France, Minister-Secretary of State for the Navy and the colonies.

"Comte de Chabrol."

De Haitians want de French to recognize de Spanish part of de island as part of Haitian territory. However, de French flatly ignored dis request. France had returned de jure de Spanish part of de island to Spain insyd de Treaty of Paris of 1814, which annulled de Treaty of Basel of 1795. Therefore France had no claim to de formerly Spanish part of Hispaniola which e can renounce insyd favor of Haiti.

Under Charles X ein ordinance, France dey demand an indemnity payment of 150 million francs insyd exchange for recognizing Haiti ein independence. Insyd addition to de payment, Charles ordered dat Haiti provide a fifty percent discount on French import duties, making payment to France more difficult. On 11 July 1825, de senate of Haiti signed de agreement to pay France.

 Territorial discussions 

De final discussions between France den Haiti regarding de signing of de Ordinance took place between de months of April den July 1825. By those dates, de Haitians had already been occupying Santo Domingo militarily for 3 years den 1 month.

During de discussions, de Haitians demanded from France dat de Spanish part of de island be recognized by France as de territory of Haiti insyd de aforementioned Ordinance. De French dey reject dis Haitian demand as inadmissible, ill-founded den lacking legal basis; France, they argue, had returned de Spanish part of de island to Spain insyd de Treaty of Paris of 1814, which annulled de Treaty of Basel of 1795. Therefore, dis territory be not theirs to dispose of, therefore, de Haitians dey occupy Spanish territory, not French.

Furthermore, de French be not going to reward Haiti by giving de Haitians a territory dat did not belong to France, when de Haitians made France lose ein most profitable colony, Saint-Domingue, insyd de first place. De French-Spanish relations which had been tense during de Trienio Liberal (1820–1823) had markedly improve following de imposition by force of an absolutist regime under Ferdinand VII which was Bourbon, Legitimist den Absolutist, very much like Charles X. Whatever de political expediency might have been (den there seemed to be none), Charles X was not of a disposition to reward a revolutionary Republic at de expense of a regime he viewed very much as kindred.

De Haitians alleged dat they were militarily occupy de territory of an independent state, de Republic of Spanish Haiti, free of any power, den dat ein president den founder José Núñez de Cáceres had recognized de Haitian occupation. De French reject dis claim of de Haitians, since de Republic of Spanish Haiti be just an attempt at a state that existed only for two months den a few days, den dat never receive official diplomatic recognition, neither of ein metropolis, nor of any oda country besides Haiti.

Furthermore, France den oda major powers had not yet (as of 1822) recognize Haiti as an independent nation, therefore, de French argue, de colony of one country could not recognize de sovereignty of de colony of another.

At de same time, de Haitians want France to force de Dominicans to pay de Haitian Independence Debt, den to sana collect local taxes from them, so dat they would contribute to de payment of dis debt. De French rejected this claim by the Haitians. France did not have to collect compensation from the inhabitants of de Spanish part since they had not created any loss for France dat had to be compensated. Furthermore, de French never create slave plantations on de Spanish part of de island when e be under French control.

 Indemnity payment 

De payments be designed by France to be so large dat e be effectively create a "double debt"; France would receive a direct annual payment den Haiti would pay French bankers interest on de loans required to meet France ein annual demands. France view Haiti ein debt as de "principal interest insyd Haiti, de question dat dominated everything else for us", according to a French minister. Much of de debt would be paid directly to de French state-owned Caisse des dépôts et consignations (CDC). France order Haiti to pay de 150 million francs over a period of five years, plus de first annual payment of 30 million francs being six times larger than Haiti ein yearly revenue. Haiti be oblige to take out a loan from de French bank Ternaux Gandolphe et Cie to make de payment. Ternaux Gandolphe et Cie insyd turn organized a bond auction to raise de sum. A consortium led by Jacques Laffitte agree to pay 800 francs for each of de 30,000 thousand-franc bonds to de CDC. Of de 24 million dat de Laffitte consortium paid to de CDC, 20 million had itself been borrowed at 3 percent interest from de CDC. Insyd 1826, Haiti shipped de contents of ein treasury to France insyd bags to make up de remaining 6 million francs.

Haiti continue to take out loans from France den de United States insyd oda to fulfill payments. Such large payments become impossible for Haiti den defaults occur immediately, plus Haiti ein late payments often dey raise tensions plus France. Ternaux Gandolphe et Cie seized assets of de Haitian government for failing to pay on ein loan, though de Tribunal de la Seine overturned these actions on 2 May 1828. On 12 February 1838, France agree to reduce de debt to 90 million francs to be paid over a period of 30 years to compensate former plantation owners who dey loose ein property den slaves; de 2004 equivalent of US$21 billion.Sommers, Jeffrey. Race, Reality, and Realpolitik: U.S.-Haiti Relations in the Lead Up to the 1915 Occupation. 2015. . p. 124. President Boyer, who agree to make de payments to prevent an invasion, be forced from Haiti insyd1843 by citizens who demanded lower taxes den more rights.

By de late 1800s, eighty percent of Haiti ein wealth was being used to pay foreign debt; France be de highest collector, followed by de German Empire den de United States. Henri Durrieu, head of de French bank Crédit Industriel et Commercial (CIC), be inspired to increase revenue for de bank by following de example of state-run banks acquiring capital from oda distant French colonies such as Martinique den Senegal. Insyd 1874 den 1875 Haiti took out two large loans from CIC, greatly increase de nation ein debt. French banks charged Haiti 40% of de capital insyd commissions den fees. Thomas Piketty described de loans as an early example of "neocolonialism through debt".

From 1880 to 1881, Haiti grant a currency issuance concession to create de National Bank of Haiti (BNH), headquartered insyd Paris by CIC which be simultaneously funding de construction of de Eiffel Tower. BNH be described as an entity of "pure extraction" by Paris School of Economics economic historian Éric Monnet. On de board of de BNH was Édouard Delessert, de great-grandson of French slave trader den owner Jean-Joseph de Laborde who dey establish ein when France control Haiti. Haitian Charles Laforestrie, who mainly lived insyd France den successfully pushed for Haiti to accept de 1875 loan plus de CIC, later retired from ein positions insyd Haiti amid corruption allegations, joining de BNH board insyd Paris after its founding. CIC took $136 million in 2022 US dollars from Haiti and distributed those funds among shareholders, who made 15% annual returns on average, not returning any of de earnings to Haiti. These funds distributed among shareholders ultimately deprived Haiti of at least $1.7 billion dat could have been put towards infrastructural development. Under de French-controlled BNH, Haitian funds be overseen by France den all transactions generated commissions, plus CIC shareholders profits often being larger than de entire budget for Haiti ein public works. De French government acknowledged de payment of 90 million francs insyd 1888 den over a period of about seventy years, Haiti paid 112 million francs to France, about $560 million insyd 2022.

 United States occupation of Haiti 
Insyd 1903, Haitian authorities begin to accuse de BNH of fraud den by 1908, Haitian Minister of Finance Frédéric Marcelin pushed for de BNH to work on de behalf of Haitians, though French officials begin to devise plans to reorganize ein financial interests. French envoy to Haiti Pierre Carteron write following Marcelin ein objections dat "It is of de highest importance dat we study how to set up a new French credit establishment insyd Port-au-Prince ... Without any close link to de Haitian government." Businesses from de United States had pursue de control of Haiti for years den from 1910 to 1911, de United States Department of State backed a consortium of American investors – headed by de National City Bank of New York – to acquire control of de National Bank of Haiti to create de Bank of de Republic of Haiti (BNRH), plus de new bank often holding payments from de Haitian government, leading to unrest.

France would still keep a stake insyd de BNRH, though CIC be excluded. Following de overthrow of Haitian president Michel Oreste insyd 1914, de National City Bank den de BNRH demand de United States Marines to take custody of Haiti ein gold reserve of about US$500,000 – equivalent to $13,526,578 insyd 2021 – insyd December 1914; de gold be transported aboard USS Machias in wooden boxes and place into the National City Bank's New York City vault days later. De overthrow of Haiti ein president Vilbrun Guillaume Sam den subsequent unrest result insyd President of de United States Woodrow Wilson dey order de invasion of Haiti to protect American business interests on 28 July 1915.Weinstein, Segal 1984, p. 28. Six weeks later, de United States seized control of Haiti ein customs houses, administrative institutions, banks den de national treasury, plus de United States using a total of forty percent of Haiti ein national income to repay debts to American den French banks for de next nineteen years until 1934.Weinstein, Segal 1984, p. 29. Insyd 1922, BNRH be completely acquire by National City Bank, ein headquarters was moved to New York City and Haiti's debt to France was moved to be paid to American investors. Under U.S. government control, a total of forty percent of Haiti's national income was designated to repay debts to American den French banks. Haiti would pay ein final indemnity remittance to National City Bank insyd 1947, plus de United Nations dey report dat at dat time, Haitians be "often close to de starvation level".

 Aftermath 

De New York Times reported de payments cost Haiti much of ein development potential, removing about $21 to $115 billion of growth from Haiti (about one to eight times de nation ein total economy) over two centuries, according to calculations conducted by fifteen prominent economists. Haiti could potentially have experienced a level of development on par plus neighboring Caribbean island nations dat gained independence insyd de early 19th century, such as de Dominican Republic den Jamaica.

De history of Haiti ein indemnity be not taught as part of education insyd France. Aristocratic French families have largely forgotten dat ein families benefited from de debt payments of Haiti. President of France François Hollande would eventually describe de money paid by Haiti to France as "de ransom of independence" den insyd 2016, de Parliament of France repealed de 1825 ordinance insyd a symbolic gesture.

 Reparation requests 

 Aristide government 
On 7 April 2003, President of Haiti Jean-Bertrand Aristide demanded dat France pay Haiti over 21 billion U.S. dollars, what he say be de equivalent insyd today ein money of de 90 million gold francs Haiti dey force to pay Paris after winning ein freedom from France. French den Haitian officials later dey claim to The New York Times dat Aristide ein calls for reparations led to French den Haitian officials collaborating plus de United States on removing Aristide because France feared dat discussions of reparations will set a precedent for oda former colonies, such as Algeria.

Insyd February 2004, a coup d'état occurred against President Aristide. De United Nations Security Council, of which France be a permanent member, rejected a 26 February 2004, appeal from de Caribbean Community (CARICOM) for international peacekeeping forces to be sent into ein member state Haiti. However, de Security Council voted unanimously to send troops into Haiti three days later, just hours after Aristide ein controversial resignation. De provisional prime minister Gérard Latortue who assumed office after de coup would later rescind de reparations demand, calling it "ridiculous" den "illegal".

Myrtha Desulme, chairperson of de Haiti-Jamaica Exchange Committee, told IPS, "I believe dat [de call for reparations] could have something to do plus it, because they [France] be definitely not happy about it, den make some very hostile comments ... I believe that he did have grounds for that demand, because that is what started the downfall of Haiti."

 2010 earthquake 

Following de 2010 Haiti earthquake, de French foreign ministry made a formal request to de Paris Club on 17 January 2010 to completely cancel Haiti's external debt. A number of commentators, for example The New York Times''' Matt Apuzzo, Selam Gebrekidan, Constant Méheut, and Catherine Porter, analyze how Haiti's current troubles stem from its colonial past, drawing references from the early 19th-century indemnity demand and how it had severely depleted de Haitian government ein treasury den economic capabilities.

 Gallery 
 Copies of de ordinance 

 Oda images 

 References 

 External links 
 France Urged to Pay $40 Billion to Haiti in Reparations for "Independence Debt" – video report by Democracy Now!''

Category:Economic history of Haiti
Category:France–Haiti relations
Category:Reparations for slavery
Category:Third World debt cancellation activism
Category:Aftermath of de Napoleonic Wars