1941: Haiti

President Stenio Vincent's second term ended on May 15, 1941. He was succeeded by Dr. Elie Lescot, Minister to Washington, a diplomat and administrator of long experience. The new president has pledged his administration to follow the Vincent policies. The foreign policy of the Republic has been strongly pro-United States. Cooperation in defense measures is indicated in the construction of an airfield near Port-au-Prince, to be used by commercial and military planes. Lend-lease aid for Haiti by the United States was agreed upon on Sept. 16; the agreement calls for the shipment of $1,100,000 worth of defense materials, repayable in Haitian export products. War was declared on the Axis Powers in December, following the formal entry of the United States into the Second World War.

The loss of European markets for coffee, cotton, and sugar had so adversely affected Haiti's finances early in the year that, in March, the Republic found it necessary to reduce its external debt service by one-third of the contractual rate. The rise in the price of Haitian coffee from six to nine cents a pound so quickly improved the nation's trade position, however, that full service on its outstanding dollar bonds was resumed on Oct. 1, and overdue interest was immediately repaid. An agreement with the United States, announced on May 5, abolished the offices of Fiscal and Deputy Fiscal Representative and provided for the control and operation of the budget and collection of customs and internal revenues by the National Bank of the Republic, thus ending North American control of Haitian finances. At the same time, provision was made for the protection of the holders of Haitian 1922 bonds.

The Republic's fiscal position was stronger at the end of July than it had been the year previous. Benefits from the Inter-American Coffee Agreement and a 16 per cent reduction in budgeted expenditures are the chief explanations. The sugar outlook has improved, too, since the British Government reentered the Caribbean sugar market. Reports that Great Britain has contracted for the last harvest of about 30,000 tons remain unconfirmed. Bananas made the best showing of all export products in 1941. On behalf of the Standard Fruit Company, a North American concern which markets Haiti's banana crop, Export-Import Bank credits amounting to $500,000 have been applied to the purchase of construction materials and equipment. A new long-term agreement with the United States was announced in May, providing for extensive rubber planting, and an additional $500,000 has been made available, under the J. G. White contract, for irrigation projects and improved transportation facilities to areas suitable for rubber growing and for other tropical products, such as spices, drug and fiber plants and oil crops. This is the only loan of the Export-Import Bank aimed at increased Latin American development of products complementary to United States economy. Total credits to Haiti, amounting to $6,330,000, have been made available to the end of 1946.

The third Inter-American Conference of the Carribbean met at Port-au-Prince in April. Representatives from twelve nations, and from Puerto Rico, attended. A Mexican proposal for an Inter-American Union of the Caribbean, opposed by the United States, was referred back to the several governments.