1942: Haiti

Economic cooperation between the United States and Haiti was very close in the first year of the war, in which Haiti is a cobelligerent with the United States. A memorandum, dated April 6, outlined a number of arrangements agreed on by the two countries for strengthening the military, naval and economic position of that island. Active assistance will be given in developing and manning Haiti's defenses, including aid in building a marine railway at Port-au-Prince. Under the inter-American program of 'defense sanitation,' United States experts will be sent to Haiti to improve health and sanitation. Credits will be advanced by the Export-Import Bank for increasing sisal production and for strengthening the exchange relationship. The United States will purchase, through the Commodity Credit Corporation, the carry-over from last year's cotton crop, all the surplus of the 1942 crop, and, subject to an agreed price and within specified limitation of amount, the 1943 crop and all later cotton crops during the war. At the same time Haiti will undertake to restrict cotton production, and with help from the U. S. Department of Agriculture, will try to improve the quality and increase the staple length of its cotton.

Late in October a contract was signed with the United States for a large-scale development of crypto-stegia, a high quality and rapidly maturing source of rubber. Over 100,000 acres will be devoted to this purpose. The work will be carried out by SHADA (Haitian-American Agricultural Development Corporation), a cooperative venture launched in 1941, which is jointly owned by Haiti and the Export-Import Bank. The latter has allocated $5,000,000 for the project. SHADA, an increasingly important factor in Haiti's economic life, is also engaged in a 12,000-acre sisal development and in the development of the embroidery industry and native handicrafts.

Haitian foreign trade was flourishing in the first four months of the current fiscal year and had, in fact, increased 115 per cent over the corresponding period in 1940-41. Irregular shipping services, leading to a falling off in customs revenues, however, have reversed this trend and have created financial difficulties for the island republic, since import duties constitute 68 per cent of the total revenue; export duties, 11 per cent. The fiscal year ending Sept. 30 showed a budget deficit of 7,700,000 gourdes, which wiped out the Treasury surplus built up the previous year.

After thirteen years the joint boundary commission of the Dominican Republic and Haiti, on Dec. 16, reached an agreement on their frontier dispute.