B-143698, SEP. 16, 1960

B-143698: Sep 16, 1960

Additional Materials:

Contact:

Edda Emmanuelli Perez
(202) 512-2853
EmmanuelliPerezE@gao.gov

 

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

THE REFERRAL HERE WAS EFFECTED PURSUANT TO THE PROVISIONS OF 4 GAO 5050 WHICH REQUIRES THE SUBMISSION TO THE GENERAL ACCOUNTING OFFICE OF ADMINISTRATIVELY UNCOLLECTIBLE DEBTS. THE ORIGINAL INDEBTEDNESS IS EVIDENCED BY PROMISSORY NOTE NO. 1. NOTHING WAS PAID BY THE HAITIAN GOVERNMENT UNTIL. 000) WAS MADE ON MARCH 7. NO FURTHER PAYMENTS ON THIS INDEBTEDNESS HAVE BEEN MADE. THERE IS AT LEAST A POSSIBILITY THAT SOME SURPLUS REVENUE WILL BECOME AVAILABLE. ITS EXTENT IS NOT LIKELY TO BE KNOWN BEFORE APRIL 1960 AT THE EARLIEST. WE WILL BE GLAD TO FURNISH YOU WITH APPROPRIATE CERTIFICATES OF INDEBTEDNESS FOR TRANSMITTAL TO THE REPUBLIC OF HAITI IF YOU SO DESIRE.

B-143698, SEP. 16, 1960

TO THE SECRETARY OF STATE:

BY LETTER OF APRIL 25, 1960, COPY ENCLOSED, THE GENERAL SERVICES ADMINISTRATION REFERRED TO OUR OFFICE FOR COLLECTION A MATTER CONCERNING THE INDEBTEDNESS OF THE REPUBLIC OF HAITI TO THE UNITED STATES IN THE AMOUNT OF $115,894.94 INCLUDING PRINCIPAL AND INTEREST AS OF DECEMBER 31, 1959. THE INDEBTEDNESS AROSE IN CONJUNCTION WITH THE DISPOSAL OF SURPLUS PROPERTY BY THE FORMER WAR ASSETS ADMINISTRATION. THE REFERRAL HERE WAS EFFECTED PURSUANT TO THE PROVISIONS OF 4 GAO 5050 WHICH REQUIRES THE SUBMISSION TO THE GENERAL ACCOUNTING OFFICE OF ADMINISTRATIVELY UNCOLLECTIBLE DEBTS.

THE ORIGINAL INDEBTEDNESS IS EVIDENCED BY PROMISSORY NOTE NO. 1, DATED JANUARY 15, 1948, FOR $13,881.57 AND NOTE NO. 2, DATED JULY 15, 1948, FOR $136,843.37. BOTH NOTES PROVIDED FOR THE PAYMENT OF INTEREST AT THE RATE OF 3 1/2 PERCENT PER ANNUM; AND FOR PAYMENT IN FIVE INSTALLMENTS. EXCEPT FOR A CREDIT OF $224.33, NOTHING WAS PAID BY THE HAITIAN GOVERNMENT UNTIL, WHEN IN CONTEMPLATION OF A NEW AGREEMENT--- EXECUTED SEPTEMBER 5, 1956--- AN INITIAL PAYMENT OF 375,000 HAITIAN GOURDES ($75,000) WAS MADE ON MARCH 7, 1956. THIS AGREEMENT PROVIDED FOR LIQUIDATION OF THE INDEBTEDNESS BY THE ABOVE-REFERRED TO INITIAL PAYMENT, AND PAYMENTS IN GOURDES EQUIVALENT TO $12,000 PLUS INTEREST EACH SIX MONTHS BEGINNING JULY 1, 1956. THE INITIAL PAYMENT LIQUIDATED NOTE NO. 1 AND REDUCED THE PRINCIPAL OF NOTE NO. 2 TO $115,038.39 WITH INTEREST PAID THROUGH MARCH 6, 1956. ON JANUARY 22, 1957, THE GENERAL SERVICES ADMINISTRATION RECEIVED A CHECK IN THE EQUIVALENT AMOUNT OF $13,283.12 IN PAYMENT ON THE INDEBTEDNESS FOR THE FIRST SIX-MONTH PERIOD. NO FURTHER PAYMENTS ON THIS INDEBTEDNESS HAVE BEEN MADE.

AS EACH PAYMENT HAS BECOME DUE, THROUGH JANUARY 1, 1960, THE GENERAL SERVICES ADMINISTRATION HAS PREPARED A BILL THEREFOR WHICH YOUR DEPARTMENT HAS FORWARDED TO THE REPUBLIC OF HAITI. THE PAYMENT DUE ON JULY 1, 1960, HAS NOT BEEN BILLED.

FOREIGN SERVICE DESPATCH NO. 255, DATED JANUARY 27, 1960, FROM AMEMBASSY PORT-AU-PRINCE TO THE DEPARTMENT OF STATE, WASHINGTON, STATES THAT (1) THE REPUBLIC OF HAITI CONTINUES TO LIST "WAR ASSETS" AS AN ITEM OF ITS PUBLIC DEBTS; (2) NO PROVISION FOR THIS ACCOUNT HAS BEEN MADE IN THE CURRENT HAITIAN BUDGET; AND (3) IN VIEW OF THE FAVORABLY DEVELOPING COFFEE CROP, THERE IS AT LEAST A POSSIBILITY THAT SOME SURPLUS REVENUE WILL BECOME AVAILABLE, BUT ITS EXTENT IS NOT LIKELY TO BE KNOWN BEFORE APRIL 1960 AT THE EARLIEST. YOUR DEPARTMENT APPARENTLY HAS CONSISTENTLY ATTEMPTED TO EFFECT COLLECTION OF THIS DEBT.

WE REQUEST THAT A REPORT AS TO THE PRESENT PROSPECTS OF COLLECTING THIS INDEBTEDNESS BE FURNISHED THIS OFFICE AND THAT THIS OFFICE BE KEPT INFORMED AS TO FURTHER DEVELOPMENTS IN YOUR COLLECTION EFFORTS. WE WILL BE GLAD TO FURNISH YOU WITH APPROPRIATE CERTIFICATES OF INDEBTEDNESS FOR TRANSMITTAL TO THE REPUBLIC OF HAITI IF YOU SO DESIRE.