HAITI

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79R01099A002200010010-2
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: March 8, 2006
• Sequence Number: 10
• Content Type: MEMO

Approved For Release 2006/03/170 A79R01099A002200010010-2
1. Reference is made to your letter of 4 January 1974 to
Mr. John 0. Marsh, Jr. , Assistant Secretary of Defense for Legisla-
tive Affairs, requesting information about the Republic of Haiti, and
his reply of 21 January 1974.
2. While routine collection of investments, banking, and land
tenure matters in Haiti is not our primary responsibility, we would
like to provide you a brief, general idea on these subjects from
information available to us from various sources.
3. According to 1972 figures, the total foreign investment in
Haiti was US$45 mil o , with 28. 5 million of that amount coming
from U. S. investors. '1 rance and Canada also have investments in
Haiti in more than negligible amounts. No figures for 1973 are made
available yet, although it is known that the government attained a
more favorable fiscal position and foreign investment was increasing.
We would like to point out that, in general, economic statements and
data concerning Haiti are informal and based mainly upon estimates and
must therefore be treated with caution. (The Haitian Statistical Institute,
for example, can provide only partial data on most subjects. Foreign
trade statistics in Haiti are usually not true values, and budget figures
are arbitrarily made to balance. ) Assembly industries, construction,
and tourism pace the economy. The category called light manufactures,
including all assembly ancftransformation products, is the leading export
component. Haiti is the world's largest exporter of baseballs. Bauxite,
sugar, coffee, essential oils, sisal, copper, cacao and miscellaneous
products follow in the list of exports.
4. Concerning land tenure, at present it is one of basically
small holdings producing primarily for the domestic market and only
secondarily for the export market. As of 1972 agriculture was charac-
terized by the existence of a large number of small subsistence plots
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worked by traditional methods. It has been estimated that 90 percent
of the farms are smaller than fifteen acres; 8 percent are between
fifteen and sixty-five acres in size; and 2 percent are larger than
sixty-five acres. A few wealthy citizens own homes in the country, but
the land_jts.elf has belonged to the peasant since the early days of the
Republic. In sharp contrast to other Latin American countries, the
Republic of Haiti has not had a landed oligarchy.
5. "Kickbacks" on the part of foreign "operators" appear to be
a commQpractice in Haiti, generally involving Haitian officials. Five
percent seems frequently expected, but the amounts vary, of course,
depending on the services rendered, the number of people involved, and
the business volume. As you know, we are proscribed by law and
established policy from collecting and disseminating information relating
to the activities of U. S. citizens. The bulk of foreign "operators" in
Haiti are probably American.
6. With regard to banking, the official currency is the gourde,
although the U. S. dollar is also legal tender in Haiti. The official rate
of exchange is 5 gourdes to US $1. No black market exists l.n
it is known that Haitian banknotes have been quoted at a discount bye but
New York City banks since 1961. In late 1972 the banking system consisted
of three government banks and credit facilities and seven ivate anks.
The oldest and largest is the government-owned National Bank of the
mow'' Republic of Haiti (Banque Nationale de la Republique d'Haiti-BNRH).
The BNRH. is both a central bank and a commercial bank. In addition to
issuing money and acting as the state's fiscal agent, it also controls the
banking system, rediscounts commercial paper for the private banks,
and carries out all regular commercial functions plus some nonbanking
services, such as operating the Port au Prince wharf. The BNRH is
managed by a five-man board of directors appointed by the president of
the Republic; one of the five is named the bank's president and general
director. The current director is Mr. Antonio ANDRE. There is no
securities exchange system in Haiti that would permit domestic firms to
raise capital from local sources. A few companies issue bonds and
stocks but have them traded on the over-the-counter market in New York
City. About 35 insurance firms operate in Haiti, but only two or three
are Haitian-owned. Most persons,
~ particularly small farmers, do not
have access to institutionalized credit because tangible property is
usually required as collateral. Such persons obtain their credit needs
from moneylenders, middlemen, or exporters. , Repayment of such loans
need not be in cash but may be in kind. Interest is high, but in some
cases a social relationship exists between the lender and the borrower,
and little or no interest is charged.
7. We hope that you find the above of some value.
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