Dávila and the external debt History of Honduras (1900–1954)
william howard taft
during administration, miguel dávila tried update country, in addition struggling against opposition, president had difficult task of leading when external debt of honduras had reached us$120 million. according administration of president william howard taft, debt factor contributed political , social unsteadiness of country. because of this, dávila initiated efforts repay debt, of owed england.
negotiations organised between representatives of honduras , bankers of new york, directed jp morgan. @ end of 1909, agreement reached reduce debt , issue new bonds @ 5% interest. in exchange, bankers control railway of honduras, , government of united states take control of customs revenue, while still guaranteeing independence of honduran state.
in honduras, great opposition terms proposed bankers weakened government of dávila more. when tried carry out terms of agreement, seen hondurans violation of national sovereignty. reason, in rare show of independence, national congress of honduras refused proposals vote of thirty-three five. dávila continued pressing congress until approved.
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