Without any diplomatic authorization, Babcock entered negotiations with Báez for annexation on August 7, with Cazneau serving as Babcock's interpreter. Babcock was informed of a large loan with unfavorable terms that the Dominican government had taken from financier Edward Herzberg Hartmont. With annexation, the United States would be burdened by this loan, meaning this debt could hinder ratification in the Senate. Babcock believed the loan was a backhanded way by the British to take over the Dominican Gulf, presuming the Dominican government failed to pay it back. Babcock and Báez began significant negotiations in the second week of August and asked Cazneau and Fabens for assistance. Babcock told Báez he was a representative of President Grant, and he was called to the Dominican Republic to discuss a union of the two republics. Báez said he believed annexation would stabilize the country that he believed had gone backward and asked Babcock to draw up a written plan for annexation.