Lease of Land, and Water at Guantánamo and Bahía Honda.

[Extract.]

The United States of America and the Republic of Cuba, being desirous to Conclude the conditions of the lease of areas of land and water for the establishment of naval and coaling stations in Guantánamo and Bahía Honda which the Republic of Cuba made to the United States by the agreement of February 16/23, 1903, * * * have agreed upon the following articles:

Article I. * * * Paragraph 2. All private lands and other real property within said area shall be acquired forthwith by the Republic of Cuba.

Paragraph 3. The United States of America agrees to furnish to the Republic of Cuba the sums necessary for the purchase of said private lands and properties and such sums shall be accepted by the Republic of Cuba as advance payment on account of rental due by virtue of said agreement.

Article III. The United States of America agrees that no person, partnership, or corporation shall be permitted to establish or maintain a commercial, industrial, or other enterprise within said areas.

Note.—The first pertinent correspondence after the signing of the foregoing lease is with the Navy Department, which on April 4, [Page 112] 1907, transmitted for the consideration of the Department of State a special report made on March 25, 1907, by the joint board, in which the importance of making certain changes in the boundaries of the naval station at Guantánamo is urged. (File No. 811.34537.) It was therein requested that diplomatic negotiations be entered into with Cuba in order to secure the assent of that Government to the proposed changes, and a chart was inclosed showing the then boundary and the one proposed. The request was renewed by the Navy Department on July 13, 1909.

The State Department on July 17, 1909 (instruction No. 265), instructed the American minister at Habana to open negotiations for obtaining the assent of the Government of Cuba to the changes of boundary desired.

In reply the minister stated (Sept. 16, 1909) that he had, August 28, 1909, addressed the foreign office on the subject, but anticipated opposition to the request, giving his reasons and asking for instructions.

On May 31, 1910, the joint board made a supplementary report recommending the relinquishment of the Bahía Honda leasehold in exchange for the enlargement of the boundaries at Guantánamo, whereupon, June 3, 1910, the Navy Department conveyed that recommendation to the Department of State.

In pursuance of the Navy Department’s recommendation the Secretary of State instructed the American minister as follows: