File No. 437.00/19.

The American Minister to the Secretary of State.

No. 1072.

Sir: I have the honor to acknowledge the receipt yesterday of you instruction No. 380, of the 10th instant, in regard to the so-called “insurrectionary claims,” which crossed my dispatch No. 1054 of the same date.

On calling on Sr. Sanguily, the Cuban secretary of state, this morning, I found that he had already seen President Taft’s letter to President Gómez, of August 3, and * * * had learned for the first time of the existence of claims of American citizens of the same nature as those of Europeans. * * *

During our conversation I mentioned your suggestion as to the establishment of a domestic claims commission, but I saw at once that he did not view it with favor. He was much disturbed at President Taf t’s decision not to act as arbitrator, and maintained that under the circumstances Cuba was in no way bound to submit the matter to arbitration at all, although he would await the proposals of the powers before giving a positive refusal. His position is that by the treaty of Paris and her own constitution certain obligations were imposed on Cuba, which obligations have been fulfilled, and that if the door was opened to the consideration of the claims in question there would be a revival of the Spanish debt claims and others which would overwhelm. Cuba if she should be compelled to recognize them. He maintains that Cuba has no liability in the matter at all, and that it would amount to giving away her whole case if she should consent to the formation of any commission to consider the claims as such. To him the only point which could be submitted to arbitration would be the justice of the claims as a whole. * * *

I have, etc.,

John B. Jackson.