File No. 437.00/27.

The American Minister to the Secretary of State.

[Extract]
No. 104.]

Sir: Referring to previous correspondence [etc.] I have the honor to enclose herewith copy and translation of a long personal note on the subject, which I received yesterday from Sr. Sanguily. I also enclose copy of my reply of today’s date. * * *

In case the Department desires me to comply with Sr. Sanguily’s request for cooperation, I venture to urge that I be given specific instructions as to the character and extent of the action to be taken by me, and particularly as to how far I should go in advising this [Page 278] Government in regard to the essential questions now being considered: whether or not it shall accede to the demand of the three powers that the claims be submitted to arbitration.

I may add that the representatives of the three interested powers are insistently pressing for an early decision and that their notes on the subject are couched in peremptory and impatient terms.

I have [etc.]

A. M. Beaupré.
[Inclosure 1.—Translation.—Extract.]

Personal letter from the Cuban Secretary of State to the American Minister.

My dear Mr. Minister: Only because reluctant to detain you I did not draw your attention this morning to a matter of great importance to this country; but now I have decided to consult you in the hope that, if there is no objection, you will assist me either with your valued counsel or in any other way, for I am confident that in any event your cooperation will be very effective, not to say decisive.

You will no doubt have heard through the noisy press of Habana * * * about the commotion among men of influence and nearly the entire Congress, brought about by the-well-known matter of the claims of France, England and Germany against Cuba on behalf of subjects of those nations for damages which they allege to have suffered during the war of 1895–98. As far back as 1903 the representatives of these nations began steps to procure from Cuba money indemnities on the strength of those claims, which implied that in their judgment Cuba was under obligation to pay them. Various notes upon this point were exchanged between the respective representatives and the Department of State in which reasons were adduced on both sides. The controversy remained in suspense throughout the period of the second intervention of the United States, but it was renewed in 1910, and since then as before we have, naturally, invariably maintained both orally and in writing the illegality and impropriety of the demands.

In this connection it is to be noted that now, as from the beginning, the situation is an anomalous one in that the aliens who claim to have suffered damages did not apply to the Cuban authorities to enforce their supposed rights, but from the beginning leaned upon their respective Governments and, disregarding such means and recourses as might be open to them through our laws and courts, have intrenched themselves in the diplomacy of powerful nations, while Cubans who, like those aliens, suffered damages in the war have not been indemnified and, even if they had filed claims therefor, would lack the enormous advantage which those aliens have procured through their appeal to diplomacy.

Prior to the “August Revolution” (1906) the official representatives of the three powers acted—although in mutual accord, as was natural in view of their identity of purpose—severally; but from 1910 on they have been acting jointly. On April 19, 1910, the diplomatic representatives of Germany, England and France came in a body to the Department, the French representative acting as spokesman. He told me that they had already waited too long for the decision of the Cuban Government in respect of the claims filed as far back as 1903, and that if those claims should not receive proper attention they would be compelled to follow instructions which the three had received of identical tenor, which would surely result greatly to the prejudice of the Republic. Wherefore, confident that they would be heard and heeded, they had agreed to suspend the execution of those instructions, principally “out of personal consideration for the Secretary of State”, because they expected that through him the matter would be settled without great delay and in conformity with what they considered to be justice, that is (I suppose) in conformity with the demands of claimants. The representative of Germany added emphatically that the powers which the three ministers represented would no longer tolerate Cuban opposition to their demands with “un fin de non recevoir”.

[Page 279]

As the situation had become clouded and aggravated for my country, and as I continued, like my predecessors in this Department, to regard the claims as unfounded and illegal, I endeavored to protract the matter in spite of their more or less veiled threats.

Fortunately, in November, 1910, the President of the Republic honored me, together with General Monteagudo, with a commission to pay his respects to the President of the United States upon his arrival at Guantánamo Bay. And here, my dear Mr. Minister, I must be perfectly frank and explicit with you, for from that visit has been derived everything that happened later in connection with the foreign claims, and the little that then transpired is in my judgment the explanation and also, as I contend, the justification of my attitude and of the course which from that time on the negotiations took.

It seemed to me both expedient and necessary to inform the President of the United States that there were European claims pending against Cuba, and I even believed it to be my duty to warn him as discreetly as I knew how that the new phase in which these claims were brought to our consideration was disquieting for Cuba on account of certain threats which the three ministers had conveyed, as above stated.

I gathered the impression that the President of the United States thought that in this matter right was not on the side of the claimants. The President told me that he would take up the matter with Secretary Knox, and I even think that I understood him to say that the result of his conference with. Secretary Knox would be made known to me through the Minister of the United States at Habana.

After some time had elapsed without my receiving any word from Washington, I orally requested Mr. Jackson to ask that I be made acquainted with the all-important views of the American Government. Mr. Jackson promised me to convey my request by the means at his disposal; but time flew on and I was at a loss to find an effective and decorous means of protracting the business. To this end I had a few interviews with the European ministers, at times jointly and at other times individually; I offered to commit the examination of the claims, from the point of view discussed by both parties, to some competent jurist; and I went so far as to indicate to them the probability that pursuant of the First Transient Provision of our Constitution1 I should recommend to the President of the Republic that he place the matter in the hands of the Congress for examination and final action.

But, as the summer drew on and the foreign ministers began to leave the country, it seemed to me profitable and prudent to consult certain influential persons competent to deal with the question by reason of their knowledge and experience in public life; and while conferring with them on the 9th of June last year I was told that the Minister of the United States had arrived and was awaiting me in the next room. I interrupted the interview immediately, begging the gentlemen present to wait for me a little while, because I wished to receive the minister at once. The minister had in his hand and showed me a paper containing the substance of a telegram which he had just received from his Government.2 In that telegram he was informed that the Ambassadors of France, England and Germany, having complained to the American Government of the tardiness of Cuba in respect of the claims which had on behalf of their subjects been filed since 1903, the Secretary of State, or perhaps the President himself (I do not now recall the exact terms of the instruction which Mr. Jackson allowed me to read), had begged them not to bring pressure to bear upon this Republic, in view of the possible effect upon Cuban finances; but at the same time he advised us to endeavor to settle the pending conflict by arbitration, not only for our own convenience but because that method was in harmony with the ideas and policy of the United States. I cannot after so many months vouch for the accuracy of my memory in respect of the ideas expressed in that instruction, which I read but once in the memorandum; for although I asked him to leave the memorandum with me Mr. Jackson [Page 280] declined (courteously, as always) to do so, on the ground that I had dealt with him thus far only orally and he could consequently go no further than to allow me to read his instructions; but he nevertheless authorized me to communicate them to the gentlemen in the next room.

I did so, and the general agreement was that we should not now hesitate to accept arbitration; and it is noteworthy that on July 3 the Legations of France, Germany and England should have presented to this Department a note verbale proposing “the institution of a tribunal of arbitration or a special international commission” to examine the claims of their subjects and pass upon their admissibility and amount.

In view of the foregoing—the impression which I gathered from the President of the United States that it was his belief that Cuba was not under obligation to answer for damages suffered by foreigners during the war of independence; the recommendation contained in Mr. Jackson’s memorandum; and the almost unanimous opinion expressed in consequence thereof by the gentlemen assembled in this Department on June 9, 1911—I became persuaded that if I resorted to arbitration no one could offer better guaranties for Cuba than the President of the United States himself. And accordingly, on the same day on which I received the note of the powers proposing the institution of a tribunal or commission, I sent cable instructions to our Minister at Washington to inquire whether President Taft would consent to act as arbitrator1; and the Minister replied July 6 that the President would consent if the claimant Governments should jointly with that of Cuba submit the question to his arbitrament.2 As I did not even suspect that the powers would refuse this solution, I addressed them a note on July 10 accepting in principle the proposition of arbitration, but requesting them at the same time to accept the idea of appointing as arbitrator the Honorable William H. Taft, President of the United States. Contrary to what I had anticipated, on August 9 they handed me a collective note stating that the Republic would be notified later of the proposals of the powers regarding the organization of the arbitration; and at the same time they told me orally that the Governments in interest, “by reason of the importance of the decision”, thought that “arbitration should be confided to a commission in which the powers were represented “and that therefore they “could not think of committing the question to a single arbitrator however great his high authority”.

To that note, as also to the oral statement, I replied on August 12 that as the powers had indicated that they would propose the organization of the arbitration when I in my note had reserved the determination of the points to be arbitrated, and as the powers had likewise rejected my other proposal to commit the matter to a single arbitrator, I regarded it as my duty to say that the Government of the Republic considered itself free from the obligation which they attributed to it and which might have been based upon its acceptance in principle of the proposal for arbitration. But as the French Chargé d’Affaires asked me to await, before making public this statement, the amplification which they would make in regard to this question, in order to please him I waited until I received some time later3 a memorandum in which the powers jointly submitted to the consideration of the Cuban Government detailed proposals for proceeding by arbitration to the settlement of the pending claims.

In the meantime I learned that the President of the United States declined the office of arbitrator which had been proffered him.4 I do not now exactly recall through what channel this information reached me, but I am sure that it was alleged that the reason for the declination was the fear of the President of the United States to arbitrate a case in which he might have to act in the dual capacity of judge and party, because among the claimants for damages suffered during the Cuban revolution some American citizens might appear. And here I wish to say that if I greatly regretted that the President of the United States should, in our then very serious situation, excuse himself, it caused me far greater surprise to learn that the reason invoked was the possibility that American citizens might, like the Europeans, bring claims against Cuba for damages suffered during the war of 1895, when it is clear and conclusive that, without reference to the cause of damages—as shown by the protocols of the Paris conferences5—the United States undertook and bound itself to [Page 281] answer for the claims of American citizens and to pay such as should be proved just and proper.

Following the receipt of the collective memorandum to which I have just referred, I had several conferences with capable and learned men both in my office and in the Senate; and as the number of the conferees was small and all of them did not concur in submitting the question to arbitration, I proposed to the President of the Republic that he should convene in the Palace a larger number, chosen from among the various committees of Congress and lawyers and politicians of repute. This conference, attended by over fifty men so chosen, took place on the 30th of last month, although unfortunately without any practical outcome whatever. * * * Notwithstanding the danger and delicacy of our situation opinion is divided; some think that we should resolutely embrace arbitration while others oppose this procedure. * * * On the one hand difficulties appear and dangers arise; on the other hand the First Transient Provision of the Constitution, if not debarring aliens from pressing their claims, prevents the Cuban Government from taking any attitude contrary to its precepts; for which reasons I would not even venture to advise the President of the Republic to take any action that, with the dissent of the people, might be productive of far-reaching liabilities.

In a situation which I can well say is embarrassing, I appeal to you, for I am sure that if at any time the United States can, in protection of justice, mediate between strong nations and a weak people which is its grateful and loyal friend, now is the time when it would be most appropriate and necessary. I believe that if the Platt Amendment and the treaty in which it was embodied give the United States the right to intervene in our country in certain circumstances, those instruments likewise particularly impose upon it the obligation to defend us when those who are stronger than us menace us for reasons that are opinionable and debatable. Will you permit me to remark that inasmuch as the moral authority of the United States in respect of Cuba—which is so great in the eyes of every country in the world—can be exercised in cases that heap humiliation on us, it should in just compensation be exercised above all when, as now, the occasion offers to do it to our benefit and for our guaranty?

I have [etc.]

Manuel Sanguily.
[Inclosure 2.]

The American Minister to the Cuban Secretary of State.

Dear Mr. Secretary: Your note of the 9th instant inspires me with the deepest respect for you personally and with a full appreciation of the difficulties and perplexities that you are meeting in the great work that you are doing for your country. I need only reiterate now what I have said to you orally on other occasions: that to the full extent of my ability and consistent with my official obligations and duties, it will give me the keenest pleasure to render you such assistance and service as I may.

In the matter of the foreign claims, however, I feel that I am not warranted in taking any action without the previous knowledge and consent of my Government. I am therefore hastening to communicate to my Government the contents of your note and will, immediately upon receipt of my instructions, inform you whether I can take such action as you desire.

I am confident that you will readily realize that my course in this matter as above indicated is prompted by no lack of willingness on my part to be of service to you, but rather by a desire to act in the only really efficacious manner, that is, with the full support of my Government.

Thanking you [etc.]

A. M. Beaupré.
  1. “Primera Disposición Transitoria,” as follows [translation]: The Republic of Cuba does not recognize any other debts or obligations than those legitimately contracted in favor of the Revolution by commanders of bodies of the liberating army subsequent to the 24th day of February, 1895, and prior to the 19th of September of the same year, on which date the Jimaguayú Constitution was promulgated; and the debts and obligations contracted afterward by the Revolutionary Government, either by itself or through its legitimate representatives in foreign countries. Congress shall examine said debts and obligations and decide upon the payment of those which are found legitimate. (Rodriguez. American Constitutions, vol. 2, p. 145.)
  2. For. Rel. 1911, pp. 126127.
  3. For. Rel. 1911, p. 127.
  4. For. Rel. 1911, p. 130.
  5. November 7, 1911.
  6. For. Rel. 1911, p. 129.
  7. The Treaty of Peace between the United States and Spain in 1898, Article VII. See Malloy’s Treaties, p. 1692.