File No. 839.51/1604.

Chargé Johnson to the Secretary of State.


Referring to your telegram August 3, 7 p.m. Old budget continued in force by necessary decree, owing to failure of Congress, prior to adjournment, either to pass pending budget over Presidential amendments to certain items or to accept the amendments. Plan is, however, to operate by not availing of certain appropriations and by leaving unfilled certain offices with the result that total of items for which Government should become indebted will not exceed estimated income. This is plan under which same budget operated under Johnston, financial expert part of last fiscal year. Perdomo had promised to give publicity to list of items suppressed so that proposed plan of operation would have a measure of binding force on Government and shall now endeavor to obtain publication of such a list from Minister of Finance when appointed.