File No. 837.00/1149
[Untitled]
Habana, February 27, 1917—5 p.m.
Following my instructions February 25 to Consul at Santiago to protect banks and other foreign interests calling on commander of naval forces in harbor if necessary, he cabled yesterday no illegal demands made on banks. Today Royal Bank of Canada cables British Minister here he had delivered Government funds in his possession to insurgents. Amount supposed to be three hundred and fifty thousand dollars. British Minister alleges money delivered under compulsion. He says that forced bond issue or war tax levy threatened.
Report to British Minister also said efforts being made obtain permission for renewing grinding in sugar mills but insurgents will permit renewal only on request from Government of the United States made through Consul.
[Page 369]As Cuban armed forces were warned by us against entering harbor I believe United States should land forces enough to give security against either violence or coercion by insurgents. Also believe peremptory order given to rebel leader by American commander supported by five hundred men that he do not permit destruction of foreign property in territory within jurisdiction would have immediate good effect.