File No. 837.156/250
When I presented the matter to the President he again expressed himself
as anxious to get a settlement, and several days afterwards the British
Minister also spoke to him on the same subject. Last Saturday, June 30,
the President said that he had sent for a number of Congressmen and
urged the importance of his being given authority to get a settlement
with the Ports Company; that he also sent to Mr. Truffin to come to
Habana and aid in getting action by Congress; that Mr. Truffin was, he
thought, personally interested in the passage; that it seemed to him
more probable that Congress would act favorably on this matter than on
any other important proposal on the administration’s program, but it was
impossible to predict whether action would be taken before the
adjournment on July 13.
I urged the necessity of an early settlement, and the President said that
if Congress refused to act he would have to consider some plan for
proceeding independently.
[Inclosure—Translation]
message of the president of the republic
To the Congress: An unavoidable duty
obliges me to recommend anew with all urgency to the honorable
Congress the settlement of the serious matter referring to ports
duties and improvements and claims of the bona
fide holders of bonds of the Cuban Ports Company.
In the message referring to the same matter, which I sent on January
21, 1916, to both houses of Congress, I explained the status of this
question and the convenience of deciding same, in view of the public
necessity and of the repeated representations made by the
Governments of the United States and Great Britain, regarding said
claims.
The company referred to having been illegally constituted, it was
nevertheless, recognized as legal by the Government of this Republic
which granted it the concession for the works of dredging and
improving the ports of the island, for the time and with the
conditions and extraordinary advantages of the law of February 20,
1911, and showed it every measure of favor and confidence.
Foreigners who, in good faith, and protected by those acts of the
Government of the Republic, and in view of its reiterated assurances
and of the reports of reputable entities, invested their savings or
their capital in those Cuban bonds, are claiming indemnity for the
loss they have suffered, and this, in my judgment, must be examined
with a view to equity, even if not with strictest justice, as my
Government has with solid and positive grounds constantly
maintained.
By my decree No. 522 issued on August 4, 1913, it was stated that
said company was not constituted in accordance with the laws of the
country, as required by the law of February 20, 1911, already cited,
and that it was not, nor could it continue to be the concessionaire
of the said works; and that statement is supported and confirmed by
repeated decisions of the Supreme Court against the company and in
favor of the State, in all the suits brought against the said
decree. There can be no doubt therefore, that the Government of the
Republic acted legally, with right and justice, in issuing the
Decree 522.
But the case of the bona fide holders of the
bonds that the said company managed to sell abroad, taking advantage
of the above-mentioned favorable circumstances and relying on the
integrity of the Cuban Government, is not morally decided by those
important judicial decisions, inasmuch as they rest on grounds of
equity, grace and high international comity which can not escape the
enlightened mind of the honorable Congress.
Founded on analogous considerations, a bill was approved by the
Senate some time ago, which is still pending before the House, as to
which I said in my message of January 21, 1916, and now repeat,
without intending, as I did not then, to anticipate opinions which
must constitutionally be reserved for the moment when the proposed
law is presented to me for approval, that it was without any doubt,
inspired by motives and reasons of justice on one hand, and of
equity and grace on the other hand, which are fundamental and must
not be lost sight of, it being my opinion that upon the ample basis
of the general lines of that bill, an efficient settlement could be
reached, which would foresee and satisfy the twofold necessity which
must be considered, that is, that of continuing the port
improvements which the law of 1911 desired should be assured, giving
definite application for the tax which it imposed for that purpose,
as well as that of indemnifying, in the proper time and manner, the
bona fide bondholders.
If it were always just and prudent to consider these necessities for
the reasons indicated, it is even more so now that it behooves us to
lay aside completely all differences and arguments or disputes with
the Governments of the United States and Great Britain in
circumstances such as those created by war with the Imperial German
Government, which strongly unite our three nations together in the
defense of the same ideals of liberty, of international justice and
of progress.
[Page 455]
On the other hand, the definite settlement of this vexatious matter,
which is used without reason against the credit of Cuba, would
contribute in no little part to the better and more expeditious
accomplishment of the important bond issue of thirty million dollars
which the Republic needs for effecting the high and unavoidable
objects which I had the honor to set out in the messages of April 18
and May 26 of this year.
I confidently expect that for the reasons expressed, the honorable
Congress will, before the present session closes, vest in me the
necessary authority in accordance with the proposed law referred to,
or in the terms that its prudence and wisdom may dictate, in order
that the important and urgent measures may be carried out.
Issued at the estate El
Chico, Marianáo, June 25, 1917
M. G. Menocal
