File No. 837.51/248

The Minister in Cuba ( Gonzales ) to the Secretary of State

[Extracts]
No. 470

Sir: Referring to the Department’s cabled instruction of June 18, 1917, I have the honor to transmit herewith a translation of President Menocal’s decree1 providing for a 30,000,000-dollar loan and the taxation measure to furnish revenue for the interest and amortization of the same, together with the Gaceta Oficial containing the decree.

This decree was issued after the President had failed to get action by Congress, and I interpreted it as giving notice to Congress that if it refused to support the administration plans, the President would act independently. Such course would be the last resort and he wishes action by Congress, which is, however, bent upon driving bargains before agreeing to any administration measure. …

After the President issued his decree the opposition in Congress indicated a disposition to pass the measure in the regular way. No attempt therefore has been made to put the decree into effect, as, in view of its legality being questioned, the President greatly prefers congressional action.

The administration’s majority in the House is exceedingly narrow, and as the tactics of the Liberals is to break quorum, it requires the attendance of practically every Conservative, and a few of these are disaffected. A deadlock is now in practical effect, with adjournment of Congress set for July 13.

I asked the President on Saturday what he would do if, in this time of war, the Congress adjourned without acting on war measures or the matter of the Ports Company settlement. He said that it was a serious situation, but that he had greater powers when Congress was not sitting and might be forced to assume the responsibility of decided, if unusual action. …

I have [etc.]

William E. Gonzales
  1. Not printed.