File No. 837.51/262
The Secretary of the Treasury (
McAdoo) to
the Secretary of State
Washington,
August 22, 1917.
Dear Mr. Secretary: The Cuban Government
has applied for a loan aggregating $15,000,000. I am advised by the
Cuban Minister and his colleagues of the special commission who
presented the matter to me a few days ago that they have sent to you
duplicates of the documents in support of their application which
they have lodged with me.
I am disposed to make this loan. I think we ought to do it, but
before taking action I should be very happy if you would submit to
me your views in this connection. As it is necessary to dispose of
it quickly, I beg that you will give it your prompt
consideration.
Cordially yours,
The Secretary of
State to the Secretary of the Treasury
(
McAdoo)
Washington,
August 23,
1917.
Dear Mr. Secretary: I am in receipt of
your letter of August 22 and note that you are disposed to loan
the Cuban Government $15,000,000, and you request my views in
this connection.
I approve the making of such a loan, provided data have been
received by our Government showing compliance with Article 2 of
our treaty with Cuba, relative to the creation by Cuba of public
debt; namely showing that the ordinary revenues of Cuba, after
defraying the current expenses of the Government, are adequate
to pay interest thereon and to make reasonable sinking-fund
provisions for the ultimate discharge thereof. No such data have
as yet been received by this Department.
I also feel that before granting the loan we should receive
definite assurances from Cuba that it will carry out the
arrangements now under discussion, contemplating the payment by
Cuba to the Cuba Railroad, of certain monthly sums, so that this
railroad may repair the damage caused by the recent revolution
and thus permit of the economic resources of Cuba being
adequately availed of in the present war.
This Department may also desire, in connection with the granting
of such a loan, to express to the President of Cuba its
confidence that he will assure a prompt and equitable settlement
of the so-called “Ports claim.”
I suggest a conference between our Departments before any final
decision is communicated to the Cuban Financial Commission.
Cordially yours,
