File No. 837.51/266
The Secretary of State to the Minister in Cuba ( Gonzales)
Your September 1, 11 a.m. You may inform President Menocal that the theory upon which a loan from this Government to the Government of Cuba may be made at the present time is to permit Cuba to cooperate more effectively in the prosecution of the war against the German Empire; that such cooperation will unquestionably be as important along economic as along strictly military lines, and that therefore in making a loan this Government earnestly desires to see that such economic cooperation is adequately provided [Page 307] for. This Government is reliably informed that the next sugar crop upon which this Government and other nations at war with Germany so much depend can not be fully availed of unless transportation facilities which were greatly impaired during the recent revolution are improved. It is thus this Government’s view that provision should be made out of any loan from this Government to Cuba, or, if the Cuban Government prefers, out of bonds of the recently authorized issue which may be available, to assure such railroad reconstruction as will permit of Cuba’s economic resources being rendered available. Any such measures, if to be effective, must be taken very promptly on account of the imminence of the next sugar crop.
It is not necessary for present purposes that payment should be made to any railroad company in such a way as to seem to establish general liability for revolutionary damages; on the contrary, in the opinion of this Department such payments would have the character of an extraordinary war measure; and, so far as the beneficiary is concerned, would be an act of grace.
The Department has not expressed itself in respect of the precise amount which should properly be paid to any railroad company or companies of Cuba to accomplish the result above referred to.
You will also point out that the attitude of this Government, as above expressed, does not result from any special representations made by the Cuba Railroad Company or from any special solicitude for that railroad company as such. The Department has, however, been impressed by many reports which it has received from independent sources relative to the great importance, as a war measure, of prompt assistance being given by the Cuban Government to permit of rehabilitating the Cuba Railroad by repairing the damage caused by the recent revolution and by carrying out urgent improvements which had been projected but performance of which was rendered impossible by causes resulting from the recent revolution.
As Whigham1 will arrive in Habana September 11 for purpose of discussing this matter with President on behalf of railroad company, you are directed to present Department’s views to President before Whigham’s arrival.
Department has given careful consideration to contents your No. 484 of August 6 and to your recommendations contained therein, and relies upon your discretion and knowledge of the situation to obtain from President some reliable assurance either to you or to the railroad company that Government of Cuba will take immediate and adequate steps looking toward rehabilitation of Cuba Railroad. Cable results your conference at earliest opportunity.
- President of the Cuba Railroad.↩