File No. 837.51/272
The Secretary of State to the Minister in Cuba ( Gonzales )
Your September 11, 10 p.m. and September 14, 10 p.m. Department has to-day sent an official note to Cuban Legation stating that it sees no objection to bond issue of $30,000,000 and advising that Secretary of Treasury is prepared to proceed in the matter of the [Page 310] loan of $15,000,000. A note was also sent to the Legation acknowledging an aide-mémoire signed by the Minister stating that Government of Cuba would see to it that railway companies maintain their lines in a suitable condition for the handling of the next sugar crop, and expressing gratification at assurances made to you by President of Cuba, and concluding by saying that as the Secretary of the Treasury has stated that he can proceed with the loan, the Department expresses the wish that steps be taken at earliest opportunity to put into effect these assurances, and asking to be informed what arrangement has been made with Cuba Railroad Company.
The Department does not believe that the Treasury Department will see its way clear to lending Cuba more than $15,000,000, and therefore does not believe that it will be possible to carry out the suggestion contained in your September 14, 10 p.m.
As it would appear from all reports received that three million will be needed by the Cuba Railroad to put it in efficient running order, Department desires to have that amount kept in mind when program is discussed with President Menocal and awaits results of any further conferences with great interest.