File No. 837.51/301
The Secretary of State to the Minister in Cuba ( Gonzales)
On September 15 last, when loan $30,000,000 to Cuba was under consideration, Department studied with great care data sent here by Cuban Government relating to Cuban law of July 31, 1917,3 and financial condition of that country, and arrived at a conclusion which it transmitted to the Cuban Minister in a note of September 154 as follows:
As the study of this evidence, which has been transmitted to this Department, would appear to indicate the ability of the Government of Cuba to meet the interest on the proposed bond issue from its ordinary revenues, as provided for by the treaty between Cuba and the United States of 1903, provided the current expenditures of the Government of Cuba are not increased [on account of Cuba’s entry into the war] beyond the amount stipulated in the budget for the year 1917–18, I have the honor to inform you that the Government of the United States sees no objection to the bond issue being made as desired.
Department desires to be informed as to whether the budget 1917–18 has been increased; if so, how much, and in respect to what items. Department also desires to be informed whether the enclosure in your mail despatch 581, February 18, 1918,5 gives the latest data on this subject. Telegraph reply in full. On account of proviso in above quotation it may be necessary for Department to make a reexamination of data submitted by Cuba last autumn in the light of increased expenses of Cuba on account of her entry into the war.