File No. 837.51/301
The Acting Secretary of State to the Chargé in Cuba ( Scholle)
Department’s telegram April 5 regarding Cuban loan. After conference with Mr. Gonzales, who has explained the operation of the Cuban law of July 31, 1917, Department would like to have definite and specific information as to amount being derived from the tax imposed by this law, say at the expiration of six months, that is January 31, 1918. Department would also like to know definitely whether the income derived from taxes under this law may be diverted by the Cuban Government to other purposes than providing for the payment of the interest and the retirement of the bonds authorized by the law. If Government is authorized to divert any of such income, to what extent is this diversion authorized and for what purposes, and also in that event, what is the guarantee for the payment and amortization of the bonds. Department desires the foregoing information in addition to that requested in its telegram of April 9. Department is very anxious to have this data and the information asked for in its telegram of April 9 immediately, and you are instructed to cable the information at once as you receive it. Please mail Department immediately a copy of the Cuban law of July 31, 1917 with translation, if obtainable.