File No. 837.51/315
The Minister in Cuba ( Gonzales) to the Secretary of State
Sir: In reply to the Department’s instruction No. 5732 dated June 25, 1918, and received the 13th instant. I have the honor to report that it is not proposed to lend to the United Railways of Habana any money out of the $15,000,000 borrowed by Cuba from the United States.
After President Menocal had made considerable loans or advances to the Cuba Railroad, and smaller amounts to other railroads that had suffered in the last revolution, Congress authorized the Government to make advances to railroads in distress, and for the benefit of the country, not exceeding $10,000,000. The available funds were the Treasury bonds remaining of the authorized $30,000,000 issue. The Cuba Company has received in cash and in bonds $3,000,000, and is asking for more. The United Railways of Habana asked for a loan of $5,000,000, and the President tells me that he has consented, after a thorough investigation into their needs, to lend them $1,000,000 in Cuban bonds.
I have [etc.]
- Not printed.↩