862.85/1188
The Chargé in Cuba (White) to the Secretary of State
[Received July 19.]
Sir: In reply to the Department’s cable instruction (No. 107) of July 9th, 4 P.M., in regard to the ex-German ships now in possession of the Cuban Government, I have the honor to inform you that I saw President Menocal this morning and he informed me that he had not authorized the Cuban Legation in Rio de Janeiro to make any statement in regard to the American Government’s attitude towards these ships. He stated that although he had not yet seen a copy of the Department’s letter to the Cuban Minister of March 9th, he was well aware of the views of the American Government regarding these ships. He stated, however, that the opinion of the Cuban Government was that they are entitled to these ships under the Versailles Treaty, and that the Cuban Government had declined to become a party to the clearing house for claims as Cuba had suffered practically no losses from Germany, and he could not see that Cuba would have anything to gain by adhering to the Wilson–Lloyd George agreement. The only Cuban ship lost in the war was the Chaparra, which was apparently sunk by a mine at the end of the war. The attitude of the Cuban Government in this case was that as the ship was not operating under the control, instructions, or direction of the Cuban Government, and was charging freight rates, etc. enough to compensate for war risks, it did not have any claim against the Cuban Government for losses, nor would the Cuban Government present its claim to the German Government nor to the Reparation Commission. If the Company wishes to present its claim to Germany or to the Reparation Commission direct it may do so, but the Cuban Government will take no action or interest in the matter.
Therefore, the President stated as the Cuban Government had not recognized and would not pay any claims of its own citizens, it did [Page 539] not feel constrained to pool these ships which it had taken over during the war for the benefit of the claim of any other Government, and he considered that Cuba was right in this matter as the legal authorities of the Department of Justice consider that Cuba has the right to the ships under the Treaty, and that under the Treaty it is optional with Cuba whether or not she shall enter the pooling arrangement.
The Cuban Government, however, does not intend to sell the ships outright, but merely to charter them, as they consider it more advantageous to keep the ships working until their status shall be definitely decided, rather than let them lie idle in Habana harbor. However, Article XIV of the terms on which these ships will be leased provides that the Government may cancel the contract at any time that the interest of the Government may require it, and should the authority of the Cuban Government to lease these ships be questioned at any time, the Government would, therefore, be in a position to rescind the contract and make such disposition of the ships as might be determined. A copy of the terms on which the ships can be leased was transmitted to the Department in my despatch (No. 173) of the 8th ultimo.42
The President promised to immediately telegraph the Cuban Legation at Rio de Janeiro, and find out just what statement was given by it to the Brazilian Government, and should it have misinformed the Brazilian Government of the attitude of the United States Government with regard to these ships, he has promised to have the erroneous statement corrected.
I have [etc.]
- Not printed.↩