837.152H11/435

The Minister in Cuba ( Long ) to the Secretary of State

No. 82

Sir: I have the honor to advise you that Mr. George B. Hayes reached Havana last Friday morning and that four hours thereafter we conferred with President Menocal who, when informed by Mr. Hayes that he was willing to settle on the basis mentioned in my recent telegrams, called in the Director of Public Works and advised him to prepare an “acta” which would embody the indespensable points relating to the contract and the method of settlement. Colonel Villalón was instructed by the President to go over the draft of the proposed “acta” with Mr. Hayes, so it might be signed at three o’clock on Monday afternoon.

About 10 o’clock Monday, April 19th, Mr. Hayes came here with a draft prepared by Colonel Villalón, the second clause of which contained a reference to pressure which had been brought upon Cuba by the United States Government. The expressions used were, in my opinion susceptible of various interpretations and I immediately visited the President and after some discussion with Villalón made [Page 107] arrangements for the modification of the phraseology which were assented to by General Menocal. I desired to eliminate all allusions to the international character of the contract, but Colonel Villalón insisted that the real thing which inspired the Cuban Government to settle was the pressure from our Government, and thought it inappropriate to omit such a reference. I held the ground that our representations looked to an arbitration, but that President Menocal chose the more direct method. The discussion was all of a friendly nature, and after making the clause as innocuous as possible it was permitted to stand.

Enclosed please find copy of the original draft97 as prepared by Colonel Villalón and of the modified draft as signed. Unfortunately an absence of clerks in this Legation prohibits my forwarding translations of the above.

The Secretary of Finance delivered to Mr. Hayes at 10:30 this morning the order to receive the Cuban bonds deposited with Speyer and Company, and the certificates to be exchanged for the bonds, thus closing the transaction.

I hope the part I have played in this matter may meet with the Department’s approval.

I have [etc.]

Boaz W. Long
[Enclosure—Translation]

Agreement, April 19, 1920, between the Cuban Government and McGivney and Rokeby Construction Company for the Final Settlement and Termination of the Contract

In the City of Habana, on April 19, 1920, Mr. George B. Hayes and Mr. R. Floyd Clarke, representing the McGivney and Rokeby Construction Company under a power of attorney issued before Henry B. Pogson, Notary of the City of New York, dated April 6, 1920, and registered under No. 1280, and Messrs. Mario G. Menocal, President of the Republic of Cuba, Josó Ramon Villalón, Secretary of Public Works, and Luther Wagoner, Chief Engineer of the Contract for the work of sewerage and paving of Habana, who composed the Commission provided for by Article 26 of the specifications of June 27, 1901, for the acceptance of the work in sewerage and paving of Habana, being assembled at the President’s palace, agreed upon the following:

  • First. That the work coming under the contract of paving and sewerage of Habana with the McGivney and Rokeby Construction Company has been completed and that the term of five years referred to in Article 20 of said specification of June 27, 1901, which form a part of the original contract has expired.
  • Second. that in view of the International character assumed by the contract under consideration and taking into account the repeated instances of the Government of the United States of America for the purpose of arriving at a prompt and friendly solution, the President of the Republic of Cuba, wishing to maintain the cordial friendship which has always existed between the two Governments, has decided to accept the work performed and the termination of the contract by the free will of both parties and to cause to be returned to the McGivney and Rokeby Construction Company the bonds and securities deposited by it and also the deduction of 10 per cent made on the payments for work done.
  • Third. The McGivney and Rokeby Construction Company accepts this decision of the Honorable the President of the Republic of Cuba and hereby relinquishes all other claims of whatever nature that may arise from or be related to the contract. The President of the Republic of Cuba, the Secretary of Public Works and the Chief Engineer of the contract for sewerage and paving of Habana who, in this instrument, represent the Cuban State, hereby make an identical waiver.

Therefore, the President of the Republic of Cuba, the Secretary of Public Works and the Chief Engineer of the contract for sewerage and paving of Habana, in compliance with Article 26 of the specifications of June 27, 1901, which form part of the contract finally accept and receive the work performed by the McGivney and Rokeby Construction Company and hereby declare the contract between the said Company and the Cuban State at an end under the conditions herein above stated, and the Secretary of Finance is hereby authorized to cancel the bond in the sum of $500,000. entered in favor of the McGivney and Rokeby Construction Company by the Continental Bonding Company and to return the 10 per cent now being held in the sum of $720,000. in bonds of the Republic of Cuba and deposited with Speyer and Company of the City of New York.

And for this due record of the present instrument is drawn up and signed by both parties.

M. G. Menocal

President of the Republic
José R. Villalón

Secretary of Public Works
Luther Wagoner

Chief Engineer of the Contract of Sewerage and Paving of Habana
R. Floyd Clarke

George B. Hayes

For the McGivney and Rokeby Construction Company
  1. Not printed.