837.152H11/435
The Minister in Cuba (Long) to the
Secretary of State
Habana, April 20,
1920.
[Received April 24.]
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.]
[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
