837.51/515
Messrs. J. P. Morgan & Company to the Secretary of State
[Received July 14.]
Sir: We beg to acknowledge receipt of your letter of July 9th, 1921. We note that when the Department of State is advised that the measures now contemplated by the Cuban Government for the reduction of the national expenses and the increase of the national revenues have become effective, it will consider further, in the light of its obligations under the Platt Amendment, any proposals which we may desire to bring to the attention of the Cuban Government in connection with the flotation by us of the desired Cuban loan.
[Page 706]We had not intended to suggest the control by officials of the United States Government of the national finances of Cuba, but had in mind the necessity of some effective control, for instance, by officials appointed by the Cuban Government upon the nomination of the fiscal agents of the loan, with the approval of the United States. Without this safeguard, it has seemed to us, as well as to the bankers whom we have consulted, impossible to consider an issue of a Cuban Government loan to the American public.
The negotiations conducted last Fall with the Cuban Government, at the request of the Department of State, were abortive and we have not had any recent communication with that Government upon the subject. Of late, we have endeavored to keep in touch with the Department of State with a view of assisting, if possible, in a situation which appears to us to be of the utmost gravity.
In view of the relation which we have borne to the proposal for a Cuban Government loan, we have been anxious that we should not appear by any act or omission of ours, to delay the solution of the problem. Market conditions, however, in this country, and the special conditions affecting Cuba at this time, are such that it will be impossible to do anything for Cuba except upon a constructive plan having the hearty support of the Department of State. At the moment there seems nothing that we can do except upon some further suggestion from the Department of State or the Cuban Government.
Assuring you [etc.]