837.51/566: Telegram
The Representative on Special Mission in Cuba (Crowder) to the Secretary of State
[Received August 20—1:20 a.m.]
106. Referring to your number 145, August 17th, 4 p.m. Have just concluded two-hours conference with President Zayas. He readily agreed to take effective steps at once to defer further action by Congress on both exterior and interior loan statutes pending outcome of conference at Washington.
Referring to your 146, August 18, 5 p.m. Upon disagreeing vote of the Senate budget bill went to conference where Zayas promises to hold it pending further exchange of views between the two Governments. He showed me telegram from Céspedes stating that the Department had demanded the veto of this bill and asking for instructions. Zayas claims that under the bill he is left sufficient discretion to limit the expenditures and that he will exercise that discretion in such a way as to keep the budget expenses within 65 millions; that he will favor an amendment to the bill appropriating all receipts over that amount to the liquidation of the floating indebtedness incurred prior to May 20th, 1921, payable monthly; that he would bind himself in an exchange of notes to veto any law enacted by the Cuban Congress in all recentdate appropriations, that [assigns?] excess [of revenue?] or any portion of it to any other purpose than the extinction of the floating debt and that he will utilize the time that the bill is in conference to frame a tentative budget along these lines. He asks the Department to hold in abeyance its [request?] for veto until he can complete the tentative budget and submit the results to the judgment of the Department. He promised to telegraph Céspedes in this sense tonight.
I doubt if under parliamentary rules the bill is subject to the amendment proposed by Zayas. I think it doubtful also if Zayas is given the discretion he says he has under its expenditures. I am holding further conference on this and other parts of the bill tonight with a member of Congress and Secretary Cortina46 and hope to make definite recommendations tomorrow.
- Dr. J. M. Cortina y Garcia, Secretary to President Zayas.↩