837.51/567: Telegram
The Secretary of State to the Chargé in Cuba ( Cable )
148. For General Crowder.
Your 107, August 20, 10 a.m.
The Department has given careful consideration to the conclusions which you have reached. The Department approves of your conclusions and recommendations and has communicated them to the Gelabert Commission. The Department desires yon to inform President Zayas that it considers it highly desirable that steps be taken to carry out the plan suggested by you without delay.
With reference to your 3d conclusion, the Department concurs in your opinion as to the desirability of an immediate revision of the Cuban budget downward to the lowest practicable figure, but has not received sufficient detailed information from you to enable it to point out to the Commission the manner in which the budget can be cut to $50,000,000 or $55,000,000 as suggested by you. The Department is informally advised that the Commission will inform the Department August 26th, that the budget cannot be cut lower than $64,000,000. You are therefore desired to cable immediately any suggestions which you may be able to offer as to further economies which could be effected and thus reduce the budget as projected by the Cuban Commission to the figures indicated by you.
A suggestion has been informally made by the Cuban Mission that if the Department of State would raise no objection at present to a budget of $64,000,000, the next annual budget, to be approved in the session of the Cuban Congress meeting in November, would be more easily reduced to a figure approximating $50,000,000. Please advise Department of your opinion.
Secretary Gelabert will advise President Zayas that he considers it desirable that a comprehensive revision of the internal tax laws be undertaken immediately as a condition precedent to the flotation of the exterior loan. He has stated that it would be desirable for President Zayas to appoint a legislative commission to undertake the drafting of a project of such revision, with your assistance. It appears advisable that a revision of the Cuban tariff be undertaken coincident with such tax revision. If such Commission is appointed and if a revision of the tariff is undertaken at the same time, advise Department whether you desire services of tariff expert recommended in Department’s 139, August 1, 6 p.m.47