837.51/594: Telegram

The Representative on Special Mission in Cuba (Crowder) to the Secretary of State

119. Reference your number 155. Receipts of National Treasury from all sources since May indicate that total receipts for the current fiscal year under present laws may not exceed 66,000,000. If Zayas adheres [to] his 65,000,000 budget, as I think he will, the burden of interest and amortization of additional loan as well as the liquidation of the large floating debt must fall almost exclusively, and in any event mainly, upon revenue revision. I think that financial aid can be so conditioned as to facilitate and expedite revenue revision but I doubt if it can be conditioned on budgetary reduction—see my telegram of September 11, 7 p.m., 112, concluding paragraph. Nevertheless I strongly advise and recommend that J. P. Morgan and Company send partner here for conference with me and later with President Zayas to undertake the task of convincing the Cuban Government [Page 735] of the exact nature of her financial problem, the character of financial aid required, and the condition upon which it can be obtained. He should be a man competent to advise upon essentials of loan contract and loan, statute from bankers’ point of view and should come as promptly as possible.

Crowder