837.51/643 supp.: Telegram
The Secretary of State to the Chargé in Cuba (Cable)
180. For General Crowder:
Department’s 179, November 19, 6 p.m.
The Cuban Minister, as result of a conversation in the Department on November 19, sent a cable to President Zayas similar in tenor to the cable above referred to. The Minister has today received a reply from Dr. Montoro,75 by instruction of the President, to the following effect:76
The President states that the Executive received from Congress, on October 22, the law of that date requiring the publication of the [Page 762] budget for the current fiscal year before the 1st of November; that the President eliminated in eight days about $17,000,000 of annual expenditures, reducing the present budget to a little more than $64,000,000, acting in accord with his commitments contained in his letter to you of October 16, except for the fact that the Cuban Government has not yet demonstrated to the satisfaction of the Government of the United States that the expenditures proposed in excess of the minimum of $50,000,000 up to the limit of $65,000,000 are essential to procure the efficient operation of the Cuban Government. Said demonstration, the President states, is now being prepared.
With reference to the budget of the fiscal year 1922–1923, the President states that the project presented to Congress on November 15 was due to the necessity of complying with the constitutional provision that it be presented on that date, although his purpose of modifying said project in accordance with his promises to you before that budget is discussed next April has been formally announced.
The President then states that the constructive financial program outlined in his letter of October 16 contains in its 1st paragraph the flotation of a temporary loan of $5,000,000 which would not be the first step of the program if deferred until the total fulfillment of the succeeding paragraph, and assures the Department that the Cuban Government is not only fulfilling by the means which conditions permit the 2d and 3d paragraphs of the said letter, but is already endeavoring to carry out paragraphs 7, 8, 9, 10 and 11.
In conclusion, the President remarks that while the Department estimates the total revenues of the Cuban Government for the current year at $50,000,000, its calculation must be problematical, since, in his opinion, it should not be deduced from the collections for the previous months of the present fiscal year, and that moreover that situation is foreseen, and remedies for it provided in paragraphs 5, 6, 7, 8 and 9 of his above mentioned letter.
The Department appreciates the urgent necessity for the Cuban Government obtaining the $5,000,000 of the projected temporary loan. In view of the spirit manifested in the statements of the President, above referred to, if the President should send to Congress a message supplementary to his budget message of November 15,77 announcing that it is his purpose to effect further reductions in the budget for the current fiscal year, or advise you in writing to the same effect, and indicate the branches of the Government in which such economies are to be effected and their probable extent, the Department would be disposed to sanction the $5,000,000 temporary advance unless there is, in your opinion, some valid objection to such action by this Government.