837.51/746

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

Dear Mr. Secretary: Reference to my cable No. 18, March 15th, 11 a.m. After conference with Stettinius16 and Morrow, I am convinced that the audit and liquidation of the current budget down to February 28th which I had induced Secretary Gelabert to undertake, and which was in progress at the time of Mr. Morrow’s arrival, will give us approximate figures as to any deficit in the current fiscal year and that we may, therefore, defer for the present, presentation of a demand for the very exhaustive audit I had in mind, until the time comes for the liquidation of the budget at the end of the current fiscal year.

I transmitted with my despatch of yesterday, March 24, 1922,15 a copy of President Zayas’ most recent Message to Congress. The [Page 1017] Department will notice his arraignment of the Congress for its inaction upon his most important recommendations, and in terms which demonstrate the incapacity of the Legislative Branch to deal with the present industrial and political crisis. The demonstration of such incapacity becomes complete with the consideration of the President’s demands upon the Congress for constructive legislation hereto appended marked “A”,17 and the legislation actually enacted by the Congress since the Zayas Administration was inaugurated hereto appended marked “B”.17 Meantime, the public press of Cuba has published many charges of a similar character directed, not alone against Congress, but against all other branches of the Government. The time is rapidly approaching when the Department can proceed with the necessary justification to employ the ultimatum in demanding of the Zayas Administration the accomplishment of certain essential reforms, and I shall at an early date ask the authority of the Department to employ this method. In this connection, see the concluding portion of my despatches of August 22nd17 and September 7, 1921.18

It has been my view, consistently adhered to, that the Zayas Administration should be given its fair chance to deal with the present crisis, assisted at every point by the advice of the United States Government. I think it is fair to try the case against the Administration upon the record that it makes during the current fiscal year. However, I shall not wait for the end of the fiscal year to ask the approval of the Department to make certain demands for specific reforms, to be accomplished within specified time limits, the necessity for which depends in no measure upon fiscal administration. I shall probably begin with the reorganization of the National Lottery in which the Department will recall Zayas promised to effect sweeping reforms within a period of five months. See my cable No. 66 of April 28, 1921.19 Another important demand, and of considerable urgency should be for action upon the contractual indebtedness of the Government in the Department of Public Works. I am now engaged in formulating these demands which I shall submit at an early date for consideration of the Department with a view to receiving its instruction; and I suggest that in the event the Department approves my recommendation for an ultimatum, the Zayas Administration be given warning through Minister Céspedes of the importance the Department attached to the specific reform recommended and of the firm attitude I have been instructed to take.

Very respectfully,

E. H. Crowder
  1. Edward R. Stettinius, member of the firm of J. P. Morgan & Co.
  2. Not printed.
  3. Not printed.
  4. Not printed.
  5. Not printed.
  6. Foreign Relations, 1921, vol. i, p. 726.
  7. Ibid., p. 692.