837.51/781: Telegram

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

30. Captain Castillo in a conference with President Zayas yesterday explained with desirable emphasis every detail of interesting interview with Secretary Hughes. In the course of that conference President Zayas remarked that he felt assured that the Cuban Senate would pass a budget in a very short time but that complications had arisen in the Cuban Lower House which made it problematical whether that house would pass the budget. He further stated to Captain Castillo that in view of the serious situation that would then be created, he contemplated the possible necessity of himself establishing a budget and of [stipulating?] the unofficial approval of such action by the United States but not involving in any way the authority of the Piatt amendment. The President feels that such a course would supply the vital need of the public administration that would be created by the failure of the legislative branch to comply with its constitutional obligations and duties regarding the budget and that with the unofficial approval above mentioned, the question of constitutional irregularity of such action would not be seriously raised.

I share President Zayas’ apprehension of inaction of the Lower House. Failing the enactment of a proper budget for the next fiscal year the political and financial situation of the Republic would be most serious and the continuance of the Zayas administration dangerously threatened. While the situation might be saved by such action as President Zayas appears to contemplate, if taken in unofficial accord with the United States Government, the consent to such a measure cannot, in my judgment, even be considered unless during the month of June President Zayas gives ample evidence of a complete change of policy by entering definitely upon the execution of the program of minimum reforms as outlined in my four memoranda numbers 6, 7, 8, and 10 and establishes that full cooperation with the Department which alone can guarantee the effective continuance of the new policy.

I intend to arrange an early interview, not later than Thursday June 1st, with President Zayas and say to him that my Government has directed me to ascertain at that interview what his decision has been respecting the program comprised in said memoranda which have now been in his possession for prolonged periods, and to agree upon with him the definite measures that must be given immediate [Page 1030] execution if the program is to be effective by the beginning of the fiscal year. It would be most helpful if previous to that interview President Zayas should receive notice through the Cuban Minister at Washington that the State Department considers the interview of especial importance and expects definite steps to be taken immediately thereafter.

Crowder