Papers Relating to the Foreign Relations of the United States, 1922, Volume I

837.51/830: Telegram

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

Washington, September 6, 1922—7 p.m.

61. Your 58, September 5, 3 p.m.

(1) It is not clear from the information at hand whether the issue of proposed interest-bearing certificates would constitute an increase in public debt within the meaning of the Treaty, or whether the revenues of Cuba after defraying current expenses of the Government are adequate for the service thereof. The Department would be glad to have your views and additional information before expressing an opinion. If time presses suggest you telephone upon receipt of this telegram.⁴⁷

(2) The Department is inclined to leave to your judgment the decision as to whether funds should be raised by the issue of certificates of indebtedness or by a public loan. However, in any event, the Department expects that proper provision will be made for the payment of the Morgan loan, and the arrears of the interior debt, and for the proper distribution of the proceeds resulting from the sale of the certificates of indebtedness.

(3) The Cuban Chargé informally advised Department on 5th that the revenues for the months of July and August were sufficient to meet all obligations incurred or falling due during those months, and that, moreover, there was a balance of $2,000,000 in the Treasury for the same period. Please inform the Department as to accuracy of this report.

Phillips

47. On Sept. 7, General Crowder telephoned opinion that loan, or indebtedness created by Ferrara bill, would require sanction of United States (file no. 837.51/830).