837.51/867

The Acting Chief of the Division of Latin American Affairs, Department of State (White) to the Secretary of State

Dear Mr. Secretary: General Crowder just telephoned from Habana to say that Congress last night held practically all-night session and passed the loan law, including the provision of the one [Page 1043] per cent sales tax by a vote of 86 to 12. The bill comes before the Senate today, and General Crowder expects quick action. He also expects the other reform bills to be passed this week, and that Congress will then adjourn until November.

He considers it important that he should come to Washington to confer with you before the fifty million dollars of the loan is turned over to the Cuban Government, and asked if this met with the Department’s approval. I told him I knew of no objection, and that he might consider there is none unless he hears from the Department to the contrary. If everything goes through as he expects, he will accordingly leave Habana some time next week, returning to Washington by sea in order to get a few days rest.

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White