837.00/2274
The Acting Chief of the Division of Latin American Affairs, Department of State (White) to the Secretary of State
Dear Mr. Secretary: I spoke with General Crowder over the ‘phone this afternoon and he stated that he feels that it would be better for him to come to Washington, and he will leave tomorrow morning, arriving here on Friday. He stated that the Senate has passed the amnesty law, which will now go to the House, and which will, if enacted, completely upset the whole program reforming the Cuban administration. All of the men indicted in the lottery scandals will immediately be liberated, and it would be impossible to punish corruption. General Crowder stated that President Zayas yesterday told him that the bill will not become law. General Crowder is seeing him again at four o’clock this afternoon, and will tell him that he feels very strongly that this bill, if passed by the House, must be vetoed by him. General Crowder feels that the Department should not consent to a loan unless this amnesty bill is definitely killed.
He further stated that Mr. Morrow of Morgan and Company telephoned to him a few days ago, waiving any special rights which J. P. Morgan and Company may feel they have to a preferential position with regard to floating the loan on account of the five million dollar advance made by them last December. This, therefore, would seem to open a way to public bids for the loan. President Zayas has not yet drawn up any regulations or plans for calling for bids. General Crowder, at my request, stated that he would endeavor to obtain an indication from him before leaving Cuba as to his intentions in the matter. He stated that the Banco de Commercial [Page 1044] has made two advances, one for $400,000 and one for $500,000, to the Government in anticipation of the loan.
As regards the American audit expert, he stated that President Zayas had yesterday told him that he is in accord with the idea and would give him written confirmation of it today. Upon receipt thereof, General Crowder will telegraph the Department and the matter of Mr. Gilbert52 going to Cuba can then be immediately taken up with the Treasury Department.
- Mr. S. P. Gilbert, Under Secretary of the Treasury; the appointment under consideration at this time was not made.↩