837.51/875
The Acting Secretary of State to the Cuban Chargé (Padró)
Sir: I have the honor to acknowledge the receipt of your note of the 18th instant [ultimo] in which you inform me, in compliance with instructions from your Government, that the Cuban Congress has voted and President Zayas has sanctioned the law of October 9, 1922, published in the extraordinary edition No. 16 of the Official Gazette, a certified copy of which you enclosed, Article 1 of which authorized the President of Cuba to issue bonds for an exterior loan in an amount not exceeding $50,000,000, payable in gold coin of the United States of America of the present standard and fineness.
[Here follows a recapitulation of the Chargé’s note, printed on page 1044.]
In reply I desire first of all to express to you my gratification at the information which you convey to me that this loan is to be contracted pursuant to the program of the Cuban Government for the solution of its economic difficulties.
[Page 1048]In view of your statement that the Cuban Government, pursuant to the report of the Commission charged with the revision of the internal revenues and tariff schedules, has provided for additional revenues estimated at $15,000,000 annually, and in view of the statements made in your note and the supplementary information submitted to the Department of State to the effect that the service of the proposed loan can be made from the ordinary revenues of the Republic, the ability of the Government of Cuba to meet the service of this proposed issue from its “ordinary revenues” as provided for in the treaty between Cuba and the United States of 1903, would appear to be indicated, provided that the annual expenditures for the present and succeeding fiscal years, during the life of the loan, are not increased in such manner as to imperil the service of the contemplated loan and the existing debts of Cuba.
As regards the adequacy of the specific revenues allocated to the service of the proposed loan, however, the Department is unable to express an opinion other than to say that it presumes that should these not prove to be sufficient at any time the President of Cuba will, in accordance with the authority granted him under the loan statute, pledge such additional funds from the ordinary revenues of the Cuban Government as may be necessary to meet the service charges, and I should be glad to have your confirmation of this. Subject to the foregoing, I am happy to inform you that the Department has no objection to the negotiation by the Cuban Government of the loan described in your note under acknowledgment.
Accept [etc.]