Office of the Historian

837.51/1283

The Ambassador in Cuba (Judah) to the Secretary of State

Habana, May 28, 1928.
[Received May 31.]
No. 280

Sir: I have the honor to acknowledge receipt of your telegram No. 90, May 25, 7 PM., in regard to the proposed new financing by the Government of Cuba, and to enclose herewith a copy of a memorandum which I this morning presented to the Acting Secretary of State in this matter.

The Acting Secretary of State told me that he would take the matter up with President Machado today.

I have [etc.]

Noble Brandon Judah
[Enclosure—Memorandum]

The American Ambassador (Judah) to the Cuban Acting Secretary of State (Fernandez)

Habana, May 28, 1928.

The American Ambassador has today been directed to inform the Cuban Government that one of the American Banks which has submitted a bid in connection with the proposed new financing under the general plan of the law of July 15, 1925, has consulted the Government of the United States to ascertain whether that Government has any objection to the credit arrangement which this Bank has proposed to the Government of Cuba.

In view of this inquiry, the American Ambassador has been instructed to renew his request, heretofore orally made, to the Secretary of State of Cuba, that his Government be furnished with the information respecting this proposed financing which will enable it to act on the matter with full knowledge of the facts of the situation.

For this purpose, it is therefore requested that the Government of the United States be furnished with information in connection with this proposed new financing, covering the following points:

1.
The amount of the proposed financing.
2.
The purpose and the reason for the proposed financing.
3.
The sources of revenue to be hypothecated for the service of the proposed financing.
4.
The amounts which these sources of revenue have produced in recent years.
5.
The amounts which it is conservatively estimated these sources of revenue will yield in the future.
6.
The amounts of the ordinary revenues of the Cuban Government during recent years, exclusive of the sources of revenue to be hypothecated for the service of the proposed financing.
7.
The amounts of the ordinary disbursements of the Cuban Government during recent years, exclusive of disbursements made from the sources of revenue to be hypothecated for the service of the proposed financing.
8.
Any other facts showing whether or not the use of the special sources of revenue to be hypothecated for the servicing of the proposed new financing will leave the ordinary revenues of the Cuban Government sufficient to defray its ordinary disbursements.

It is possible that, in connection with the proposed new financing, the Government of Cuba may have prepared connected studies which it will not find inconvenient to place at the disposal of the Government of the United States for this purpose.