837.51 Chase National Bank/8: Telegram

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

107. Your despatches Nos. 30525 and 306, June 13 and 14, 1928. Department has informed Chase National Bank it will not object to its financing proposal. Bank presented the matter as urgent since agreement is not binding until ratified by Cuban Congress.

Please present the following memorandum to the Secretary of State:

“The Government of the United States, after careful consideration of the information regarding the Cuban financial situation transmitted to it through the American Embassy in Havana in response to the memorandum presented to the Acting Secretary of State of the Cuban Government, May 28, 1928, and of the draft ‘Supplemental Agreement between the Republic of Cuba and Chase National Bank of the City of New York relating to Financing Payments to Contractors under Public Works Law’ does not desire to raise any objection to the increase in the public debt of Cuba involved in the execution of the latter contract.”

You may indicate orally to the Secretary of State and to the President that, inasmuch as the Cuban Government’s memorandum of May 29, 1928, states that the purpose and reason for the proposed financing are to intensify the public works in accordance with Article 10 of the law of July 15, 1925, an unfortunate impression would be produced were the Special Public Works Fund drawn upon even temporarily to meet ordinary expenses of the Cuban Government [Page 654] during the time the latter is financing its public works program under its agreements with the Chase National Bank.

Kellogg
  1. Not printed.