Papers relating to the foreign relations of the United States, 1929, Volume II

437.11H23/96

Agreement Between the United States of America and Cuba, Signed at Habana, October 1, 1929³⁹

Whereas, the citizen of the United States of America, Charles J. Harrah, has claimed through the diplomatic representatives of his country in Cuba an indemnity for damages which he says were caused by the destruction of a narrow gauge railroad located on the beaches of Marianao, Jaimanitas and Santa Ana or Santa Fe in the Province of Habana.

Whereas, since that date there has been extensive diplomatic correspondence between both Governments concerning the allegations made by Harrah without any agreement having been reached up to the present time.

Whereas, the Governments of the United States of America and Cuba have repeatedly expressed in Conferences and other International Acts their intention to resort to arbitration as a means of settling their differences.

Now, Therefore: The two Governments, that of the United States of America and that of the Republic of Cuba, the former represented by Mr. Edward L. Reed, its Chargé d’Affaires ad interim at Habana, and the latter by Dr. Francisco Ma. Fernández, Acting Secretary of State, have agreed as follows:

I. —The claim of the citizen of the United States of America, Charles J. Harrah, shall be submitted in conformity with the conditions hereinafter set forth, to two arbitrators, one a national of the United States of America and the other a national of the Republic of Cuba. These arbitrators shall be designated respectively by the Governments of the United States of America and of Cuba.

II. —The decision of the arbitrators shall cover the four following points:

A. —Did the competent authorities of the Cuban Government approve a permanent narrow gauge railroad between the beaches of Marianao, Jaimanitas and Santa Ana or Santa Fe?

B. —Was the railroad hereinbefore described lawfully or unlawfully destroyed?

C. —Has Charles J. Harrah the right to make claim as its owner?

D. —In the affirmative case, what indemnification should Harrah receive as reparation for the damages done him?

III. —The two arbitrators will begin their sessions in the City of Habana or such other place as may be agreed upon by them within thirty days after the signing of this agreement, and they shall continue in session until the final determination of the case.

IV. —The procedure to be followed by the arbitrators shall be fixed by themselves in so far as it does not violate the following rules:

A. —Each Government shall designate counsel to represent it before the arbitrators and to present to the Court orally and in writing all the arguments and proofs which they may consider desirable in the interests of the parties.

B. —The counsel of the United States of America shall present within ten days from the first meeting of the Tribunal, a statement of the claim with supporting evidence.

C. —The counsel of the Cuban Government shall present his answer to the plea within thirty days following the presentation of the statement of the counsel of the United States of America.

D. —All proceedings shall be in the English and the Spanish languages.

V. —The decision of the arbitrators shall be given within four months from the date of the first meeting of the Tribunal, exception made of inevitable delays, but in no event later than thirty days following the final arguments.

VI. —In the event that the two arbitrators do not agree upon the final decision to be given in the case nor upon the selection of a third arbitrator who shall decide the disagreement, the two Governments shall choose the third arbitrator in accordance with the procedure stipulated in Article III of the General Treaty of Inter-American Arbitration of January 5, 1929.

VII. —In this case, the third arbitrator designated by the arbitrators previously named or by the procedure provided in the previous article shall examine the evidence produced in support of and against the claim, shall hear counsel of both sides and shall render the decision.

VIII. —The decision of the arbitrators or that of the umpire, as the case may be, shall be accepted as final, conclusive and unappealable by both Governments. If the said final decision be in favor of the claimant, the amount of the indemnity will be paid by the Government of Cuba to the Government of the United States of America, within sixty days from the date of its rendition. However, if for reasons of a fiscal nature it cannot be paid within that period, the amount of the indemnity shall bear interest at the rate of six per cent per annum from the date on which payment should have been made.

IX. —Each Government shall pay its own expenses, including compensation of its own arbitrator and counsel. The salaries and other expenses which may be incurred through the designation of a third arbitrator shall be borne exclusively by that party whose allegations may have been rejected in the final award.

Done in duplicate in the English and Spanish languages, at Habana, the first day of October, nineteen hundred and twenty nine.

Edward L. Reed

,
Chargé d’Affaires ad interim of the United States of America

F. M. Fernández

,
Acting Secretary of State

39. In English and Spanish; Spanish text not printed. Original texts transmitted to the Department by the Chargé in Cuba in his despatch No. 839, October 1, 1929; received October 5.