The Acting Secretary of State to the Ambassador in Cuba (Guggenheim)

No. 63

Sir: With reference to your recent reports concerning the negotiations entered into by the Government of Cuba with the Chase National Bank for the purchase by the latter of an additional issue of Cuban Government bonds, and in confirmation of the Department’s telegram No. 27, dated February 7, 4 p.m., 1930,25 you are advised that the Department has informed the Chase National Bank that it has no objection to offer to the proposed financing.

You are accordingly directed to present to the Cuban Secretary of State a memorandum in the following terms:26

“I am instructed by my Government to inform you that it has been advised by the Chase National Bank of New York of a proposal for new financing by the Cuban Government, and that in view of the circumstances of the case the Government of the United States does not perceive occasion for raising any objection to the proposal in question.”

[Page 691]

As you will observe, the wording to be employed in this memorandum differs to some extent from that suggested in your despatch No. 77, of January 31, 1930. It has seemed to the Department, however, inadvisable to relinquish entirely the recognition of our position in such matters resulting from the Platt Amendment. It is believed that the memorandum as drafted, meets this need, while at the same time it would seem to avoid any possibility of wounding the sensibilities of the Cuban Government.

For your information there is enclosed herewith a copy of a letter dated January 31, 1930, addressed to Assistant Secretary of State White by the Chase National Bank, summarizing the arrangements which are contemplated with respect to the present financing.27

I am [etc.]

For the Acting Secretary of State:
Francis White
  1. Not printed.
  2. Presented in note of February 12, 1930; receipt of memorandum acknowledged by Cuban Secretary of State on February 17, 1930 (837.154/115).
  3. Not printed. For text of decree No. 189 relative to financing agreement with the Chase National Bank of New York City, see Gaceta Oficial, February 10, 1930.