837.154/121
The Ambassador in Cuba (Guggenheim) to the Secretary of State
Habana, November 6, 1930.
[Received
November 10.]
No. 418
Sir: Supplementing my despatch No. 416 of
October 31, 1930, relative to the financing by the Warren Bros. Company
and the
[Page 696]
Compañía Cubana de
Contratistas of the work that is being done by them on the Central
Highway, I have the honor to report that I have received a letter, dated
November 4, 1930, from President Machado acknowledging receipt of my
letter of October 29, 1930, and stating his conformity therewith.
Copies of President Machado’s letter and of a translation of the same are
transmitted herewith to the Department.
Respectfully yours,
[Enclosure—Translation33]
The President of Cuba (Machado) to the American Ambassador (Guggenheim)
Habana, November 4,
1930.
My Dear Mr. Ambassador: Pursuant to your
letter of October 29, last, relative to the issue of Treasury
Certificates (Obligaciones del Tesoro) to pay for the work on the
Central Highway until its completion in February, next, I am pleased
to state to Your Excellency that the said issue constitutes solely
an advance against the proceeds of the sale of the $40,000,000 of
Public Works Gold Bonds (Bonos Oro de Obras Publicas), which are
encumbered only by the loan of $20,000,000 made by the Chase
National Bank, and that the whole of the debt charged upon the
Public Works revenues shall not exceed $100,000,000, for the
following reasons:
- (1)
- Even though in one of the bases of this new negotiation 70
per cent of the net proceeds of the sale of the $40,000,000
is stipulated as guarantee, that being required by the
Contractors, yet the Government has the right to apply the
whole of the said proceeds to the taking up of the new
certificates.
- (2)
- The new issue has been authorized up to $20,000,000 and it
is my desire to endeavor not to carry it to its limit, in
order that the balance not used may offset any loss that may
occur in the sale of the prior issue.
- (3)
- The anticipated amortization of the 5½ per cent Public
Works Series Certificates, for which $1,000,000 has already
been deposited with the Chase National Bank, is being
effected and will be continued in accordance with the terms
of the contract.
I renew [etc.]
