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

No. 804

Sir: Supplementing my despatch No. 722 of June 8, 1931, I have the honor to transmit herewith additional memoranda of my conversations with various prominent Cubans, in order that the Department’s records may be complete.

Respectfully yours,

Harry F. Guggenheim

Memorandum by the Ambassador in Cuba (Guggenheim) of a Conversation With the President of Cuba (Machado)

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In the morning of June 8th, I asked for an audience with the President. The President, as usual, spent about an hour or an hour and a half discussing many subjects. I told him that I had advised my Government in regard to his decision to carry out the reforms and that I had called to inquire from him what the present situation was. He said that the House would consider this week the various [Page 67] proposals; that he would back the ponente’s plan, but was willing to listen to certain modifications. I reiterated my advice—that in order to effect the desired results he must carry out the plan in some manner that would appeal to the public and the newspapers, even if the opposition could not be satisfied. I pointed out that expeditious action was necessary; the political, economic and financial matters had reached a “low-water” mark, and that the political situation had better be rectified immediately so that the financial situation might be taken in hand. I told the President that I did not think the country could stand a $60,000,000 budget; that $50,000,000 was, in my opinion, the limit. He said he realized this, but was confronted with an impossible situation. He gave me a copy of the ponente’s plan which I told him I would study.

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