837.51/1534: Telegram
The Ambassador in Cuba (Guggenheim) to the Secretary of State
[Received 6:20 p.m.]
128. Your 119, December 4 [3], 10 a.m. [noon.] Your reference to my telephone conversation with Mr. White fails to take into consideration my subsequent telephone call to Mr. White, November 10th, when I saw for the first time certain letters of credit Chase Bank to Secretary Averhoff. This second telephone call was expressly made to point out objection to paragraph “Third” page 3, which provided for formal public borrowing of the Cuban Government in excess of its capacity to discharge under present conditions and future prospects and therefore was in conflict with article II of the Permanent Treaty. The participation of American and British oil companies in my opinion greatly strengthened this objection to the financial plan.
I note that the Department does not concur with this view and shall follow the instruction to take no position in the premises.