Foreign Relations of the United States Diplomatic Papers, 1938, The American Republics, Volume V

837.51 Public Works Debt/13: Telegram

The Ambassador in Cuba (Wright) to the Secretary of State

Habana, April 22, 1938—1 p.m.
[Received 2:55 p.m.]

34. For the attention of the Under Secretary.¹² Pujol¹³ today informed Feustman that it has now been decided that on account of domestic, political and economic conditions settlement of Warren Brothers matter will be deferred until bonds of the 85 million issue have been registered, listed and in circulation.¹⁴ The balance of 9 million odd dollars remaining from this issue will be used as security for bank loan for funds to relieve situation arising from low sugar prices.

Pujol further said that Warren Brothers will be fully protected “if they do not make hostile moves or lose their heads” apparently referring to possible action against registration of the bonds.

Pujol said he would confirm this in writing to Feustman on Sunday and that he intends to call upon me tomorrow to explain foregoing. Feustman has telephoned Gow¹⁵ today.

Wright

12. Sumner Welles.
13. Guillermo Alonso Pujol, President of the Cuban Senate and chairman of a commission appointed under the law of February 14 to study the claims of Warren Brothers, Purdy & Henderson, and other claims.
14. For documents relating to this process, see Foreign Bondholders Protective Council, Inc., Annual Report, 1938, pp. 450 ff.
15. Charles Gow, President of Warren Brothers Co.