837.51 Public Works Debt/128: Telegram

The Chargé in Cuba ( Beaulac ) to the Secretary of State

108. I saw Colonel Batista22 this afternoon and urged upon him in similar terms to those used in previous conversations with Cuban officials Cuba’s need of immediately arriving at a settlement with its remaining public works creditors. Colonel Batista reiterated what Dr. Remos had said about our having differentiated between the claims of the bondholders and bankers and the claim of Warren Brothers and Purdy & Henderson and said that the political and economic difficulties Cuba faces are too great to permit a settlement with the remaining creditors at this time. When I asked Colonel Batista if I might tell the Department that he fully understood the difficulties Cuba might face particularly with the American Congress if its credit were not restored promptly but that the internal difficulties in the way of prompt settlement by Cuba were so great that they could not be overcome, Colonel Batista replied that I might say that he doubted that Cuba could make prompt payment to these creditors but that he would speak to President Laredo and to members of the Debt Commission and urge that an early study be made of the means of reaching agreements with those creditors.

Your telegram No. 74, October 6, noon, arrived after my conversation with Colonel Batista. Notwithstanding the observations you say in the last paragraph of your telegram you are making to the Cuban Ambassador and General Montalvo, I shall if you approve see Secretary of State and Colonel Batista again and reiterate the attitude you have consistently taken as outlined in your telegram.

Beaulac
  1. Fulgencia Batista, Chief of Staff of the Cuban Army.