837.51 Public Works Debt/133: Telegram
The Chargé in Cuba ( Beaulac ) to the Secretary of State
[Received 4:17 p.m.]
113. For the Under Secretary. My telegram No. 110, October 7, 6 p.m. Ambassador Martinez Fraga returned here from Washington Saturday October 8. He called this morning to say that the President and Colonel Batista had now agreed to payment of Warren Brothers and Purdy & Henderson in unallocated bonds of the series exchanged for public works bonds but that the President believes that an announcement of intention to revise the trade agreement23 should be made first in order that public opinion in Cuba should be better prepared to receive his message to Congress requesting authorization to make payment in the bonds. The Ambassador says that Colonel Batista does not attach the same importance to the need for such prior announcement of intention to revise the trade agreement. The Ambassador says that he will continue to urge the President to send the message to Congress immediately without waiting for any announcement with reference to the trade agreement.
I naturally pointed out to the Ambassador the extent to which Cuba’s hand would be strengthened by its having completely settled its public works debt and expressed the opinion that in Cuba’s own interest this step should be taken immediately. He said he agreed and would endeavor to impress this view on the President.[Page 483]
The Ambassador said that the Government anticipated no difficulty in obtaining the Congress’ approval of payment in unallocated bonds of the new series.
Have you any observations for me to make to the President or to the Cuban Ambassador?
Martinez Fraga said he would send you a memorandum regarding the project for the revaluation of mortgage credits within a few days.
The Ambassador authorized me to say that the Government promised that decree law No. 52124 would not be tampered with.
The Ambassador said he had definitely encouraged the President and Colonel Batista to believe that the United States is prepared to agree to a revision of the trade agreement and is prepared to cooperate in the establishment of a national bank here.