The Cuban Ambassador (Martínez Fraga) to the Department of State58
The Cuban Government sees itself obliged in view of the crisis in its revenue collections to consider a drastic reduction in the budget or to find an urgent emergency solution which will make unnecessary that reduction. The reduction method is considered dangerous and all of us who have been consulted have declared against it for a number of powerful reasons. I think that the best solution would be to negotiate a loan exclusively devoted to meeting the deficits of 1940–1941. The Cuban Government would like to know with the greatest possible speed if the Government of the United States, taking into account the serious situation faced by Cuba as a result of the general crisis in her principal markets, would be disposed to collaborate in the immediate solution indicated above, authorizing the negotiation of a loan through the Export-Import Bank or if that were impossible lending its friendly and confidential support to the negotiations which may be attempted with private banks. The general lines of the operation required by Cuba are: $15,000,000 with interest at 3½ per cent for a 20–year period with the guarantee of the 8 cent tax used in connection with the Chadbourne sugar issue. The extreme urgency forces me to make this consultation by cable. A projected bill will be sent tomorrow by air but I would appreciate some advice before recommending the presentation to Congress of said projected bill. The Senate will vote tomorrow on the Casanova bill regarding obligations.