The Chargé in Cuba (Beaulac) to the Secretary of State
[Received September 13.]
Sir: Supplementing my confidential telegram No. 104, September 11, 10 a.m., I have the honor to report that, although the President [Page 778] has not yet sent any message to the Congress concerning the desired $65,000,000 loan, it is expected that he will do so in the near future. It is reported that the $65,000,000 figure was worked out by Colonel Batista and Ambassador Martínez Fraga and represents the $15,000,000 loan already requested plus the $50,000,000 loan which the Cuban Government spoke of following Colonel Batista’s visit to Washington in 1938.71
It will interest the Department to know that I was told on very good authority that Colonel Batista, during recent conversations with members of the House of Representatives, was asked by a member of the House what assurance he had that Cuba would receive a loan if the public works debt bill were passed. Colonel Batista is said to have replied that he had received no assurance, but that he was confident that the loan could be obtained because if the United States Government placed obstacles in the way of a loan, he would suspend service on Cuba’s entire foreign debt.
The Embassy knows that Colonel Batista had in mind this possibility last year, at the time negotiations for a Supplementary Trade Agreement were suspended by the United States.72