437.11/3–1849
The Ambassador in Cuba ( Butler ) to the Secretary of State
Sir: I have the honor to report that the Cuban Government has liquidated certain long-outstanding obligations to the National City Bank of New York and to the Western Union Telegraph Company, and it is expected that before the end of the current month further payments will be made to the Hershey Corporation, the All America Cables & Radio Company and others.
[Page 626]The payments which have now been made appear as the outcome of my recent conversation with President Prío,1 in which I again stressed the importance of liquidating sums owed to United States nationals which have long been pending. The President assured me of the desire of his Government to meet these obligations but explained that the present fiscal situation of the Treasury would not permit immediate settlement of the very large sums involved. He agreed, however, with my argument that the Cuban Government should demonstrate its disposition to liquidate these claims by initiating payment on such of them as the Treasury could handle immediately. The President appeared impressed with the argument that such action would have a favorable effect in business and financial circles and he informed me that instructions would immediately be given to the Minister of the Treasury to pay off certain claims adjudicated by the Cuban courts in such amounts as were immediately available.
In consequence thereof, on March 9 a check in the amount of $13,331.04 was delivered by the Treasury to the local manager of the National City Bank of New York, and a check in the amount of $11,825.20 was likewise delivered to the manager of the Western Union Telegraph Company. These payments cover various claims for excess taxes which have been supported by decisions of the Cuban courts and which date back to 1928. Other payments to the Hershey Corporation and to various American-owned cable companies which fall in the same general category are now being processed in the Treasury and the Embassy is informed that checks are expected to be issued shortly.2
I am enclosing copy of a statement3 released by the Embassy on the subject of these payments which was given prominent and favorable coverage in the local press. While the amounts thus far paid are admittedly small in relation to the total involved, I feel that this action on the part of the Cuban Government is an encouraging sign of its good intentions to clear up a problem which has been pending for so many years between our two Governments. I will, of course, continue my efforts to induce the Cuban Government to take action on the remaining claims.
Respectfully yours,