Papers Relating to the Foreign Relations of the United States, 1920, Volume II

837.73/8

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

Habana , August 13, 1920 .
[Received August 18.]

No. 333

Sir: Referring to my despatches (Nos. 200 and 202) of June 18th⁶⁷ and June 19th respectively, in regard to the concessions asked for by the All America Cables Company, Incorporated, I have the honor to enclose, herewith, copies of the Official Gazette of the 2nd instant in which were published presidential decrees Nos. 1197, 1200, 1201 and 1202, granting the four concessions requested by Mr. Strahan on behalf of the above mentioned company.

The first two concessions are for cables from Habana to Mexico or some point in Central America to be determined by the Company, and to connect from there with the Company’s cables to the west coast of South America, and from Habana to New York.

These concessions follow rather closely those granted by the Cuban Government to the Western Union Telegraph Company and to the Commercial Cable Company, with one important exception, namely:—that Article 9 of both concessions stipulates that work should be begun, totally or partially, within a period of five years. Mr. Strahan was afraid that if a new Government should come into power after the next elections it might abrogate the concessions granted by the present Government especially if the work had not been begun on them, and, as explained in my despatch first above mentioned, work cannot be begun for a minimum of three years due to the shortage and difficulty of procuring cable making material. Mr. Strahan thought that by putting in a time limit under which the work should be commenced it would act as an offset to the abrogation of the concession for at least the period stipulated in Article 9 of these concessions.

The last two concessions are for cables from Santiago de Cuba to Guantanamo Bay, and from Guantanamo to Habana, with the privilege of establishing connections or sub-stations in any or all of the following places:—Baracoa; Nipe or Antilla; Gibara; Nuevitas or Tarafa; Puerto Padre; San Fernando or Moron; Caibarien; Sagua La Grande or Isabela; Cardenas and Matanzas.

There was some difficulty at first for the Government and Mr. Strahan to come to an agreement in regard to the terms of these last two concessions. The Government wished to stipulate that the rates would have to be at least three times as great as those in force on the Government-owned land-lines. The Director General of Communications was afraid that there would be competition with resulting loss in the income from the land-lines and hence wished to charge prohibitive rates. Mr. Strahan told me that this tariff would be of such a prohibitive nature as to cause his Company to throw over the concession; he pointed out that it would be several years at best before this line could be made to pay. The Government also wished to prevent the Habana and New York cable from transmitting any messages from other points in Cuba other than Habana, which would mean that messages from Caibarien, for instance, could not be forwarded to New York by the All America Cables but would have to be turned over to one of their competitors. I pointed out to the Secretary of the Interior the injustice of these demands and also called to his attention, the advantage, for the Cuban Government, to have an independent means of communication with the eastern end of the Island and intermediate points, if communication by the land-lines should, through political disturbances or other causes, be interrupted; also the advantage to the cities on the north coast, from the point of view of their commercial development, to have direct cable connection with New York and Central and South America. Colonel Hernandez agreed finally that the Government would ask the Company to charge no higher rates than those charged by the Government owned land-lines, and this stipulation was embodied in Articles 9 and 10 respectively of the last two concessions.

Mr. Strahan appears to have left Habana immediately after the concession was granted and the Legation, therefore, has no further information in regard to his Company’s plans other than what he gave me soon after his arrival in Habana to the effect that his Company is ready to lay immediately the cable from Guantanamo Bay to Santiago de Cuba; and that it will immediately place orders for the other cables which will be laid as soon as these are made, probably within the next three to five years.

I have [etc.]

Francis White

[Enclosure—Translation⁶⁸]

Executive Decrees of July 20, 1920, Granting Cable Concessions to the All America Cables, Incorporated ⁶⁹

DECREE NO. 1197

On the petition filed by Mr. Thomas R. Strahan, in the name and as representative of All America Cables, Incorporated, in which a permit is requested to lay one submarine cable or more between Habana and Cojimar or any other point in the vicinity designated by the company, the said cables to establish communication between Cuba and Mexico, or some other point on the Caribbean coast of Central America, in order to connect later with Panama and South America;

On hearing the opinion of the Director General of Communications and on the recommendation of the Secretary of the Interior;

Be it resolved:

1. To grant to All America Cables, Incorporated, a permit to land one or more submarine cables between Habana and Cojimar or any other point in the vicinity designated by the company, the said cables to establish communication between Cuba and Mexico or some other point on the Caribbean coast of Central America in order to connect later with Panama and South America, and to establish, subject to the inspection of the proper officials of the Cuban Government, lines of communication between the landing sites made on the Cuban coasts and the offices of the company wherever located in the city of Habana.

2. The permit is granted for an indefinite time without prejudice to the rights of third parties and shall not be understood to grant any monopoly whatsoever to the All America Cables, Incorporated.

3. The Government of Cuba reserves to itself the right to suspend this permit or to take possession of the plant at and for any time it may deem proper for the protection of the public interest. In such an event the Government will at its own discretion set the amount of the compensation or indemnity, if any be allowed, to be paid to the All America Cables, Incorporated.

4. The All America Cables, Incorporated, will at all times abide by the laws, regulations and orders now or hereafter in existence with regard to telegraph, telephone, and wireless communications, or any other system that may hereafter be operated within the Republic insofar as they are applicable.

5. The Government may at any time issue in connection with this permit such rules and regulations as it may deem of service to the public interest.

6. The grantee Company may ask to cause, for all legal purposes, a certain part of the work it is about to perform to be declared a public utility, the Government reserving to itself the right to grant or withhold, at its own discretion, the declarations in each and every case.

7. The spot of the landing of the cable will be determined, and the other works in the territorial waters and on the coast of Cuba will be conducted, in accord with and under the supervision of the competent authorities of the Cuban Government.

8. All connection or consolidations with the land lines shall upon an official permit previously granted be effected by officials of the Cuban Government.

9. The operations to which this permit refers must begin in whole or in part within five years starting from the date when the All America Cables, Incorporated, obtains permission from the Republic of Mexico or some other country of Central America that the All America Cables, Incorporated, chooses for landing the terminal or terminals of the aforesaid cables, and are to be completed within three years from the date of commencement, barring force majeure, or accident.

10. The permit granted by this decree to operate and maintain a cable service between Cuba and Mexico or some other point on the Caribbean coast of Central America will take effect from the date of the publication of this decree in the Gaceta Oficial.

Given at Habana, Palace of the Presidency , July 20, 1920.

M. G. Menocal

President

Charles Hernandez
Secretary of the Interior

DECREE NO. 1200

[The terms of this decree are the same as those of no. 1197, except that the cables were to be laid “between Habana and Cojimar or some other point in the vicinity designated by the company, with the consent of the Government of the Republic, and the City of New York or some other point in the United States of America.”]

DECREE NO. 1201

[The terms of this decree through article 8 are the same as those of no. 1197, except that the cables were to be laid “between Santiago de Cuba, or any other point in the vicinity designated by the company, and some point in Guantanamo Bay.”]

9. The tariffs put into effect by the company for the service authorized by this decree shall in no case be less than those existing for the Government telegraph service between the same points. In addition the company will grant to the Government half rates for official cablegrams.

10. The permit hereby granted by this decree will go into effect upon the date of its publication in the Gaceta Oficial.

Given at Habana, Palace of the Presidency , July 20, 1920.

M. G. Menocal

President

Charles Hernandez
Secretary of the Interior

DECREE NO. 1202

[The terms of this decree through article 8 are the same as those of no. 1197, except that the cables were to be laid “between Habana and Cojimar or some other point in the vicinity designated by the company, with the consent of the Cuban Government, said cables to have their other terminus at Guantanamo Bay.”]

9. The operations to which this permit refers must begin in whole or in part within five years from the date of this concession, and are to be completed within three years from the date of commencement, barring force majeure.

[Article 10 corresponds to article 9 of no. 1201.]

[Article 11 corresponds to article 10 of no. 1201.]

Given at Habana, Palace of the Presidency , July 20, 1920.

M. G. Menocal

President

Charles Hernandez,
Secretary of the Interior

67. Not printed.
68. Supplied by the editor.
69. Published in the Gaceta Oficial, Aug. 2, 1920.