837.51/515a

The Secretary of State to Messrs. J. P. Morgan & Company

Gentlemen: With reference to our conversation by telephone of this morning, when you stated that your Company, before proceeding further in negotiations for the flotation of a Cuban Government loan, desired to assure itself that the Government of the United States would consent to complete control by officials of this Government of the national finances of Cuba, I desire to inform you that the Department of State is not prepared at this time to make any definite reply in the matter. In view of the obligations of this Government under the Platt Amendment incorporated in the Treaty of 1903 between the United States and Cuba, the Department of State will feel itself obliged, before authorizing any increase in the public debt of the Republic of Cuba, to assure itself that the ordinary revenues of the Republic are sufficient to meet the service of such debt. The Department of State is advised that measures are now contemplated by the Cuban Government for the reduction of the national expenses and the increase of the national revenues to such an extent as to make possible the service of the proposed Cuban loan from the ordinary revenues of the Republic. When the Department is advised that such measures have become effective, it will consider further, in the light of its obligations above referred to, any proposals which you may desire to bring to the attention of the Cuban Government in connection with the flotation by you of the desired Cuban loan.

Believe me [etc.]

Charles E. Hughes