837.51/561: Telegram
The Representative on Special Mission in Cuba ( Crowder ) to the Secretary of State
[Received 5:37 p.m.]
104. Yesterday the House of Representatives took up quite unexpectedly to me the pending budget bill, approved in principle the said bill as it passed the Cuban Senate August 3rd, an advance copy of which I transmitted with my despatch number [unnumbered’] July 18th, 1921,43 and the Senate copy of which has been shown the Department by the Gelabert Commission. Bill is being read today in the House article by article for amendments and will doubtless be passed today.
In July I attended a session of the Mixed Commission presided over by President Zayas and explained the importance of this budgetary law and as well of a revision of the tax laws in establishing the public credit. I announced also my desire to work with subcommittee appointed to consider revision downward of the budget and upward of the tax laws. Notwithstanding this notice I have not been consulted either as to this budget law or as to the project of an exterior loan statute, transmitted as exhibit B to my despatch of August 11th,43 and which carries a piecemeal revision of the tax laws. Not having had any opportunity for conference with committees of Congress or department officials respecting the provisions of either bill, I am without the information necessary to express a final opinion upon either but from information which I have gathered, I entertain no doubt as to the result that the budget should be further reduced beyond the point provided in the bill now under consideration and that the piecemeal revision of tax laws relied upon to provide the increased revenues necessary to defray expenses of Government and meet the service of the public debt were [was] inadequate. It is difficult to understand why the Cuban [Page 719] Congress is rushing final action upon legislation so vitally affecting negotiations now in progress at Washington unless advised so to do by the Gelabert representatives.