837.51/680
The Cuban Minister (Céspedes) to the Secretary of State
Mr. Secretary: I have the honor to inform Your Excellency that my Government having formulated a program for the suitable solution of the economic difficulties by which it is at present confronted and of which Your Excellency’s Government is fully informed, has obtained from the National Congress the needed authorization to negotiate a $5,000,000 loan to be secured by $7,000,000 worth of bonds of the issue of 1917 and stock of the National Bank pledged as security that is in the National Treasury of the Republic. The proceeds of this loan will be applied to pending liabilities, preferably foreign, such as postal money orders, interest and amortization of the foreign debt; the stock will not be transferred but pledged as collateral until a foreign loan of $50,000,000 is obtained by the Government of Cuba for the payment of the floating debt and other liabilities, including the said temporary loan, under proper authority from Congress as soon as the national taxes and customs duties are revised in accordance with the financial readjustment that my Government is carrying out at the present time. In order to complete the negotiations and secure the $5,000,000, my Government wishes to know whether, under the provisions of Article 2 of the Treaty of Permanent Relations between Cuba and the United States, dated May 22, 1903, Your Excellency’s Government has any objection to raise against the aforesaid loan.
I renew [etc.]
- File translation revised.↩