637.0023/15
The Ambassador in Cuba (Crowder) to the Secretary of State
[Received July 31.]
Sir: I have the honor to acknowledge the receipt of the Department’s instruction No. 92 of July 21, 1923, in which my attention was called to representations which had been made at the Department of State by Mr. Cummings of the firm of Sullivan and Cromwell of New York, attorneys for the Cuba Cane and Manati Sugar Companies, concerning Bills which it is believed Colonel José M. Tarafa, the President of the Northern Railways of Cuba, will shortly cause to be introduced into the Cuban Congress. The Department enclosed [Page 856] copies of projects of law as furnished by Mr. Cummings, and instructed me to make a complete investigation and report to the Department, by cablegram if necessary, to prevent any action prejudicial to American interests.
Having been informed by a number of interested persons that Colonel Tarafa had been refusing consistently to supply copies of his proposed laws to interested parties, I placed myself in communication with him immediately upon the receipt of the Department’s instruction, and obtained from him what he termed final drafts of the projects of law. I enclose herewith a copy in Spanish, and a suggested translation in English, of the projects; (enclosures Nos. 1 and 2 respectively).24 In view of the fact that the final drafts which were furnished to me by Colonel Tarafa differ considerably from those which the Department forwarded to me, I have handed copies of these final drafts to the local attorney of the Cuba Cane Sugar Corporation and the Manati Sugar Company, and have suggested that statements be furnished me as to the extent to which the passage of these laws would affect those Companies financially. I have also taken similar action with a view to obtaining the views of the Punta Alegre Sugar Company, an American concern which alleges that it will suffer heavy financial injuries if the Tarafa Bills are enacted.
The Tarafa proposals are causing a most profound stir in financial, railway, and industrial circles. This may be attributed in part to the general apprehension that the measures will be rushed through the legislature without affording time for various interested persons to formulate their views, organize opposition, or to take any measures to protect their interests; and is also attributable in part to the refusal of Colonel Tarafa to state the provisions of the projects in other than general terms. The Association of Mill Owners and Planters hastily convened a meeting a few days ago, and appointed a committee to interview Colonel Tarafa. I am enclosing herewith copy of a communication addressed to me by the Chairman of that Committee (enclosure No. 3)24 under date of July 25th last, setting forth various arguments against the proposed legislation and data upon which those arguments are based. The Department will note that this Committee is extremely antagonistic toward the Tarafa project. In the case of certain specific sugar companies this antagonism seems to be based on the fear that the enactment of the project would actually result in confiscation of large amounts of property. In order to indicate to the Department the extent of this alarm, I am enclosing herewith copies of communications I have received from the Francisco Sugar Company (enclosure No. 4),24 the Cunagua Sugar Company (enclosure No. 5),24 the Manati Sugar Company [Page 857] (enclosure No. 6),25 the Cuba Cane Sugar Corporation (enclosure No. 7),25 and the Punta Alegre Sugar Company (enclosure No. 8),25 all of which are entirely controlled, if not owned outright, by American interests.
Apart from the question of propriety of Colonel Tarafa withholding from interested parties information as to the details of his proposals, I am taking steps to obtain information as to the exact extent to which American interests would be injured by the enactment of the project.
Mr. Aurelio Portuondo, Chairman of the Committee appointed by the Association of Mill Owners and Planters informed me today that on Monday next the Association would make a written demand upon the Presidents of both Houses of Congress, for open hearings on the Bills. President Lakin of the Cuba Railroad Company, who favors the Bill, is in the City, but has not yet called at the Embassy.
I have [etc.]