837.00/3646: Telegram
The Ambassador in Cuba (Welles) to the Secretary of State
[Received 4:25 p.m.]
155. For the President. I deeply appreciate your message. Without the unfailing support you have given me this solution, now promising to make possible a period of peaceful reconstruction in Cuba, would never have been obtained.
I feel we should determine at the earliest possible moment what if anything we can do to tide the new Government over financially. As you know, the Government is bankrupt and Government employees are practically starving as the result of non-payment of the salaries for months past. I shall formulate my recommendations within the next 2 or 3 days37 but it looks to me now as if the only two possible [Page 361] alternatives were, (1) a small loan to make possible the payment of arrears in salaries, or, (2) our consent and the consent of the American bankers to a limited moratorium on the service of the foreign debt.
Conditions this morning have improved very materially. The Army appears completely loyal to the new Government and the situation in all of the larger cities including Habana very well under control.
Thank you again for your message.