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Apr. 28 (672)

May 6 (680)

From the Ambassador in Cuba

Additional memoranda, April 23 (excerpts printed), of conversations with various persons; intention to be guided by Department's instructions of April 24, telegram No. 61.

From the Chargé in Cuba

Restoration of constitutional guarantees in provinces of
Santa Clara and Camaguey.

56

56

59

May 13 (64)

To the Chargé in Cuba (tel.)

60

Information that Navy Department has received confidential telegram (text printed) reporting that revolution in Cuba is imminent.

May 14

From the Chargé in Cuba (tel.)

60

(90)

Opinion that Opposition, while growing in strength, is not prepared to start a revolution.

60

May 29 (712)

June 8 (722)

From the Ambassador in Cuba

Conversations with President Machado regarding political situation; opinion that in view of attitude of Opposition, Government should on its own initiative pass reform measures adequate to satisfy public opinion.

From the Ambassador in Cuba

Memorandum, June 1 (text printed), of conversation with President Machado, in which he announced his intention to carry out constitutional reforms.

62

June 24 (754)

From the Ambassador in Cuba

63

Supreme Court decision in case of Sr. Hevia, and interpretation by Opposition elements as extending privilege of writ of habeas corpus to all cases of unwarranted detention by both military and civil authorities.

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Expectation of further anti-Government activities as result of Supreme Court decisions refusing to declare present Government unconstitutional; President's announcement of his intention to govern with a Liberal-Popular coalition.

From the Ambassador in Cuba

64

July 31 (804)

66

Aug. 10

Memorandum, June 8 (excerpt printed), of conversation with the President regarding execution of reform program. From the Ambassador in Cuba

67

Aug.

Discovery of conspiracy to overthrow Government; information that President claims to have situation under control.

Ambassador Cuba

131 From the Ambos const int guarantees throughout Republic

Aug. 12 (115)

and other measures to control revolutionary movement.

68

From the Ambassador in Cuba (tel.)

69

Report that country is now under martial law and that rebels appear to be unsuccessful; whereabouts of alleged rebel leaders, Menocal and Mendieta, still uncertain.

Aug. 14 (118)

From the Ambassador in Cuba (tel.)

69

Opinion that while Opposition leaders are still at large situation remains serious.

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Aug. 15 (119)

From the Ambassador in Cuba (tel.)

70

Information that Menocal and Mendieta and their staff have been taken prisoner and are en route to Habana where they will be jailed.

Aug. 17 (120)

From the Ambassador in Cuba (tel.)

70

Information that Cuban officials are withdrawing note regarding arms embargo by United States.

Aug. 17 (121)

From the Ambassador in Cuba (tel.)

71

Information regarding limited military activities; President
Machado's intention to continue reform program.

Sept. 2 (840)

71

Sept. 9 (847)

From the Ambassador in Cuba

Conversation with President Machado regarding Cuban crisis, and proposal that he present reform program to the people through an address to representatives of various public organizations; President's feeling that he cannot make agreedupon announcement of his retirement from office in September 1932.

From the Ambassador in Cuba

75

Delivery of President's message regarding constitutional reforms to people and to Congress, substantially as agreed upon, except for elimination of reference to President's retirement.

77

Nov. 12 (930)

Nov. 13 (931)

Nov. 20 (937)

Dec. 24 (969)

Dec. 30 (973)

From the Chargé in Cuba

Indications of understanding between Government and
Opposition elements.

From the Chargé in Cuba

Efforts of Opposition members to obtain release from prison of leaders of August revolution, and interposition of Liberal politicians to persuade President against such a course.

From the Chargé in Cuba

Lack of progress in political rapprochement between Government and Opposition; favorable press reception of passage of bill creating Superior Electoral Tribunal; failure of Senate to expedite consideration of Constitutional Reform Bill.

From the Ambassador in Cuba

Announcement by President Machado of his determination to remain in office until the end of his term; review of political situation.

From the Ambassador in Cuba

Communication by Cuban Superior Court to lower courts on present conflict of jurisdiction between civil courts and military authorities, because of suspension of constitutional guarantees.

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591381-46-VOL. II-2

DOMINICAN REPUBLIC

FAILURE OF THE DOMINICAN GovernmeNT TO OBTAIN A LOAN IN THE UNITED

Date and

number

STATES

Subject

Page

1931 Jan. 26

Feb. 3

Feb. 9

Feb. 12

Feb. 12 (7)

Feb. 14 (14)

Memorandum by the Assistant Secretary of State

Interview with officials of the Dominican Financial Commission, who desire Department's authorization for negotiation of loan by the Dominican Republic; Department's objections to granting requested authorization, and suggestion that concrete proposal be submitted for Department's approval. Memorandum by the Assistant Secretary of State

Interview with Mr. Gann, legal counsel for the Dominican Republic, who presented proposal of J. G. White and Co. for $5,000,000 loan to the Dominican Republic.

From the Dominican Minister

Desire to know Department's decision regarding Dominican
Republic's request for authorization for $5,000,000 loan and
proposal of J. G. White and Co.

Memorandum by Mr. W. R. Scott of the Division of Latin Ameri-
can Affairs

Interview with Dominican Minister and Secretary of Lega-
tion, at which Department's objections to J. G. White pro-
posal were presented.

To the Minister in the Dominican Republic (tel.)

Instructions to inform President Trujillo regarding general principles formulated by Department as to Dominican financing and action taken on tentative proposal of J. G. White and Co.; request for information on report that President Trujillo has appointed financial adviser.

From the Minister in the Dominican Republic (tel.)

84

85

87

888

90

91

Mar. 5 (332)

Mar. 6 (9)

Mar. 9 (21)

Mar. 12 (14)

Information that the President has been informed of Department's views; also that he has not yet appointed a financial adviser.

From the Minister in the Dominican Republic

Reported interest of Lee, Higginson and Co. in floating a loan, and details of loan plan desired by Dominican Republic; proposal by Dominican Government for modification of point 4 of Department's general principles, regarding procedure for control of expenditures.

To the Minister in the Dominican Republic (tel.)

Summary of Dominican financial situation; willingness of Lee, Higginson and Co. to consider moderate short-term loan on fulfillment of certain conditions; information that Department will recommend Mr. William E. Dunn as financial adviser if the President desires such an official.

From the Minister in the Dominican Republic (tel.)

Acceptance by President Trujillo of Lee, Higginson proposal provided Department will agree to proposed modification of point 4 of Financial Principles; request for information regarding salary and other arrangements for Dunn as Financial Adviser.

To the Minister in the Dominican Republic (tel.)

Department's non-objection to requested modification of point 4; information that Dunn can sail from New York on March 19.

(Footnote: Dunn's arrival in Santo Domingo on March 24.)

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DOMINICAN REPUBLIC

FAILURE OF THE DOMINICAN GOVERNMENT TO OBTAIN A LOAN IN THE UNITED STATES-Continued

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From Lee, Higginson & Company

99

Résumé of financial negotiations with Dominican Republic and outline of suggested financial program, including future financing.

June 16

To Lee, Higginson & Company

104

Advice that letter of June 9 is receiving careful consideration, and request for information regarding refunding loan referred to in financial program.

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July 23

To Lee, Higginson & Company

Department's disinclination to undertake any increased responsibilities in finances of Dominican Republic; suggestions for modifying financial plan to eliminate participation by U. S. Government; request to be advised of any specific proposal made to Dominican Republic.

From Lee, Higginson & Company

Information that since both Department and Dunn have indicated unwillingness to agree to certain points in financial program, company has advised Dunn by cablegram (text printed) that they are not interested in proceeding further with loan plan, but will be glad to reopen discussions should the Dominican President later wish to reconsider program recommended.

108

SUSPENSION OF AMORTIZATION PAYMENTS ON THE EXTERNAL DEBT OF THE DOMINICAN REPUBLIC

1931 Aug. 25 (25788)

Sept. 3 (31)

Sept. 4 (55)

Sept. 5

From the President of the Dominican Republic to President
Hoover

Outline of financial difficulties and plan (text printed) to
meet domestic expenses and maintain foreign credit by means
of an exchange of bonds of foreign debt for new conversion
bonds to be issued in accordance with terms of Dominican-
American Convention of 1924; request for immediate U. S.
approval of plan as emergency measure.

To the Chargé in the Dominican Republic (tel.)

Opinion that there are insuperable objections to plan as stated. Instructions to urge delay in passage of law; also to urge sending of Mr. William E. Dunn, Financial Adviser, to Washington by plane for conference.

From the Chargé in the Dominican Republic (tel.)

Information that law was passed, but not promulgated by
President, who is returning it to Congress for amendment; that
Dunn will leave by plane September 6.

From President Hoover to the President of the Dominican Republic
Acknowledgment of President Trujillo's letter of August 25
and assurance of sympathetic and prompt consideration of
Dominican financial problems.

110

116

117

117

DOMINICAN REPUBLIC

SUSPENSION OF AMORTIZATION PAYMENTS ON THE EXTERNAL DEBT OF THE DoMINICAN REPUBLIC-Continued

Date and

number

1931

Subject

Page

Sept. 15 (59)

From the Chargé in the Dominican Republic (tel.)

118

Senate amendment of emergency law, in violation of Department's advice of September 3.

Sept. 17 (32)

To the Chargé in the Dominican Republic (tel.)

118

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Information that Senate amendment will probably be superseded by plan which Dunn is taking back to the Dominican Republic after discussion with Department and with legal counsel in New York.

Memorandum by the Assistant Secretary of State

Telephone conversation with Judge Schoenrich, counsel for Dominican Government, regarding Department's objections to proposed bond exchange plan and suggestion to withhold final action pending complete discussion.

From the Chargé in the Dominican Republic (tel.)

Information that Dunn consulted Legation, on behalf of President Trujillo, as to propriety of promulgation of emergency law passed by Congress and was told there was no objection to promulgation.

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From the Chargé in the Dominican Republic (tel.)

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Dunn's intention to recommend formal communication to fiscal agents stating inability of Dominican Republic to meet debt service deficit; opinion that emergency measure may be suspended pending outcome of proposed conversion negotiations.

From the Chargé in the Dominican Republic (tel.)

Dominican Government's notification to fiscal agents (text
printed) of inability to meet debt service deficit and suggesting
formation of bondholders committee for 1926 and 1922 bonds
to discuss terms of readjustment.

From the Minister in the Dominican Republic (tel.)
Announcement that Enabling Act was promulgated October
10.

From the Minister in the Dominican Republic (tel.)

Intention of Dominican Government to inquire whether National City Bank would obje: t to Dominican Government's asking Lee, Higginson and Co., fiscal agents, to step aside and allow National City Bank to carry out refunding plan.

To the Minister in the Dominican Republic (tel.)

118

119

120

120

121

121

122

Instructions to advise Department as to basis of Dunn's belief that first series of 1926 bonds have prior lien over second series, since Department's records and bank circular indicate equal rank.

Oct. 15 (74)

From the Minister in the Dominican Republic (tel.)

123

Basis for Dunn's belief regarding priority of first series of 1926 bonds over second series.

Oct. 16 (76)

From the Minister in the Dominican Republic (tel.)

123

Information that negative reply has been received from National City Bank to Dominican Government's request reported in telegram No. 72, October 14, and that Lee, Higginson and Co. also declined to act as requested.

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