837.51/486: Telegram
The Representative on Special Mission in Cuba (Crowder) to the Secretary of State
[Received 5:28 p.m.]
72. Replying to your June 1, 1 [5] p.m. Zayas appears to be proceeding aggressively to bring about drastic economies hoping in this way to avoid a loan. He might and probably would relax his efforts in this regard if he thought a loan was obtainable. In any event I recommend that the Cuban Government be not approached on this matter until the dependable statement of the national finances which Zayas hopes to have completed by June 10th demonstrates the imperative necessity for a loan.
It may turn out as liquidation advances that a national loan such as proposed in parts IV, V and VI of the Rathbone plan,30 available in hands of superior liquidating commission or other specially constituted body for rediscount or purchase of long-term securities in the hands of both solvent and insolvent banks, may be most advisable, the proceeds of such loan to be administered as a revolving fund, loan to amortize itself as suggested by Rathbone. Will keep Department advised.