File No. 837.51/292

The Minister in Cuba ( Gonzales) to the Secretary of State

No. 581

Sir: I have the honor to report that on returning to Cuba in the first week of last September, I asked President Menocal for a statement of expenses of the Republic of Cuba on account of the war, explaining that both the Department of State and the Secretary of the Treasury of the United States were desirous of furthering a loan to Cuba, and hoped to find means to overcome legal obstacles that had arisen.

President Menocal stated that all this data had been taken to Washington by Doctor Patterson, the Subsecretary of State, but he would have it prepared. The President then left Habana for a period of two and a half weeks, and early in January I again asked him for the statement. He urged General Marti to hasten the preparation of his part of it.

Two weeks ago the President was taken ill and has now gone to his country place, El Chico, to recuperate, but he has sent General Marti to me with a statement of expenditures, actual and proposed, on account of the war. I am enclosing in duplicate the translations.

President Menocal asks for the loan of $15,000,000.

Cuban naval vessels are doing patrol duty on the Cuban coasts, and to that extent, the American Naval officer, representing Admiral Anderson here, informs me, relieving the American Navy of such duty.

I have [etc.]

William E. Gonzales
[Enclosure—Translation]

Army

Budget increase by reason of reorganization under decree No. 600 1917 $5,579,420.67
Increase in personnel of surgeons, veterinary, and Signal Corps, according to plan of reorganization 181,488.00
Cost of war supplies which the present Secretary of War and Navy has requested of the Washington Government 282,618.00
Cost of telegraph material for the Department of Posts and Telegraphs, which the present Secretary of War and Navy requested of the American Government on his recent visit to Washington 248,865.00
Cost of repair of works of defense of the City of Habana 280,000.00
Cost of artillery and emplacement thereof 54,970.00
Cost of ammunition for the artillery of the defense of Habana 2,816,280.00
Purchase of 50 machine guns and equipment therefor 48,300.00
Extraordinary expenses for the purchase of cattle, and supplies of all kinds, for replacement of those destroyed and lost during the late uprising, and for the purchase of trappings and equipment for increased mounted forces 1,518,073.62
Cost of supplies for Signal and Aviation Corps 100,000.00
Estimated cost of building new quarters, hospitals, and infirmaries of the Army, and repair of existing ones 4,000,000.00
Total $15,110,015.29
[Page 319]

Navy

Budget increased by reason of reorganization under decree No. 1427 of 1917 $337,644.00
Repairs to schoolship Patria and gunboat Baire to date 183,639.62
Cost of war supplies requested by Secretary of War and Navy, including radiotelegraph apparatus 469,679.96
Sixteen submarine chasers 1,600,000.00
Personnel and supplies for submarine chasers 316,160.00
Installation for radiotelegraph stations, buildings, etc 227,618.45
Total $3,134,742.03

Additional Cost

Increased police force $730,325.92
Cost of increased harbor police 24,500.00

One million dollars has already been advanced to the Cuba Railroad, and an additional $2,000,000 will be loaned to that Company, making a total of $3,000,000.

An advance has been made to the Cuban Eastern Railway Company of $93,000.

Recapitulation

Army $15,110,015.29
Navy 3,134,742.03
Police and harbor police 754,825.92
Cuba Railroad 3,000,000.00
Cuba Eastern Railroad 93,000.00
Total $22,092,583.24