File No. 837.51/302
The Secretary of the Treasury ( McAdoo) to the Secretary of State
Dear Mr. Secretary: The receipt is acknowledged of your letter of the 26th of March 1918.
Before the receipt of this letter and, relying upon a letter from the Third Assistant Secretary of State dated March 23, 1918, an advance was made on the morning of March 27, 1918, to the Cuban Government of $5,000,000 on its demand obligation secured by the pledge of $5,000,000 of the Series A Treasury Bonds of Cuba, authorized by the law of July 31, 1917. The Cuban Minister states that he expects during April 1918 to ask for a further advance of $5,000,000 on account of the credit established earlier in the month in favor of the Cuban Government, and I will be obliged, if, in the meantime, you will inform me whether because of any increase beyond the [Page 324] amount stipulated in the budget of the year 1917–18, or for any other reason, the Cuban Government is not authorized to incur further indebtedness to this Government or to receive any further advance from the credit above mentioned, established in its favor up to the amount of such credit, viz., $15,000,000.
The Treasury Department relies wholly on advices from the State Department as to the power of foreign governments to borrow money from the United States and as to the authority conferred upon representatives of such governments to execute obligations and to receive the amount of the loans and, accordingly, in view of your letter of March 26, no further advances will be made to the Cuban Government until the receipt of advices from the Department of State that it is satisfied that the balance of the credit established in its favor may be loaned to the Cuban Government. …
Cordially yours,