The herald., 1898-10-19
SPANISH ADROITNfSS
MAKES NO HEADWAY AGAINST
YANKEE oBsTINACY
CUBAN DEBT WILL NOT BE PAID

Which Mournful Fact the Spanish
Commissioners Have Probably
Learned by This Time
Associated Press Special Wire.
WASHINGTON, Oct. ls.-It is hoped
though hardly expected by the officials here
that yesterdays proceedings before thu
Peace Commission at Paris marked the higl
tide of Spanish opposition and that from
now on the Spanish Commissioners vii! re
tire gradually from their extreme position
1t is recognized that their attack on thu
American position WAS marked by thu
greatest cleverness and adroitness. The opin
ion prevails that the animating purpose o
the Spaniardg is to work upon the sympa
thies of other European nations while ap
pealing TO the interests, not only of tn
holders Of Cuban bonds, but also to tn,
holders Of purely Spanish. securities, whicl
would be affected by sympathy. The Span
ish argument directed to showing that tn
United States must assume sovereignty
else the islands would be left without lega
status, is interpreted as being a distinct biz
for the Intervention of the foreign bond
holders. The latter, according to the Span
ish hope, might be expected to call upor
their own governments to aid the Spanist
cause by protesting to the United State,
against the large values represented by tn,
Cuban bonds owned by their own citizens
Considerations based upon equities ik,
these have at times had great weight witt
international tribunals, but back of it al
is apparent, in the eye of the officials here
a purpose to influence not so much the
American Peace Commissioners as the gov
ernment at Washington directly.
There has never been any question here
as to the status of municipal and other loca
obligations based upon Cuban assets. Al
the proceeds of bonds issued by municipal
tiles have presumably gone to benefit the
localities, it has never been contended here
for an instant that these obligations should
be repudiated. Whatever may be the out
come of the negotiations at Paris relative
to the general debt of Cuba, the bonds o
the, municipalities and such securities viii
retain their validity. The proposition al
legged to have been made yesterday by the
Spanish commissioners, to surrender to thu
United States the entire Philippine groul
rather than that Spain should be held re
spoesible for the Cuban debt, did not tax,
the officials here by surprise. 1t was rec
ognized Immediately as only another phas,
Of Spanish effort to connect the Philippines
The American commissioners at the be
ginning refused to permit any such asso
citation, holding that each subject treated
in the protocol must be dealt with sepa
rately, and in order and so far as the Stat,
Department knows, they have not changed
their views in this matter since.
While it is realized in official circles tina,
the negotiations in Paris have reached what
probably will be the most critical point t.
L -. = r
to face with the question as to what dis
position shall be made of the Philippin,
Islands, there is an abiding confidence tha
the Spanish commissioners will not obligt
the Americans to resort to extreme meas
ures and that the negotiations will pro
coed with greater expedition from thil
point.
Gaulois' Review
PARIS, Oct. l8.-The Gaulois reviews yes
terday's session Of the joint Peace Commis
differences in the language spoken by tn
commissioners adds: "But according to tn
Spaniards the main cause of the difficult,
encountered in the negotiations is the lac1
Of conciliation in the attitude of the Ameri
can commission. 1t is known in regard t.
Porto Rico and Cuba That the articles of tn,
protocol are absolutely positive-Spain con
cedes Porto Rico to the United States ant
relinquishes and abandons sovereignty ovel
Cuba. These two points are definitely set
tied and are not open to discussion. Be
sides the Spaniards make it point of honol
to scrupulously abide by their engagement
towards their conquerors.
"The question Of the Cuban debt remains
Upon which power should the onerous OBJ
legation of guaranteeing the debt rest
Here is where the two commissions diffel
in their views and neither is inclined t,
yield. The Spaniards agree on the follow
ing gg,lip, lines; ;.
implied, it assumes all obligations previousl,
OF such territory. 1t is international law
sanctioned by usage and which always hal
been complied with. Thus, when Franc,
annexed Savoy. she assumed all the debt
contracted by the latter while still an Ital
ian province.
Lastly, they remind their opponents tha
Cuba is virtually the key Of the Gulf O
Mexico, strategic position OF the first or
der to the United States and an immens,
advantage, which calls for some sacrific,
upon the part of the Americans.
10 this the latter replied at first tina
they could not listen to any discussion O
the matter of the debt, being under forma
instructions from their government. Bu
on the Spanish commission insisting ant
in the presence of it's very firm attitude
not that they entertain the intention O
yielding to Spain's injunction, they con
tinue to argue against the Spanish position
These arguments may be briefly summed
up as follows:
"The Americans insist upon the fact tha
the money raised by the Cuban loans wa
not applied. to the requirements or inter
ests OF the island, but was chiefly borrowed
to the end of improving the financial con
dition of Spain and to procure funds which
she could no longer raise in the peninsula
and which debt therefore is personal tx
Spain.
"On. the other hand, the Americans say
that America has no intention of annex
ing. Cuba and therefore could not assum,
such obligations.
FINALLY it is held that owing to the fab
ulous cost OF the late war the American peo
assume such obligations"
There is enough fact in the statement o.
etauiois to give it significance, especially a,
it came from Spanish sources. Taken ir
with the special pleading in tn,
editorials of the Paris papers this evening
1t affords fair view of the interest existins
here in behalf Of Spain.
La Liberte, referring to the Cuban deb
"as now dividing the two countries" says
The Spanish regard the United States tc
assume the Cuban debt as an exaggerated
In one sentence La Liberte declares tina,
Spanish finances were ruined in trying te
suppress the Cuban insurrection" and in thu
next it says "the debt was contracted for the
benefit of Cuba"
Then it points to Spain as pleading for ar
bitration where the commissions do moi
agree, and says:
1.-The Washington cabinet will not listen te
ANYTHING We have already pointod o,,i