Evening star. [volume] (Washington, D.C.) 1854-1972, 1903-02-21
IMPORTANT ACTION
Passage of Cuban National
Loan Bill.
COALING STA TIONS
AGREEMENT SIGNED BY PREsI-
DENT PALMA.
Both Are of Wide-Reaching Scope,
Both for the Island Government
and the United States.
COALING STATIONS
Written for The Evening Star.

Written for The Evening Star.
Two things of wide-reaching scope have
been done in Cuba within the last few days.
Their Importance has not been understood
fully in the United States. One was the
passage by the Cuban congress of the ma
tional loan bill, which will be a means of
testing the credit of the new republic. The
other was the signing by President Palma
of the agreement for naval coaling stations
for the United States.
1t had not been thought that this latter
agreement would be made by the Cuban
executive until reciprocity was settled. 1t
may be guessed that it will not be made
effective by the Cuban congress until reci-
procity is determined, but Minister Squiers,
with tact and infinite patience, has scored a
point in getting the agreement made, which
ultimately is sure to be sanctioned by the
congress. Cuba is keeping faith in carry
ing out the Platt amendment, whatever
may be said of the American Congress.
Until the text of the agreement regarding
the coaing stations at Guantanamo and
Bahia Honda Is made public the full import
of this action may not be grasped. But at
the time when the sthmian canal is coming
to a head, and following soon after the
questions raised by the Venezuelan en-
broglio, the American people are likely to
be satisfied with knowing that the United
States is getting substantially all 1t needs
of the intercontinental waterway.
Mutual Concessions.
Mutual concessions had to be made and
msapprehensions cleared away before Pres
ident Palma was able to sign the agree
ment for coaling stations without meeting
an opposition at home which would have
defeated his plans. He has had to feel his
way, and the consideration shown by Pres
ident Roosevelt has been of great aid. 1t Is
pretty well known that at the outset four
coaling stations were in mind, and naval
officers above all things had their hearts set
on Havana. There never has been a time
when 1t was possible for the United States
to secure Havana for that purpose without
doing by force. This has been recog-
nized in Washington as in Cuba and the
naval authorities have been compelled to
yield strategic advantages to reasons of po-
litical eXpediency. But they have done very
well In getting Bahia Honda and Guanta-
namo.
At one period there was pressure for
coaling station at Cienfuegos, on the south
coast. Mr. Estervez, the vice president of
Cuba, who comes from the province of
Santa Clara, in which Cienfuegos is 10
Gated, was strongly opposed to this conces-
sion, and his objections were convincing
enough to cause President Palma to ask the
United States to waive that port, which was
done. 1t was urged that the naval station
at Guantanamo was sufficient, not only for
the control of the Windward Passage, but
for the whole Of the shores of the Carib-
bean.
Minister Squiers, in pressing the negotia-
lions, at first had much difficulty in over
coming the suspicious of the Cubans that
coaling or naval stations would mean the
creation of American ports in Cuba, which
would grow to be commercial rivals of the
regular Cuban ports. When President
Palma called the members of the foreign
relations committees of both houses to-
gether to exchange views on the subject
several Of them raised this objection and
wanted assurances that there would be no
rival custom house. Presumably when the
text of the agreement is published it will
be shown that while the jurisdiction of the
United States in the territory which Is to
be leased to it for naval coaling stations Is
complete there is no danger of the Cuban
ports meeting with rivals.
The Sites Secured.
OF the advantage of Guantanamo, situated
as II is on the southeast coast of Cuba on
O magnificent bay, there can be no doubt no
better base of naval operations can be
found in the West Indies. Americans who
were there with Captain McCalla in the
first stages of the war with Spain will re-
member the bay and the hills and the little
railroad which runs from Caimanera back
to the sugar plantations.
Apparently little Is known in this country
about Bahia Honda. 1t lies forty to forty
five miles west Of Havana and is larger
than Mariel. which once was thought Of IN
connection with the coaling stations Mariel
already has was one objection to establish
Ing American Jurisdiction. 1t Is noted for
the rock asphalt which is shipped In large
quantities to the United States and 1t is
also used as a quarantine station for in
fected vessels coming from Europe or South
America.
Bahia Honda probably Is better for
naval uses. The name means deep water
and the bay Is larger than at Mariel. There
is hamlet on the coast, but II Is hardly
a town. and 1t is reached from the interior
by road which was built during the Amer
lean military occupation. AT present 1t has
no railway connection, though line is like
~ to be built. Bahia Honda will be useful
from It's proximity to the Yucatan Passage
and 1t is a complement to Key West and the
gulf ports, such as Mobile and New Or
leans.
The Cuban Loan.
The Cuban loan is something in itself, yet
naval stations will be an aid in floating this
new national debt.
The provision OF the loan, as reported
from Havana, are for the creation Of a
national debt of $35, 000090 The bonds are
TO be fioated at ninety and are to bear per
cent interest. At this figure the Cuban gov
eminent will receive 81 100000. 1t is not
likely to get more because the syndicates
or capitalists who are willing to bid are
likely to agree among themselves in adj
vance.
or the net amount received from the loan,
100000 Is to be devoted to the develop
ment of Cuban agriculture in accordance
with plans which were matured months
ago. 1t Is stated that another 81 600 600 is
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