Evening star., 1933-12-27
GRAU SAYS CUBA
W|LLPAYBUT TENTH
OF 2O-M|L.L|ON DEBT
Attacks Validity of Chase
Bonds Because Machado
Contracted Them. II
- ~
REPUTATION DENIED ~
By TREASURY HEAD
Declares Payment Suspended Pend
ing Discussion With Bank
Officials. sn,G&
BY the Associated Press.

BY the Associated Press.
HAVANA, December 27.-The Cuban
government made it clear today that it
has no intention of paying out more
than 100000 on certificates due
Monoay on S1o,o0o,oO bond issue
originally sponsored by the Chase Ma
tional Bank.
told the bank the debt was .'iIIegitimate
because 1t was contracted by the de-
posed President Gerardo Machado.
Later in the day, Manuel Despaigne
minister of the treasury, declared:
We are not repudiating the debt we
are merely suspending payment until
the whole situation can be discussed
thoroughly with the offlcials Of the
Chase Bank in order to determine
which part. if any. of the debt is legal
We cannot pay these debts. the
product of Machado's misadministra-
ton, without suspending legitimate
payments. including employees salaries
and the Speyer and Morgan loans"
The total due Chase December 81
amounts TO $2,663,000. Also due at
the same time is $2.055 900 interest and
arrears on treasury obligation
Il believe the United States attitude. -
said President Grau. will be reason
able. since the suspension does not
mean the reputation of the debts.
The Cuban courts always are open
to any Just claims. Those debts were
contracted without the approval of the
Cuban people, and ii we paid we would
betray the people as did Machado. but,
at all costs, Cuban credit will be main
tanned"
Debts Called Legitimate.
Grau told the banks local manager
that the debts we're "illegitimate as
Chase dealt with Machado Cdeposed for
mer PresidenD without the consent Of
the Cuban people"
This government" he added, "can-
not pay its public works debts unless
their legitimacy can be properly estab-
lished."
American business houses became the
target of a boycott move in Havana
today.
Handbills urging the public to pledge
itself not to buy American goods were
distributed throughout the entire city.
The sponsors of the movement, how
ever. were not revealed
Three small petards exploded in Ha-
vana during the night-one in the gar
dens of the National Hotel, in which
Jefferson Catfrey, the United States
representative here. resides. No dam
age was done.
A tense situation was reported at
Neuvitas, in CamSguey Province. with
the populace aroused in protest against
the actions of soldiers who allegedly
employed rough methods in clearing the
streets after a number Of bomb ex-
plosions.
Strike Is Called.
Demanding replacement of the &C
cused officers and soldiers stationed in
Nuevitas, a general 48hour strike was
called for today.
Official comment was withheld on re-
ports that a Spanish cruiser had been
ordered to proceed here to protect
Spanish interests, If necessary.
The report aroused wide discussion,
however. coming, as it did, on other
reports of Spanish government consid-
Grafton of the position of its nationals
in Cuba as result of recent outbreaks
growing out of demonstrations for and
against the new law requiring that so
per cent of the employees of all firms be
natives.