CONDITIONS IN CUBA

Rotorua Morning Post, Volume 3, Issue 726, 29 December 1933, Page 5

CONDITIONS IN CUBA

(Press Assn.-

long anticipated default of island's external debt VERY SERIOUS POSITION

— By Telegraph — Copyright).

(Rec. Dec. 28) Havana, Dec. 27The long-anticipated default of Cuiba's enormous external delbit appeared imminent to-day as the treasury. secretary announced unofficially that the 3,900,000 dollars owed to vAmerican hondholders on Monday would not he paid. The money had been used for back pay owed to Government workers. It is contended that such contracts made by the former President, General Machado are illegal. It is intimated that the provisional President, Senor Grau San Martin, will soon proclaim an official moratorium on interest. Th'e service charges due include 40,000,000 dollars on publc works bonds, and 20,000,000 dollars on ■short terrn notes. Both were floated through the Chase National Bank in New York. , Meanwhile the internal economic condition is becoming increasingly worse. The continued labour agitation and the Government confiscation of many sugar mills have brought the island's' chief industry to a virtual standstill. Fully 100,000 sugar workers are said to be in danger of starvation unless the industry is revived. The anti-American spirit is becoming inten'sified with the iboycott of American goods declared in several cities in retaliation for W.ashington's non-recognition of Cuba's new regime and policy-