THE CUBAN DEBT.

Hawke's Bay Herald, Volume XXXIII, Issue 11097, 14 December 1898, Page 2

THE CUBAN DEBT.

A cable message in yesterday's issue stated that the Cuban debt will form tire subject of negotiation in connection with the formation of the government which the United States propose to establish there. This must be read with a former message which announced that the United States Peace Commissioners had been instructed not to accept the sovereignty of Cuba. On the other hand the Spaniards insisted on that as one of the terms of peace. This curious attitude of the two parties is easily explained, The Spaniards knew' that they had lost Cuba, whether it was annexed by the States or it received its independence. But the Spanish have raised large loans secured on the Cuban revenue. This money has in part been expended in public works, but quite nine-tenths has gone in militnry operations. If Cuba is declared independent that debt -will inevitably be repudiated) as the people will naturally refuse to pay for loans contracted to punish them for desiring independence. The foreign creditor will then look to Spain as the responsible party) but Spain will have lost the Cuhan revenue out of which interest on these loans is paid. That will mean a very heavy addition to the already crushing taxation of Spain, and would materially aid the Carlist cause and assist revolution. But if the States accept the sovereignty of Cuba they would, by precedent, become responsible for the Cuban debt. That they desire to avoid. It is not, therefore, proposed to annex Cuba to the States. There is another reason why the States do not desire formal annexation, and that is that it would involve the creation of Cuba into a State of the Union> with representation in Congress in proportion to the population. So it is proposed to declare a protectorate, enforced by occupation, which will secure all the advantages of annexation without the disadvantages. Nominally this protectorate will last only until the Cubans, are capable of self-govern-ment. But we fancy that the good folk of the States will never discovei that that time has arrived. Great Britain has set them an example in Egypt.