Messersmith, G.S., Havana. To Sumner Welles, Washington., 1940 November 07

2 copies. At dinner for Batista had little opportunity to speak with him alone; for first time he mentioned loan but only briefly; has had long talks on subject with [Domingo] Ramos, [José manuel] Cortina, and other important people; not one favors loan for purposes for which it was requested; even supporters of Government fear misuse of money loaned to Cuba without adequate safeguards; Cuban Government doesn't seem unduly concerned over its financial problems; current sälaries paid by diverting funds earmarked for other purposes; problem of Confederación de Trabajadores de Cuba pushed on to Congress; Batista wanted to keep campaign promise to grant legal status to CTC, but was finally convinced of the danger; is sure Congress will vote down the action; [Julio] Lobo back from Washington; reported Lobo engaged in get rich scheme with molasses; close friend of Prime Minister [Carlos] Saladrigas told Embassy officer members of Government displeased with activities of [Pedro] Martinez Fraga; they realize now he has been misinforming them, and he will likely be relieved of his post as Ambassador; [Amadeo] Lopez Castro said to be concentrating his efforts on assistance for Cuban agriculture; Batista reported to have offered Ministry of Finance to Oscar Garciá Montes but he is reluctant to accept; had dinner recently with Pepin Rivero; hopes he will use his influence to restrain Falange activities in Cuba; asked Rivero about "Tiempo", new daily paper in Havana; he said he was informed Senator Alfonso Pujol put up money and it was understood Martinez Fraga had put some money into venture; [José Manuel] Casanova called yesterday and reported campaign to renew Decree law 522; regrets renewal of 522 not secured before rump Congress expired, but Batista against renewal and still has to be convinced; Cosme de la Torriente made excellent speech at meeting at British Club held in his honor as President of Cuban-American Committee for Aid to the Allies; Committee doing excellent work.