Headquarters Department of Cuba,

HAVANA, May 20, 1902.

To the President and Congress of the Republic of Cuba.

Sirs: Under the direction of the President of the United States, I now transfer to you as the duly elected representative of the people of Cuba the government and control of the Island; to be held and exercised by you, under the provisions of the Constitution of the Republic of Cuba heretofore adopted by the Constitutional Convention and this day promulgated; and I hereby declare the occupation of Cuba by the United States and the Military Government of the Island to be ended.

This transfer of government and control is upon the express condition, and the Government of the United States will understand, that by the acceptance thereof you do now, pursuant to the provisions of the said Constitution, assume and undertake, all and several, the obligations assumed by the United States with respect to Cuba, by the treaty between the United States of America and Her Majesty the Queen Regent of Spain, signed at Paris on the 10th day of December, 1898.

All money obligations of the Military Government down to this date have been paid as far as practicable. The public civil funds derived from the revenues of Cuba transferred to you this day, amounting to $689,191.02, are transferred subject to such claims and obligations properly payable out of the revenues of the Island as may remain. The sum of $100,000 has been reserved from the transfer of funds to defray anticipated expenses of accounting, reporting, and winding up the affairs of the Military Government, after which any unexpended balance of said sum will be paid into the Treasury of the Island.

The plans already devised for the sanitation of the cities of the Island and to prevent a recurrence of epidemic and infectious diseases, to which the Government of the United States understands that the provision of the Constitution contained in the fifth article of the appendix applies, are as follows:

1. A plan for the paving and sewering of the City of Havana

for which a contract has been awarded by the municipality of that city to McGivney, Rokeby & Co.

2. A plan for waterworks to supply the City of Santiago de Cuba, prepared by Capt. S. D. Rockenbach, in charge of the District of Santiago, and approved by the Military Governor, providing for taking water from the wells of San Juan Canyon and pumping the same to reservoirs located on the heights to the east of the city.

3. A plan for the sewering of the City of Santiago de Cuba, a contract for which was awarded to Michael J. Dady & Co. by the Military Governor of Cuba, and now under construction.

4. The rules and regulations established by the President of the United States on the 17th of January, 1899, for the maintenance of quarantine against epidemic diseases at the ports of Havana, Matanzas, Cienfuegos, and Santiago de Cuba, and thereafter at the other ports of the Island, as extended and amended and made applicable to future conditions by the order of the Military Governor, published in the Official Gazette of Havana on day of April, 1902.

dated

the

5. The sanitary rules and regulations in force in the City of Havana (and in any other city having official rules, etc.).

(a) It is understood by the United States that the present government of the Isle of Pines will continue as a de facto government, pending the settlement of the title to said island by treaty pursuant to the Cuban Constitution and the Act of Congress of the United States approved March 2, 1902.

(b) I am further charged by the President of the United States to deliver to you the letter which I now hand you.

LEONARD WOOD, Military Governor.

To this and to its accompanying communications, Presi

dent Palma replied as follows:

Honorable General Leonard Wood.

HAVANA, May 20, 1902.

Sir: As President of the Republic of Cuba, I hereby receive the government of the Island of Cuba which you transfer to me in compliance with orders communicated to you by the President of the

United States, and take note that by this act the military occupation of Cuba ceases.

Upon accepting this transfer I declare that the Government of the Republic assumes, as provided for in the Constitution, each and every one of the obligations concerning Cuba imposed upon the United States by virtue of the treaty entered into on the 10th of December, 1898, between the United States and Her Majesty the Queen Regent of Spain.

I understand that, as far as possible, all pecuniary responsibilities contracted by the Military Government up to this date have been paid; that $100,000, or such portion thereof as may be necessary, has been set aside to cover the expenses that may be occasioned by the liquidation and finishing up the obligations contracted by said government; and that there has been transferred to the Government of the Republic the sum of $689,191.02, which constitutes the cash balance existing to-day in favor of the State.

In the belief that Article V of the amendment to the Constitution is applicable to the matter, the Government will take pains to facilitate the execution of the works of sanitation projected by the Military Government; furthermore, it will procure, in so far as depends upon the same and corresponds thereto in the sanitary measures for the necessities of both countries, the observance of the system implanted by the Military Government of Cuba.

It is understood that the Isle of Pines is to continue de facto under the jurisdiction of the Government of the Republic of Cuba, subject to such treaty as may be entered into between the Government of the United States and that of the Cuban Republic, as provided for in the Cuban Constitution and in the act passed by the Congress of the United States and approved on the 2d of March, 1901.

I receive with sincere gratification the letters which President Roosevelt addresses to the Congress of the Republic of Cuba and to me, for the sentiments of friendship for the people of Cuba which inspire them.

I take this solemn occasion, which marks the fulfilment of the honored promise of the Government and people of the United

States in regard to the Island of Cuba, and in which our country is made a ruling nation, to express to you, the worthy representative of that grand people, the immense gratitude which the people of Cuba feel toward the American nation, toward its illustrious President, Theodore Roosevelt, and toward you for the efforts you have put forth for the successful accomplishment of such a precious ideal.

T. ESTRADA Palma.

This completed the formal ceremony and was immediately followed by the hauling down of the American flag and the substitution of the flag of Cuba in its stead. The exchange of flags was effected at all points where the American banner had waved as a national emblem, and was attended by the most enthusiastic demonstrations. This was notably the case in the hoisting of the Cuban flag over Morro Castle at the entrance to the harbor of Havana. Not even the hoisting of the Palace flag had such deep significance to the Cuban mind as the elevation of their own national emblem over that celebrated fortress. With the hoisting of the flag, everything that was noisy burst into demonstration. Whistles blew and cannon roared. Men shouted themselves hoarse and women shrieked their joy. Bombs and crackers added to the general din. This lasted for a quarter of an hour, but the pace was too hot to hold, and there came a reaction in the shape of still joyful but subdued sentimental feeling. The dense throng streamed away from the Palace, which had been for an hour the chief centre of interest, to renew its hilarious and noisy enthusiasm in every park and street in the city. Some followed the new officials as they attended the American officers to the wharf from which they immediately embarked. A large audience witnessed the departure and shouted cordial farewells.

Subject to the conditions imposed by the Platt Amendment, Cuba was Cuba Libre y Independiente. A new Republic was born, and the banner which was first displayed in the revolution of 1868, floated throughout the Island from Cape Antonio to Cape Maisi.

The new government was born out of sore trouble and distress, and there were many who predicted its speedy termination in failure. While this was in no way fairly warranted, there were attendant conditions which were far from encouraging. The industrial condition of the Island was deplorable, and the new government really started under a handicap of immediate insolvency. There were outstanding obligations, such as the pay of the Cuban army and the redemption of bonds issued during the revolution, which could only be met by a national loan.

The receipts and expenditures from Jan. 1, 1902, to May 20, 1902, are given as follows:*

* For fuller details see article on Revenues and Expenditures, Chapter XX.