File No. 837.61351/141

The Minister in Cuba ( Gonzales) to the Secretary of State

[Telegram]

This afternoon a newspaper states that Mr. Morgan has promised unofficially that price of next sugar crop would exceed that fixed for present crop.

To official of the Department I suggested three weeks ago that, if there is to be advance in price of next crop, immediate announcement of fact be made if it is desired to stimulate production.

There is no enthusiasm among actual growers of cane over present prices and my information is no increase acreage or betterments in cultivation are contemplated; our Army Intelligence here believes next crop will be smaller. After June stimulating prices can not increase production.

If desired that fact of increased price for next crop be given publicity, I regret [request] early information.

Gonzales