637.116/142
The Minister in Cuba (Long) to the Secretary of State
[Extract]
Habana, September 9,
1920.
[Received September 14.]
No. 393Sir:
. . . . . . . . . . . . . .
As reported in previous despatches of the Legation, the President
categorically promised to put into effect the decree which was
agreed upon on August 17th. General Agramonte was not in favor of
this, and threatened to resign if it were effected. The President,
nevertheless, stated his determination to publish the decree as
agreed upon even if it should result in General Agramonte’s
resignation.
Doctor Montoro wished to save General Agramonte, and proposed that
the matter should be settled by means of an inter-departmental order
which would not be published in the official gazette, and in a
quieter way would bring about the same result as the decree, but
would spare General Agramonte from any implication of having
received a bribe offered to him as reported in the Legation’s
despatch No. 362 of August 27th.81
. . . . . . . . . . . . . .
The order was published yesterday and was not in the form of an
inter-departmental order to spare General Agramonte’s feelings as
originally stated, but as a proclamation, and the sense of it has
been very materially changed. A copy of it taken from El Mundo of the 8th instant, and the English
translation of it published in the Havana Post of the same date, are enclosed herewith.
It will be noticed that the wording of this proclamation differs
considerably from the original text transmitted to the Department in
the Legation’s despatch No. 312 of August 3rd.81 Articles 2, 3, 5 and 6, are
materially different as they throw the entire burden of clearing the
docks on the American Rice Exporters.
The American rice exporters cannot assume the responsibility of
clearing this rice off the docks, as they would thereby admit the
validity of the Cuban consignees refused [refusal] to accept it. And by Article 6, if the rice is
not removed from the docks within the time specified, the decree
will be cancelled.
In view of these divergencies there would appear to be no alternative
except to insist with the President that he publish the original
decree, even though it might cause the resignation of General
Agramonte.
[Page 76]
The present
substitute appears to have been drawn up by the Secretary of the
Treasury, Doctor Cancio, with a view to render nugatory the original
decree the stipulations of which are circumvented.
The first article also stipulates that the decree will be in effect
only until January 1st. This is not sufficient time to induce the
Cuban consignees to accept the merchandise sent to them, and they
have thus far shown no more readiness to meet their obligations than
they showed three months ago. Doctor Montoro stated on September
4th, that the time limit of the decree could not be made longer
because the authorization under which it is issued is based on
certain war powers given to the President, and that these expire six
months after the exchange of ratifications of the Peace Treaty. He
explained that this time limit did not extend beyond January
1st.
Mr. White pointed out to him that the exchange of ratifications was
effected with Germany on March 8th, and, therefore, if it were based
only on that the time would expire in four days; but that the
President had informed him that he was calculating from the exchange
of ratifications of the Austrian treaty, and that although this
treaty has been signed and ratified by Cuba and the copies sent to
Paris, the exchange of ratifications, nevertheless, has not yet
taken place, and that there is still a six months period in which
the decree can run. Doctor Montoro then promised to change this date
when the order should be issued. When the proclamation was issued
the old date was left in. Doctor Montoro then stated that this was
done on account of the adverse comments which would be made by the
sugar interests, as rice is the staple article of food of the
laborers and the zafra is about to begin.
Doctor Montoro promised that the decree would be prolonged for the
requisite time. Mr. White pointed out to him that it would be much
better to have it done once for all rather than to make two decrees
of it. Mr. White added that the proclamation was very unsatisfactory
and the Legation would be obliged to protest against it as soon as
the full report on it should be received from the attorney of the
American rice exporters.
This matter will be taken up with the President, and a demand be made
that some practical solution be given immediately.
I have [etc.]
[Enclosure—Translation]
Executive Decree of September 6, 1920,
Regulating Importations of Rice83
Whereas, the Secretary of State has informed this presidency of
his desire that a formula be found that would quickly and
satisfactorily
[Page 77]
bring a
settlement of the conflict over the rice imported into Cuba, by
virtue of sales made by American exporters to local merchants
and others throughout the territory of the island, and on which
conflict the government of the United States has already acted
through its diplomatic representation in this island: and,
Whereas, the Cuban minister to Washington, in a cable dated
August 24, confirmed by letter of August 26, which cable and
letter were turned over to the Department of Agriculture,
Commerce and Labor, informed the Department of State that he had
expressly been called by the State Department of the United
States of America to discuss the rice question, and had been
informed of the desire of that Government to see a quick and
satisfactory settlement reached between the merchants
interested: and that measures be adopted by the Cuban Government
that would settle the controversy, which could by no means be
neglected; and further urged that a prompt answer be given, as
said Government thought it necessary to insist that measures
should be taken to secure the desired settlement agreed upon, or
that another be suggested that would protect the interests of
the American exporters involved in the affair; and,
Whereas, the cable of August 24 from the Cuban minister at
Washington stated that the American Department of State had
informed him in the interview that it did not want to impose an
unreasonable price on the Cuban consumer, but that owing to the
special circumstances of the case, a settlement of the affair
was urged, and that measures be taken by the Cuban government to
that effect; and,
Whereas, in a document approved by Dr. Lavedan, consulting
attorney for the American rice interests, it stated that there
is a rice stock at different ports of the island, and especially
Havana, that far exceeds the current needs of the population,
and that could not be consumed in any less than eight months,
the stock being over one million bags, and one of the causes of
the harbor and waterfront congestion;
Therefore, it is advisable to state that the Cuban government has
had no part in bringing about the situation, which is owing to
the fact that unsettled market conditions caused by the European
war, and the appearance of the first peace crops brought about
an excess of speculation between local importers and exporters
at different markets that has created such conflicts as that of
rice in other branches of the trade; and,
Whereas, the economical objections pointed out against this
resolution by the Secretary of Agriculture, Commerce and Labor
do not meet the circumstances of the unsettled market conditions
that we are still suffering from on account of the European
war:
[Page 78]
Therefore, by virtue of the above considerations, it is incumbent
on the President of the Republic to act in order to bring a
settlement of the controversy; and, acting under the authority
granted me by Article 2 of the Subsistence Law,
I resolve
- First: That from this day our Consuls and Consular Agents
will not vise documents in connection with rice shipments to
Cuba unless so authorized by cable from the Cuban
government, until January 1, 1921.
- Second: Record of rice consignments imported into Cuba to
date will be kept at the Department of Agriculture, Commerce
and Labor, so as to avoid profiteering in a food article
extensively consumed in Cuba, and that all such rice
consignments at present in stock at docks and bonded
warehouses of Havana, and ports throughout the island, shall
be removed by importers without any delay, once all due
custom obligations have been complied with.
- Third: That at said warehouses and others that may be
bonded under the responsibility of customs collectors, there
shall always be sufficient space to receive and store from
150,000 to 200,000 bags of rice upon presentation of the
importation license until the date mentioned above, January
1, 1921.
- Fourth: That import licenses will be issued by the
Department of Agriculture, Commerce and Labor on the report
of the corresponding Collector of Customs that there is
sufficient bonded warehouse space to store the amount of
rice in question, either public or retained by the
importer.
- Fifth: In the case of failure to remove rice consignments
within the 30 days specified from the docks or bonded
warehouses, storage charges for the following ten days will
be double, with an additional charge of 25 per cent for
every following week of seven days of such delay.
- Sixth: Failure to remove rice consignments from docks and
warehouses within the time specified will lead to
cancellation of the measures of restriction upon
importation.
- Seventh: Licenses will be reported to the Secretaries of
State and Finance.
The Secretary of State will forward a copy of this resolution to
Consuls and Consular Agents, and the Secretary of Finance will
see that the measure is observed at Customs Departments.
Signed in the Presidential Palace, this 6th day of
September of 1920.
M. G. Menocal
,
President
E. Sanchez Agramonte
Secretary of Agriculture, Commerce and
Labor
