611.3731/192
The Ambassador in Cuba (Crowder) to
the Secretary of State
Habana, May 7,
1926.
[Received May 11.]
No. 1416
Sir: I have the honor to acknowledge the
Department’s instruction No. 692 of April 30, 1926, in relation to the
desire of the Cuban Government to enter into negotiation for the
modification of the Reciprocity Treaty between the two countries. The
Department states that careful consideration is being given to the
subject in consultation with the Department of Commerce and the Tariff
Commission and desires me, pending further instructions, to refrain from
an expression of opinion whether the question of revision of the Treaty
should be opened.
[Page 13]
It is true that I have listened during the past year to the observations
of the President and Foreign Office in regard to the necessity of a
revision of the Reciprocity Treaty, at the same time desisting from
expressing my own views on the subject. From these conversations, as
heretofore stated, it is the evident wish of the Cuban Government to
obtain modification of the Treaty in such manner as to permit of the
adjustment of the preferential in favor of both countries. I of course
understand the Department’s desire that pending a decision in the matter
the subject should not be discussed and I shall carefully observe the
request. Nevertheless, while refraining from comment on the question to
officials and others in Cuba I feel it my duty to bring certain
subsequent developments to the Department’s attention in order that all
the facts may be available for consideration.
On May 5th a meeting of the Cabinet was held at which it was decided that
inquiry should be made of the Government of the United States whether it
is disposed to open negotiations with the Government of Cuba for the
modification of the Treaty under reference. It was also agreed that
information should be furnished the Cuban Secretary of State concerning
the modifications which it is deemed essential to introduce.
Pursuant to the sense of the meeting of the Cabinet the Secretary of
State of Cuba on the same date addressed to me a note, copies and
translation of which are enclosed, in which, after reviewing the
relations between the two countries so far as they are affected by the
Reciprocity Treaty at present in force, I am requested to inquire of my
Government whether it would be agreeable to it to open negotiations
directed towards revision of the Treaty. I have acknowledged the note
without other comment than that it is being referred to my Government
for consideration and that when I am informed of the Department’s
decision in the matter I shall again communicate with the Foreign
Office.
Meanwhile it is advisable to refer once more to the deep seated feeling
prevailing in Cuba that changing conditions have rendered the
Reciprocity Treaty incompatible with present needs and to the
enthusiastic public response to the President’s statements on the
subject. This impression is borne out by speeches in Congress and by the
almost uniform opinion expressed in the principal journalistic organs of
the country looking towards revision of the present agreement. If
further proof were needed that the nation attaches fundamental
importance to the conduct of the proposed negotiations and is prepared
to support the Administration in its efforts to that end, it may be
found in a Resolution, of which a copy and translation are
[Page 14]
attached hereto,7 presented to the Senate on May
3rd by Clemente Vazquez Bello, President of the Senate. The document is
a strong one enunciating the complete concord of the Senate with the
President’s intention and assuring the President in advance that any
modifications to the Treaty which he may see fit to effect will be
ratified by that body. The Resolution has not yet been acted on due to
lack of a quorum but there is every reason to believe that it will be
promptly passed. The reaction of the House of Representatives to the
Senate’s action is exemplified in the attached report from El Sol of May 6th7 of interviews with House leaders.
I submit the above data that the Department may appreciate how vitally
the issue is here regarded and that in considering whether negotiations
may profitably be opened it may weigh the profoundly unfavorable effect,
both political and commercial, which an adverse decision would be likely
to induce in view of the firm conviction in Cuba that the peculiarly
intimate relations of the two countries, with their attendant
responsibilities, dictate a frank discussion of the alleged deficiencies
in the Reciprocity Treaty.
I have [etc.]
[Enclosure—Translation]
The Cuban Secretary of State (Céspedes) to the American Ambassador (Crowder)
Mr. Ambassador: I have the honor to address
Your Excellency today with the purpose of bringing up a matter of
very much interest for both our countries, which has been repeated
many times by us during our conversations as a problem which at the
proper time it would be convenient to discuss with a cordial spirit
of cooperation between the two Governments.
I refer to the commercial relations between Cuba and the United
States, which, having always been intensive and important, it is
sure will at all times be worthy of the most friendly and solicitous
attention of the high interested parties to conserve them with the
same character with which they were established by the Treaty of
Commercial Reciprocity ratified in 1904 [sic]
and since then in force between our two countries.
The Government of Your Excellency acknowledged in official
correspondence during the year 19118 that the
conditions existing at the time the Treaty was concerted had already
changed and that it was then willing to comply with the request of
the Cuban Government
[Page 15]
of
negotiating a new convention of commercial reciprocity for the
purpose of adjusting the original Treaty to the conditions which had
arisen after the year 1904.
Had it not been for the profound disturbance created by the world war
in the economic situation of almost all the nations, also producing
in the United States and in Cuba very abnormal conditions during
said contest and after its termination which have subsisted in a
great part to the present moment, it is logical to suppose that
before the present time we would have reached the stage of
negotiation between our two Governments and due to reasons
substantially the same, to a revision of the aforementioned Treaty
in order to more effectively adapt it to the ends and principles
expressed in its preamble.
But even disregarding those exceptional circumstances, the period of
twenty-two years which has elapsed since the Treaty was put into
effect has been of itself long enough to have caused, as really has
happened, economic changes of great importance in both nations which
it was not possible to foresee when said Treaty was concerted. The
transcendental magnitude of these changes which reflected in the
volume and character of commerce between the two nations, in the
growing investments of American capital in Cuba, in the
establishment of a great number of industrial enterprises, banking
and commercial enterprises of the United States in our Republic, is
well known to Your Excellency, as well as in many other acts which
have taken place after the Treaty was in force.
In the opinion of my Government the vital changes which have taken
place in that long period of time in the economic life of Cuba, in
that of the United States, in the situation of the sugar industry
and in world commerce, as well as in the Customs Tariffs of the
United States have had the effect in practice to modify both in the
United States as well as in Cuba the results brought about by our
Treaty of Commercial Reciprocity during the first few years of its
enforcement.
The Government of Cuba has tried to form, without prejudice and
without partiality, an opinion with regard to the advantages which
are derived at the present time by each of the two countries, to the
said Treaty, and has noted with interest that there has already been
undertaken by the Tariff Commission of the United States, as it has
stated in its last report, a complete study of the influence which
said Treaty has exercised during the whole life thereof upon the
development of commerce between both nations. The time seems
propitious, therefore, to reach important conclusions in this
connection from the study made by both interested parties.
[Page 16]
On the other hand, and to add to the reasons for the examination of
these matters, the Government of Cuba, as Your Excellency is aware,
is carrying on at the present time a revision of its Customs Tariffs
which are acknowledged to be inadequate for its economic life, and
has under consideration measures to improve its commercial relations
with several foreign nations in order that its products be afforded
the just and equitable treatment which they are entitled to in the
markets of the world. Of not less importance is the action which the
Cuban Government is now developing, in conformity with the sugar
interests of the Nation, to cooperate, through legislative and
administrative measures, towards the avoidance of the overproduction
of sugar which temporarily exists, and to place a part of the
agricultural activities of the nation in line with more remunerative
products than sugar-cane is at the present time. In addition
thereto, we are about to commence the magnificent task of furnishing
the Republic with a Central Highway and a secondary net-work of
roads which will powerfully contribute to the reality of the
diversification of crops and of the economic wealth of the nation,
allowing other sources of wealth as advantageous as sugar-cane to
arise and perhaps subject to more limited risks and chances.
Moved by these high purposes, and by other not less beneficial
results for the progress of the nation, my Government could not
possibly omit from its well studied program of economic
reconstruction, as fundamental an aspect of the same as the
improvement and intensification of the commercial relations with the
United States of America which constitutes at all times, but with a
greater reason at the present time, a desire of the people and
Government of Cuba.
It is not the intention of my Government to pretend that Cuba shall
obtain from the United States benefits or favors of a commercial
nature which Cuba shall not duly compensate through concessions of
an equivalent value, nor preferences of such a nature as to result
incompatible with the policy of an adequate protection by the United
States of its own industry. My Government understands that the
Government of Your Excellency, on its part, likewise desires that
there be no injustice or lack of equity for either of the two
nations in the operation of the Treaty.
By reason of what I have stated I pray Your Excellency to enquire of
your Government whether it is disposed to open negotiations with the
Government of Cuba for the modification of the present Reciprocity
Treaty in order to assure to both countries greater facilities and
advantages in their commercial interchange, thus strengthening and
tightening the important relations which so fortunately bind
them.
I take [etc.]
Carlos Manuel de
Céspedes
