611.3731/876: Telegram
The Secretary of State to the Ambassador in Cuba (Caffery)
135. Your telegram 380, August 10, noon. Under no condition will the exception of edible fats and oils from the prohibition against quotas be acceptable to this Government.
[Page 163]As regards the exception of cigarettes from the same prohibition, the Department hopes that you will be able to persuade the Cuban authorities that such exception is unnecessary. There would appear to be no real ground for a belief that the Cuban market for cigarettes will be over-run with the American product if the Cuban delegates agree to the $3.00 United States rate suggested. Our proposal will operate to divert an illicit trade to legal channels, since it is a wellknown fact that American cigarettes may now be secured in Cuba at a price of around 25 cents a package. As stated in previous instructions, the Department is prepared to accept a somewhat higher rate if necessary to reach a final agreement.
If the Cuban authorities insist upon some quantitative restriction, you should reach an understanding to the effect that any quota that may be imposed will be on a reasonable basis inasmuch as it is realized that no figures for actual consumption of American cigarettes are obtainable.
With regard to the Cuban counter-proposals mentioned in paragraph 2 of your telegram, the concessions which we proposed were not for bargaining purposes, since they represent the maximum to which this Government can agree.