Foreign Relations of the United States Diplomatic Papers, 1939, The American Republics, Volume V
837.51/2413
The Ambassador in Cuba (Wright) to the Secretary of State
[Received July 25.]
Sir: Confirmatory of my telegram No. 87 of July 24, 1 p.m., 1939,30 I have the honor to enclose a copy and translation of a note dated July 23rd which was handed to me yesterday (Sunday) by the Secretary of State.
A report of my conversation with him on certain points dealt with in the note will follow.
Respectfully yours,
The Cuban Secretary of State (Angel Campa) to the American Ambassador (Wright)
Mr. Ambassador: The Government of the Republic of Cuba has taken cognizance of your note No. 213, of July 20, which was delivered to me personally by Your Excellency yesterday morning.
The diverse and important matters examined in that note give it an especial interest which the Government of Cuba quickly appreciated, [Page 535] and it is its desire, in giving Your Excellency an immediate reply, to help to clarify those parts of the note which might indicate confusion or disparity in the points of view of both Governments due, perhaps, to incomplete information at the time it was drafted.
I. The Government of Cuba hastens to declare that the close and cordial cooperation indicated by Your Excellency as the desire of your Government has found and continues to find sincere reciprocity on the part of the Government of Cuba, which has not forgotten the days when the Cuban and American peoples together fought fraternally for the same ideal of liberty and justice. My Government recognizes and is thankful for the friendly cooperation which, at different times in the history of the Cuban people, has been generously given to it by the United States. And it is reason for satisfaction and pride to be able to declare that Cuba, on its part, has reciprocated under the influence of identical high sentiments, collaborating within its powers and together with the American people toward the triumph of high ideals of peace and justice. It would be impossible to forget at this time the singular cooperation which Cuba offered to the Government and the people of the United States during the difficult days of the World War, when it sacrificed legitimate profits on the altar of a democratic victory, or the no less constructive and loyal help in the pacific battles of Congresses and International Conferences—some of them as recent as those at Buenos Aires31 and Lima32—which the Republic has offered unconditionally to the noble continental aims of Your Excellency’s Government.
My Government observes in the first paragraph of the note to which I am replying the reference which Your Excellency makes to the new Treaty of Relations of May 29, 1934, through which the right of intervention of the United States in Cuban matters contained in the so-called Piatt Amendment was abrogated, and it is pleased to recognize that the free and voluntary agreement of the United States to this Convention constitutes the high and just reparation of what, from the first moment of its existence, was an undeserved limitation upon Cuban sovereignty, dictated in 1901 by the Military Government of Occupation.
My Government considers it convenient also to record that among the great historic proofs of Cuban-American friendship should be included the maintenance, by virtue of the free and sovereign will of the people of Cuba, of a very important provision of the now abrogated Piatt Amendment. I refer to the rental to the Government of the United States of the Naval Station at Guantanamo, the status of which has not been altered notwithstanding the new Treaty of Relations of 1934, because Cuba considers that in this manner it serves the cause of the defense of the United States of America, offering to [Page 536] Your Excellency’s people and Government the highest proof of friendship which it is given to an independent nation to offer.
II. As Your Excellency well points out, a logical projection of such cordial relations was the initiation in Washington, during the month of November, 1938, of the confidential conversations between high officials of our respective Governments which had as an object the study of a program of economic cooperation of the nature of those which subsequently were studied and placed in effect between the United States and other American Republics.
The program of economic cooperation examined in Washington had as a fundamental object the satisfactory solution of the portion of the suspended Public Works Debt still not liquidated—that debt having happily been settled in its greater portion in February 1938—and, immediately, the advancing of funds by the Export-Import Bank for the carrying but in Cuba of an extensive plan of public works.
It should be stated that the payment of the remaining public works obligations is considered, as was considered the payment of the bonds and other obligations of identical origin the service of which has been satisfactorily renewed, frankly unpopular, to the point that all the administrations which directed the affairs of the Republic between August, 1933 and December, 1936, on which date the Honorable Señor Dr. Federico Laredo Brú assumed the Presidency of the nation, refused to recognize them. Never, it may be roundly affirmed, did the Cuban Government in its relations with the United States assume and carry out an obligation of such onerous transcendency and within such an adverse economic situation; and that singular effort, the material and moral value of which has undoubtedly been evaluated by the Government of the United States, should also be taken into account, to demonstrate at least the decision of Cuba to cooperate in the plan examined with Your Excellency’s Government to promote the improvement of reciprocal relations.
My Government, notwithstanding reiterated and well-known efforts on the part of the Executive Power and of distinguished leaders of the Legislative Power, has encountered serious difficulties in its effort to arrive at a satisfactory adjustment of the still pending Public Works Debt through means of appropriate legislation. The Government of the Republic is confident, nevertheless, that those difficulties, inherent in the complete democratic regime existing in Cuba, will be easily understood by Your Excellency’s Government, which, because it is governed by a constitution analogous to that of Cuba, may have found itself many times confronted with similar obstacles.
The liquidation of the so-called Morris claim, examined during the conversations in Washington, as Your Excellency points out, was conditioned in subsequent conversations held in Habana upon a fiscal [Page 537] situation which would permit of its payment without bringing upon the Government charges of unjustified preference.
III. Your Excellency mentions in the course of his note the negotiations pending since November 30, 1938, partially to modify and add to Schedules I and II of the Trade Agreement of 1934, and, although I shall later specifically express the opinion of my Government in this matter, I hasten to clear up certain doubts which might be interpreted as a delay on the part of the Government of Cuba in replying to the ever welcome requests of Your Excellency’s Government.
In effect, when our Embassy in Washington was informed of the willingness of the Government of the United States to negotiate an additional trade agreement, the Government of Cuba held public hearings similar to the procedure followed by Your Excellency’s Government, hearing the parties interested in the negotiation, and oil February 16, by means of a note from the Embassy in Washington,33 it definitively submitted the proposals which contained the desiderata of the Cuban Government.
On May 24 the United States sent our Ambassador in Washington its partial counter-proposal,34 announcing that (its views concerning) a very interesting part of the Cuban proposals, those with reference to the definition of dumping and other general provisions, would follow the counter-proposals—which has not yet occurred.
My Government, notwithstanding that situation, which naturally prevented it from forming an exact opinion, proceeded to reply to the part of the counter-proposals already received and, at the same time, made certain observations which were sent to Washington the 15th of this month and were formally presented to the Department of State on the 20th,35 according to a cable from our Embassy.
IV. Having made this explanation, and notwithstanding having expressed on a previous occasion, orally to Your Excellency, the opinion of the Cuban Government concerning the Treaty of Residence and Navigation, I permit myself expressly to confirm that opinion now.
I told Your Excellency then that, although the Cuban Government, in principle, had the greatest interest in contributing to place the every-day-more-important relations between our citizens on a proper and firm basis of reciprocal facilities, it found, among the provisions of said project, aside from certain ones which appeared not to be reciprocal in character, certain others which conflicted fundamentally with existing legislation in Cuba, and which perhaps might constitute a serious obstacle to the free development of the constituent activities soon to begin.
Furthermore, I pointed out another and still graver difficulty, and that is that, however great might be the desire of the Government of [Page 538] Cuba to establish reciprocal privileged treatment with the Government of the United States, the concessions which were to be given in social as well as civil, mercantile, maritime matters, etc., would have to be extended automatically, because of treaty obligations and by virtue of the most-favored-nation clause, to countries which do not have relations of such close friendship with Cuba as does the United States, rendering practically invalid, through the obligatory extension of such privileges, all the laws established by the Cuban nation for the protection of the worker.
My Government, having these circumstances in mind, wishes to state its intention of postponing the examination and discussion of the draft Treaty of Residence and Navigation proposed by Your Excellency’s Government until after the work of the already convoked Constituent Assembly has been completed.
V. Your Excellency’s note refers also to a matter which, although it does not appear opportune to discuss it in detail because it affects the concept of the sovereignty and relations of the public powers of the Cuban nation, I desire, nevertheless, frankly to clarify with the Government of the United States, whose sympathy for us, which we appreciate, in the laborious and difficult solution of this problem, is reiterated: it is that which refers to the measures adopted by the Cuban Congress to liquidate the mortgage moratorium. The Senate of the Republic, with the object of settling a problem of exceptional character which affects the very social and economic marrow of the country, has just approved a bill which is awaiting discussion in the House of Representatives.
Such circumstances prohibit the Executive Power from taking into consideration any recommendation which involves a specific injury to the constitutional faculties of the public powers and to the national sovereignty.
I do not know what the fate of the bill referred to will be, but it is possible to suppose that in the event the bill becomes a law of the Republic the investments of citizens of the Union—which your note mentions—and which may be affected by the bill referred to, although very small in proportion to the total amount which the bill aspires to regulate, will doubtless receive treatment identical with that accorded to national interests, without its being possible, as Your Excellency will easily understand, to agree in this matter to any differentiation or privilege.
VI. The grave situation which the Cuban Government confronts because of the depreciation of the national currency, referred to by Your Excellency, and which we discussed amply in our conversations of the 6th, 7th, and 8th, at the time of the crisis, has improved markedly as a result of the prudent measures adopted by the Government to overcome a panic which was due more to artificial causes than to a normal reaction of the currency.
[Page 539]I had occasion to express to Tour Excellency at that time assurance that the Government of President Laredo Brú would not take steps which would tend to aggravate the dislocation of the Cuban currency, or the paralyzation of foreign trade, and I am confident of having convinced Your Excellency of the interest of the Government of the United States, parallel to that of Cuba, in contributing to the stabilization of the currency, the reduction in value of which would have eliminated or reduced its acquisitive power in relation to countries having currencies of full value. Consequent with the substance of those conversations, the Cuban Government has had the satisfaction of seeing confidence promptly restored by the prudent emergency legislation which it dictated opportunely, and among which legislation I should point out in particular Decree No. 1727,36 which clarifies the proposal of the Government to restore business without having resorted to measures which might unnecessarily have interfered with banking operations connected with our foreign commercial activities.
VII. My Government notes with true regret the announcement contained in Your Excellency’s note of the decision of your Government to suspend the studies pertaining to the aforementioned program of economic cooperation which has as its object the improvement of the commercial relations between our two countries, until such time as the situation and the specific matters mentioned in such note are clarified. My Government, although it vehemently believes that the present note clarifies the situation and the specific matters mentioned above, is obligated, much to its regret, to declare on its part that it has suspended the efforts of various kinds directed at converting into legislation the agreements related to that program of economic cooperation, and expresses its hope that the doubts or inexact interpretations which appear to underlie the decision of the Government of the United States which Your Excellency has communicated to me may disappear.
My Government desires also, foreseeing serious economic difficulties which were examined and discussed during the conversations in Washington in November 1938, when the program of economic cooperation was agreed to, wishes to record its fear, that in the face of economic and fiscal realities which are beyond its untiring efforts, it will be obliged, to its great regret, in order temporarily to overcome the possible difficulties, to suspend at a not far distant date the service of the readjusted obligations which form a part, as far as this Republic is concerned, of the program of economic cooperation so many times referred to.
VIII. The denunciatory warning that your Government is pleased to give the Government of Cuba of the announcement of its intention [Page 540] publicly to declare on the 1st day of August next that the negotiations to modify in part the commercial treaty of 1934 will be indefinitely suspended, has caused the Government of the Republic natural surprise and regret and obliges it, as much as it deplores it, in the face of such an unexpected decision, to declare on its part and as of today’s date, July 23, that said negotiations have been indefinitely suspended.
I renew [etc.]