Foreign Relations of the United States Diplomatic Papers, 1939, The American Republics, Volume V

611.3731/2141

The Secretary of State to the Cuban Chargé (Barón)

Washington, August 31, 1939.

Sir: Reference is made to the Embassy’s note of July 20, 1939, with enclosed memorandum and schedules,⁷⁸ conveying the counterproposals of the Government of Cuba with respect to the proposed modification of the existing Trade Agreement of 1934 between the United States and Cuba.

It is noted that the Government of Cuba considers that the proposals made to it relative to Cuban sugar and tobacco are to be regarded as reparations for damages sustained as a result of changes in the situation which have occurred subsequent to the conclusion of the Trade Agreement of 1934 and consequently as excluded from discussion as subjects for reciprocal concessions on the part of Cuba. It is also noted that the Government of Cuba desires concessions on certain meat products and extension of existing concessions on certain vegetables, in return for which it would be prepared to grant certain specified concessions on American products.

In reply, I have to advise you that the authority granted to the Executive under the Trade Agreements Act of the United States does not contemplate the reduction of import duties of the United States except in return for reciprocal concessions for American products in foreign markets; and further that, as has been pointed out, it would not be possible for my Government under its established procedure to offer concessions to the Government of Cuba on products not included in the list accompanying my Government’s announcement of November 30, 1938, except after further public announcement and opportunity for the receipt of views from the interested public.

Accordingly, I regret to state that it would not be possible to conclude a trade agreement containing the concessions requested by your Government as outlined in your note under acknowledgement, under the terms of my Government’s announcement of intention to negotiate a supplemental trade agreement with your Government, issued on November 30, 1939.

Accept [etc.]

For the Secretary of State:

Sumner Welles

78. Memorandum and schedules not printed.