611.3731/2238½
Memorandum of Conversation, by the Assistant Chief of the Division of Trade Agreements (Deimel)
| Participants: | Señor Dr. Pedro Martínez Fraga, Cuban Ambassador |
| Mr. Deimel | |
| Mr. Reinstein86 | |
| Mr. Smith87 | |
| Mr. Briggs | |
| Mr. Bonsal88 |
The Cuban Ambassador called by appointment to receive the draft text89 of proposals for conclusion of the supplemental trade-agreement negotiations. The draft which had been previously approved was presented to him and the text was read over with him with appropriate explanations. The Ambassador noted specifically the provision in the sugar note which would effect restoration of the reduced duty upon announcement of the restoration of quotas, without necessarily awaiting the date of their actual restoration.
With respect to his proposal on rice it was pointed out to him that the rates and quantities had been left blank because of some doubt whether those he proposed would actually prove a benefit to the American rice industry and thus achieve the desired result. He agreed that it would not be desirable to include this proposal unless it could be formulated in such a manner to be of material interest to the rice producers. It was pointed out to him that the rice association’s interest was now primarily in disposing of an adequate volume and that their earlier views as to margin of preference had been modified; and further that the statistics of imports of American rice into Cuba for the last two years exceed the amount of the proposed quota. Since the proposal would involve a materially higher duty and lower preference on rice imported in amounts exceeding his proposed quota, the net effect might be one disadvantageous to the rice producers or at least regarded by them as making their position in the Cuban market worse rather than better. It developed in the conversation that the Cuban Ambassador had not formulated his proposal on the basis of any recent discussion with persons directly concerned in the marketing of rice in Cuba. Accordingly, at his request Mr. Deimel agreed to communicate with Mr. Reid, Executive Vice President of the Rice Millers Association with a view to developing information which would clarify the matter.
[Page 575]As to the remainder of the proposed Schedule I, it was explained to the Cuban Ambassador that this contained merely those items which we had proposed in May and which the Cuban Government had not rejected in the Ambassador’s reply in July; that of the sixteen items other than rice, twelve consisted merely of a writing into the Agreement of customs clarifications and classifications effected by the Cuban Government since the conclusion of negotiations in 1934; that only the remaining four items, Palm Beach cloth, canned salmon, canned mackerel, and canned peanut butter, would effect any improvement in treatment of American trade and that consisted primarily of the insertion of new classifications and rates to bring the duties on these products to a level more nearly corresponding with the rates on closely competitive products. It was pointed out to the Ambassador that some improvement of treatment for American goods was necessary although of course we did not intend to ask for more than was reasonable. The Ambassador indicated that he did not think there would be any difficulty with these items.
The Ambassador stated that the supplemental agreement would have to be ratified by the Cuban legislature which would require a change in the final article, but that this ratification could be accomplished promptly so that signature Friday or Saturday and ratification Monday might be possible.