Memorandum by the Chief of the Division of the American Republics (Duggan) to the Secretary of State

The Secretary: In accordance with the Secretary’s suggestion, I telephoned Dr. Barón66 and informed him that the Secretary wished Ambassador Martínez Fraga to know that we were giving the most careful consideration to his request for a credit, that we had requested a full report and had already received a preliminary report on the Cuban financial situation from Ambassador Messersmith, and that as soon as we had the complete report, we would endeavor to come to some conclusion. I pointed out, however, that no member of the Cuban Government had brought to Mr. Messersmith’s attention the crisis in Cuban finances, and that the restoration of Cuban credit by action on the Public Works Obligations had always been a prerequisite. I informed him that in this latter regard, I thought the Department’s policy had been firmly established. I concluded by saying that we were giving thought to ways and means for alleviating the economic problems confronting all of the American republics, including Cuba, and for that purpose the Congress had been requested to increase the funds of the Export-Import Bank. I expressed belief that action on this request might be completed in the near future.

Laurence Duggan
  1. José T. Barón, Cuban Chargé.