837.51/2805
The Secretary of State to the Chargé in Cuba (Briggs)
Sir: Reference is made to despatch no. 2483 of August 13, 1941 transmitting a formal request of the Cuban Government for technical [Page 194] experts in connection with monetary and banking questions, and numerous other correspondence relating to the same subject.
The Department has arranged with the Treasury and the Board of Governors of the Federal Reserve System to send to Habana a technical mission made up as follows:
- Mr. Harry D. White, Assistant to the Secretary of the Treasury,—Chief of Mission.
- Mr. Walter R. Gardner, Division of Research and Statistics, Board of Governors of the Federal Reserve System.
- Mr. George B. Vest, Assistant General Counsel, Board of Governors of the Federal Reserve System.
- Mr. George A. Eddy, Division of Monetary Research, Treasury Department.
- Mr. Harry Spiegel, Division of Monetary Research, Treasury Department.
Arrangements are being made to have the mission arrive in Habana about October 7. You will be informed by telegraph as to the exact arrival dates and other details. It is contemplated that the mission may remain some four weeks; Mr. White will remain only a short while at the outset and may return later to Habana.
The Department has considered carefully the suggestion that Mr. Louis S. Rosenthal, Vice President of the Chase National Bank, participate in the work of the mission. The Department does not believe that it would be desirable for the Government of the United States to request Mr. Rosenthal’s services for this purpose. It does feel that his advice and assistance would be of undoubted benefit to the technical mission, and suggests that it would be entirely proper for the Minister of Finance to request his services as consultant.
The appropriate agencies of the United States have given careful consideration to the request of the Minister of Finance for the assistance of the Export-Import Bank in facilitating the preparation of 15,000,000 pesos of notes which would be issued against a reserve of $9,000,000 of gold. It is pointed out that the Government of Cuba could arrange such an operation without the extension of any credit at all, since it would require only the small amount of funds involved in the manufacture of the notes. As such notes were delivered and issued in Cuba the Cuban Government could quite readily acquire gold bars in New York for purposes of reserve. This Government feels that the decision to take such action must lie with the Government of Cuba. It wishes to point out, however, that such action at this point might not be entirely consistent with the projects worked out by [Page 195] the Government of Cuba with the assistance of the technical mission, and that it would be desirable to postpone such action pending the arrival in Habana of the mission. The mission would be prepared, if requested, to study at once and advise with the Minister of Finance regarding such an operation, and if it were finally determined to go ahead with it, the operation would not have to wait for the completion of all other parts of a general monetary and banking program which might be recommended.
Although the Government of the United States believes that it would be desirable thus to postpone decision in the matter, the Export-Import Bank is prepared to undertake to facilitate the operation on a basis similar to that described above, if such is the determination of the Cuban Government.
Please discuss these matters with the Cuban authorities and inform the Department at once if the plans for the technical mission are satisfactory.
Very truly yours,