837.61351/2377
Memorandum by the Assistant Chief of the Division of the American Republics (“Walmsley)
[Subject:] Despatch No. 1394, January 10, 1941, from Habana39
The position of Dr. Cortina, as of Friday, January 10, vis-à-vis the Export-Import Bank proposal to finance a 1941 Cuban surplus of 400,000 Spanish long tons of sugar, is outlined in the attached memorandum of conversation between Mr. Beaulac and Dr. Cortina.40 As the Department is aware from Mr. Beaulac’s telephone conversation of January 13,41 Cortina may now oppose the loan. The principal points taken up on January 10 are as follows:
- (1)
- Dr. Cortina exhibited an extraordinary sensitiveness to American “pressure” toward extending 522.42 While Cuba recognizes the wisdom of extending this legislation, Dr. Cortina pretended [contended] that we should rely on Cuba to do so “spontaneously”. Mr. Beaulac agreed and expressed regret that Cuba had not taken advantage of numerous opportunities to act “spontaneously”. The Chargé appeared to obtain Dr. Cortina’s agreement that the proposed sugar financing now added an important technical reason for extending 522 (thereby extending the life of the Sugar Institute, which would be the principal factor in the operation).
- (2)
- Cortina regretted that the proposal fixed the sum of 400,000 tons instead of the originally requested 500,000 tons but said that he would not make an issue of it.
- (3)
- Dr. Cortina also appeared to wish to bargain about the rate of advances. Cuba has asked for $4.00 per bag. The Export-Import Bank offers $3.25. Dr. Cortina hoped the ante could be raised to $3.50. His principal arguments related to “cost of production”, which the Chargé pointed out would not have been covered even by the $4.00 rate. The cost of production on sugar is not covered in any way by prices obtained by Cuba’s contribution to the world market in recent years.
- (4)
- In relation to the general subject of aid to Cuba, the Chargé found an opportune occasion to review the past three years of Cuban-American relations which have been largely made up of generous offers of cooperation by the United States conditioned upon certain acts of cooperation on the part of Cuba which have long been obviously necessary. … Dr. Cortina apparently conceded that Cuba should in fact now offer some concrete token of its willingness to cooperate.
- (5)
- The Foreign Minister … referred to the importance to the new administration’s stability and strength of “an achievement”. Mr. Beaulac, accepting this premise by implication, observed that while the United States had repeatedly shown a desire to assist and cooperate, the Cuban Government of recent years has exhibited no leadership in combatting attacks within Cuba on the United States and against the traditionally friendly United States-Cuban relations. This negative policy on the part of recent Cuban Governments stands in strange contrast to the Cuban Government’s attitude that it is up to us to extricate the Cuban Government from difficulties to the solution of which it has as yet made no contribution.
The net result of the conversation seems to have been that Cortina would use Mr. Beaulac’s observations in discussing the sugar finance proposal with the members of the Government, and the meeting with Mr. Pierson scheduled for Friday night was postponed to Tuesday, when the Ambassador is expected back.