837.61351/2389
The Ambassador in Cuba (Messersmith) to the Secretary of State
[Received January 23.]
Sir: Supplementing my despatch No. 1428, of January 18, 1941,43 and with reference to the Department’s confidential telegram No. 20, January 17, 6 p.m.,43 I have the honor to report that representatives of the Government met on January 20 with representatives of the sugar industry, to discuss again the offer of the Export-Import Bank to finance the production during 1941 of an extraordinary sugar quota of 400,000 tons. The representatives of the industry were informed at the meeting that the Export-Import Bank was prepared to raise the financing price from $3.25 per bag to $4.00, the other terms remaining unchanged.
I am enclosing a memorandum43 concerning the meeting, as described to the Embassy by an entirely reliable person, who was present. It is obvious that, in contrast to its attitude during the first meeting, the Government warmly commended the offer to the industry; and that the mill owners approved the offer enthusiastically. The general impression is that the objections on the part of the colonos44 were made [Page 232] in a personal, rather than official, way. I have now been reliably informed that the colonos last night communicated to the Government their approval of the offer. It is therefore expected that the Government shortly will indicate acceptance of the offer.
Respectfully yours,