837.61351/2788
The Ambassador in Cuba (Messersmith) to the Secretary of
State
No. 3348
Habana, January 28, 1942.
[Received January
29.]
Sir: I have the honor to enclose texts and
translations of the exchange of notes referring to the sale of the 1942
Cuban sugar crop, as agreed upon at a meeting with Sr. López Castro,
Senator Casanova and Dr. Mañas last evening, and as confirmed thereafter
by telephone by Mr. Walmsley.
The Cuban Government decree authorizing the Institute to sell the crop on
the terms agreed upon was signed by President Batista last night and a
copy will be transmitted as soon as it is promulgated in the Official Gazette.78
Final agreement on the contract itself was also reached early this
morning and it is hoped to sign the contract and the exchange of notes
during this afternoon.79
[Page 250]
With respect to the exchange of notes the Embassy’s task was facilitated
by an assurance received by telephone from Dr. Joshua Bernhardt of the
Department of Agriculture last evening that a footnote would be inserted
at the appropriate point in the Department of Agriculture’s sugar
statistics to the effect that Cuba had, at the request of and in
cooperation with the Government of the United States, produced . . . . .
gallons of invert in lieu of raw sugar which, by sugar content, would
have been the equivalent of . . . . . tons of sugar. Mr. Mersereau who
obtained the foregoing assurance from Dr. Bernhardt, is confirming it by
a letter to the Institute on behalf of Defense Supplies Corporation, a
copy of which will be transmitted to the Department in due course. The
foregoing was accepted by Sr. López Castro in lieu of the inclusion of
the clause “and that for statistical purposes the molasses shipped to
the United States by Cuba in 1942 be treated as sugar.”
. . . . . . . . . . . . . .
Respectfully yours,
For the Ambassador:
Ellis O.
Briggs
[Enclosure 1—Translation]
The Cuban Minister of State (Cortina) to the American Ambassador (Messersmith)
Excellency: I have the honor to refer to
the contract signed on . . . . . by representatives of the Cuban
Sugar Stabilization Institute and the Defense Supplies Corporation,
an agency of the United States Government, for the sale to the
United States of the 1942 sugar cane crop of Cuba.
I confirm to Your Excellency that, in accordance with the terms of
this contract, the production and exportation of the proceeds of the
Cuban cane crop in 1942 shall be regulated by the sugar legislation
now in force in Cuba, and that my Government will take the
appropriate measures for both the manufacture of sugar and molasses
and the delivery thereof to ports of embarcation.
My Government desires in addition to make the following observations:
- 1.
- In view of the terms of the purchase contract, my
Government desires to state that it is its understanding
that the increases in relation to prices now prevailing in
the income of sugar-producing areas in the United States
will be through the medium of adjusting the
[Page 251]
raw sugar price ceiling. My
Government wishes to know what assurances it may receive in
this respect.
- 2.
- The delivery of a portion of the crop in the form of
high-test molasses for alcohol, as agreed to by the
Institute at the request of the Defense Supplies
Corporation, is performed as an act of cooperation by Cuba
in the joint war effort and without prejudice to Cuba’s
position as a supplier of the United States sugar
market.
- 3.
- The Government of the United States will exert appropriate
efforts to the end that maritime freight rates from Cuban
ports to United States ports for the transportation of the
products of sugar cane shall not be raised during the life
of the contract.
I avail myself [etc.]
[Enclosure 2]
The American Ambassador (Messersmith) to the Cuban Minister of State (Cortina)
No. 48
Habana, January , 1942.
Excellency: I have the honor to acknowledge
Your Excellency’s note of this date referring to the contract signed
on January . . . . . by representatives of the Defense Supplies
Corporation, an agency of the United States Government, and the
Cuban Sugar Stabilization Institute for the purchase by the United
States of the 1942 sugar cane crop of Cuba.
I am pleased to observe that the Cuban Government understands that
the production and exportation of the crop in 1942 will be
undertaken in accordance with the terms of the contract and sugar
legislation now in force in Cuba and that your Government will take
the appropriate measures for both the manufacture of sugar and
molasses and the delivery thereof to ports of embarcation.
I am directed by my Government, furthermore, to inform Your
Excellency as follows:
1. The Government of the United States undertakes to exert during the
life of the contract all appropriate efforts to the end that the
present relative position as to net incomes of the various
sugar-producing areas supplying the United States market shall be
maintained, within the limits of United States legislation. Nothing
in this or any other arrangement shall be interpreted in any way to
obligate the United States not to reduce the duty on sugar from
other countries.80
[Page 252]
With reference to items 2 and 3 of your note, I am pleased to inform
Your Excellency that my Government shares the understanding of your
Government.
Please accept [etc.]
