837.24/1438: Airgram
The Secretary of State to the Ambassador in Cuba (Braden)
A–1573. Reference Embassy’s telegrams 379 of June 3, 395 of June 9, and 423 of June 17.72 The reservations of the Cuban Government on its approval of decentralization plan are generally acceptable to the Department and the Board of Economic Warfare. The following comments on these reservations and the operation of the plan were made by Mr. Lazo, Assistant Director of the Office of Exports,73 in a letter to Ambassador Braden:
“It is understood that Cuba has the right to control imports into Cuba; it is further understood, of course, that the Cuban Government has the right to handle through its Embassy in Washington and through the Department of State any matter which in the opinion of the Cuban Government should be handled through such a channel; it is further understood that Cuba will indicate in the first instance the essentiality of materials imported into Cuba and the distribution of supplies allocated to Cuba; however, in this connection, BEW wishes to point out that if such distribution results in the freezing out of American exporters and damage to long established channels and trade connections, BEW has the responsibility of doing what it can to protect such American trade channels.
[Page 200]“BEW recognizes that under the Decentralization Plan, as proposed, the Cuban Government agency issuing import recommendations will do so in the first instance, but that all recommendations are subject to additional recommendations on the part of the U.S. Embassy in Cuba and further to examination by BEW in Washington where the final determination rests.
“BEW likewise recognizes Cuba’s right to establish essential needs of the Cuban Government and to indicate whatever priority Cuba wishes to give these needs; but BEW also wishes to point out, in this connection, that such indication is not necessarily binding upon BEW and WSA.74 We will, of course, do everything in our power to implement such recommendations and to cooperate fully with Cuba in the smooth operation of the plan, but we cannot give guarantee that Cuba’s product or shipping priority categories will be necessarily the same as ours.
“On Section 5, BEW wishes to be on record on the fact that essential development and production programs designed to produce strategic materials for the war needs of the United Nations will of necessity receive priority ratings from us. Every attempt will be made to protect Cuba’s essential domestic economy allocations and not to have American development programs interfere with the maintenance of this minimum economy.
“The BEW is willing to extend the time of validity of Certificates of Necessity. We strongly recommend that as of July 1, the Cuban authorities cease using a Certificate of Necessity form and adopt the Import Recommendation form, which we understand is already prepared. The BEW will accept until September 1 Certificates of Necessity issued prior to July 1. After September 1, it is understood that only Import Recommendations will be acceptable. Those commodities not now requiring a Certificate of Necessity, but which the Cuban Government has indicated will require Import Recommendations will be licensed by the BEW with or without an Import Recommendation during the interim period of July 1 to August 31. As of September 1, these commodities will require an Import Recommendation. We trust that we may be able to proceed immediately with the establishment of the Decentralization Plan in Cuba, in accordance with the foregoing.”
The Embassy should advise the Cuban Government that the reservations set forth by the Government to its acceptance of the Decentralization Plan are acceptable subject only to the above qualifications of the Board of Economic Warfare. Unless any serious objection is encountered, announcement should be made that the plan will become operative July 1 as described above.
Please confirm immediately.