837.61351/3735: Telegram
The Ambassador in Cuba (Braden) to the Secretary of State
[Received 7:14 p.m.]
143. My despatch no. 2319, of February 27,36 re sugar insurance 1943 crop. It is recommended in connection with the crop sale con [Page 186] tract38 that a provision be inserted requiring public bids re insurance on 1943 sugar. Although the cost of insuring such sugar through June 30, 1944, will be borne by the Cuban producers I believe that without some such safeguard a situation may develop in which our attitude is misinterpreted to the benefit of certain interested persons in Habana. I am bringing informally to the attention of the Prime Minister39 rumors circulating in Habana with respect to alleged plans for splitting commissions in certain directions (the premium will reportedly amount to almost $400,000) as well as to reports that those allegedly promoting the deal are saying that “the American Government wants it done that way”. I shall also point out that notwithstanding the fact that the cost of the insurance is to be borne by producers, with the American Government investing upwards of $150,000,000 in this crop, we can legitimately insist that responsible American brokers be not excluded from bidding for the business.
(Provision for the placing of this insurance by the Institute40 is contained in article 16 of the crop decree transmitted with despatch no. 2372 of March 6 last41).