837.61351/3888: Telegram
The Secretary of State to the Ambassador in Cuba (Braden)
626. The Commodity Credit Corporation has made a most careful study of the insurance contracts, in connection with which they have been in almost continuous session for the past few days, with Rasco,65 Albertini66 and Godoy representing the Institute. The principal issue has been the reinsurance in connection especially with the policies of the Rhode Island Insurance Company and four Cuban companies.
The representatives of the Commodity Credit Corporation have in this regard obtained from the Institute’s representatives, through negotiation, certain readjustments and additional commitments which from the technical aspects are satisfactory to the Commodity Credit Corporation.
Thus the Commodity Credit Corporation has concluded that the coverage is satisfactory and it will according to the contract be able to effect 90 per cent payments on June 1.
[Page 192]The Department’s representative attending these insurance meetings has followed the discussions with your opinions of the transaction fully in mind. The Department did not see fit to urge the CCC as purchaser of the sugar to inject into its examination of the contracts and in its conversations with the Cubans any other considerations than the proper technical ones. (It might be mentioned that the Commodity Credit Corporation would also be loathe to place the Institute, whose collaboration in the coming months for the fulfilment of the sugar purchase contract is essential, in the extremely embarrassing position vis-à-vis the industry in which refusal to accept the insurance contracts would have placed it.)