837.61351/4086
Memorandum by Mr. George F. Scherer of the Division of the American Republics5
Status of Central Tinguaro
The Embassy at Habana reports, in despatch no. 3745 of July 8, 1943,4 that the Cuban Government has brought suit against the Cuban-American Sugar Company, alleging that the fire of early 1943 destroying most of the Central Tinguaro was of incendiary origin. The company has employed an impressive array of legal talent which it hopes will cause the case to be resolved favorably in the very near future.
Mr. Keiser of the company is endeavoring to close a deal with Mr. Miller [Page 204] of the Atlántica, by which the latter would dismantle the milL The Government objects to this course, maintaining that the mill should be rebuilt and continued in production. As an incentive, the Government indicates it may assist in the reduction of the freight rate and grant an additional quota of 30,000 bags (potentially dangerous move as it would upset existing quotas).
The Embassy has indicated to Dr. Mañas that it considers the resumption of grinding as uneconomical, owing to the unsuccessful record of the mill over a considerable period. Mr. Briggs7 mentioned to Dr. Mañas that he would be pleased to present his views to the Prime Minister at a suitable time.
I agree with Mr. Briggs that it appears wholly desirable to remove this uneconomic producer from the Cuban sugar picture.
On the telephone today Mr. Briggs said this case is getting very hot. The Government is evidently forcing an early decision.