837.61351/4454: Telegram
The Secretary of State to the Ambassador in Cuba (Braden)
1085. The Department appreciates the careful delineation of the Central Tinguaro case presented in your Airgram no. A–2400, December 1, 4 p.m.,21 which has been of great assistance.
Since the Cuban courts are now reviewing the cases presented by the Cuban-American Sugar Company concerning the interventorship of the mill, the Department does not feel warranted in commenting on the legality of the Cuban Government’s action. It does wish to point out, however, that it has observed with concern the manner in which Cuban officials tend to impugn the Cuban-American Sugar Company, as evidenced particularly by the pamphlet, El Oaso de Central “Tinguaro”,22 edited by the Cuban Ministry of Agriculture, and other statements.
The Department’s position with respect to expropriation of the property remains unchanged. It will, of course, look to the Cuban Government for just, prompt and adequate compensation in case of violation of property rights including damages to the Company property subsequent to its occupation by representatives of the Cuban Government.
The Department’s position in the matter has, it is believed, been consistent with yours, in the sense of endeavoring through informal means to promote a direct settlement between the Cuban Government and the Cuban American Sugar Company. The Department has not felt called upon to express an opinion as to the position assumed by the Cuban Government to the effect that the reconstruction of the mill is in the public interest. It does not seem to the Department that that is a matter calling for an expression of opinion by this Government. However, in view of the Cuban Government’s position, it seems that the direct settlement toward which you have worked so painstakingly could only be on a basis of reconstruction. The Department has been impressed with the fact that the concessions, which the Cuban American Sugar Company has indicated would be acceptable to it in connection with reconstruction, seem highly unrealistic.
[Page 210]Officials of the Department have urged upon the Cuban Ambassador and Lόpez Castro the desirability of a settlement of this case which would avoid its being moved into the field of an international claim. The Department will be interested in your views as to whether any progress has been made since Mr. Keiser’s arrival in Cuba.