The Secretary of State to the Ambassador in Cuba (Braden)
A–1001. You are authorized to present immediately to the Cuban Government the following note concerning corn and beans, the text of which has been approved by Board of Economic Warfare, Commodity Credit Corporation, and the Department.
“Reference is made to the active and thorough consideration which has been given by the appropriate agencies of the United States Government to the possibilities of cooperating with the Government of Cuba in an intensification of its program for agricultural diversification. This program was discussed by officials of both Governments and it was concluded that the benefits derived therefrom would tend to alleviate the economic situation of Cuba that may result from the reduced sugar grinding made necessary by the war.
The appropriate agencies of the United States Government have reached a separate agreement with your Government concerning a program designed to increase the production of peanuts in Cuba.
Commodity Credit Corporation will agree to purchase the entire exportable surplus from the 1943 planting of corn and beans in Cuba, made available before May 1, 1944, upon the following basis:
- Commodity Credit Corporation will pay $2.20 per hundred pounds for mixed corn, in carload lots, f. o. b. railroad station [Page 226] nearest to the Cuban producer. The corn shall be shelled and delivered in sound usable bags, the cost of which is included in the price. Corn will be accepted which is sound, merchantable, and not sour, musty, heating or weevilly, which does not have any commercially objectionable foreign odor, which is not otherwise of distinctly low grade, and does not have a moisture content in excess of 17½ percent and does not contain cracked corn or foreign material in excess of 4 percent.
- Commodity Credit Corporation will pay $5.00 per hundred pounds for black beans and $5.25 per hundred pounds for red beans, in carload lots, f. o. b. railroad station nearest to the Cuban producer. Bags will be made available by the Cuban producers at the rate of 20 cents per sound bag of 100 pound content, the cost of which will be paid by Commodity Credit Corporation. The beans are to be pure, sound, merchantable, and free from mold and weevil.
A representative of Commodity Credit Corporation will be sent to Cuba who will make the purchases of com and beans on the basis herein stated. Adequate notice should be given this representative as to when and where such corn and beans are available for sale.
The Government of the United States will expect the Cuban Government to maintain an embargo upon the exportation of corn and beans from the 1943 planting and of peanuts from the 1943 and 1944 plantings except to Commodity Credit Corporation, or its nominees; and that all taxes, of whatever nature, including export taxes or other fees and charges, if any, imposed on such corn and beans while in the Republic of Cuba, or imposed because of exportation of such corn and beans from the Republic of Cuba, shall not be borne directly or indirectly by Commodity Credit Corporation, or its nominees.
It is not the purpose of the Government of the United States to profit by the sale or other disposition of peanuts, corn or beans purchased in Cuba pursuant to this program, and should profit be found to exist after deduction of the total costs, including duties, taxes or other charges properly applicable to all agencies of the Government of the United States, the Government of the United States and the Government of Cuba shall agree as to disposition of such profit to the general benefit of Cuban agriculture.”
Señor Lόpez Castro has indicated his agreement with the text. Kindly telegraph Cuban Government’s reply.