The Secretary of State to the Ambassador in Cuba ( Braden )

No. 1586

Sir: Reference is made to your despatch no. 2703 of April 6, 1943 enclosing copy of note no. 527 of March 3147 from the Cuban Minister of State.48

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The Cuban note states that the Minister of Agriculture,49 while expressing satisfaction with the bases for the accord between the Cuban and the United States Governments for the purchase until May 1, 1944 of the exportable surplus of corn and legumes, requests in effect for Cuba the benefit under an escalator provision of any rise of prices for these commodities occurring in the United States market.

The Department, together with the Commodity Credit Corporation and the Board of Economic Warfare, has given this additional request of the Cuban Government most careful consideration. This Government has in this connection reviewed the course of the discussions in Washington with Señor Amadeo Lόpez Castro which led to the purchase agreement. The prices which were eventually reached and agreed to were determined solely by the amount of incentive estimated to be necessary to stimulate production of these commodities. At no time were the prices linked with United States markets; and the question of an escalator clause was not injected into the discussions. The Department, in fact, recalls that Señor Lόpez Castro departed fully satisfied with the terms for the purchase.

For your files, there are enclosed copies of communications of April 20 and April 24 from the Commodity Credit Corporation and the Board of Economic Warfare.50

You are authorized to communicate this Government’s views with regard to the corn and bean agreements to the Cuban Government.

Very truly yours,

For the Secretary of State:
Sumner Welles
  1. Neither printed.
  2. Emeterio S. Santovenia.
  3. Joaquín Martínez Sáenz.
  4. Neither printed.