837.61351/4576: Telegram
The Ambassador in Cuba (Braden) to the Secretary of State
[Received February 8—1:59 a.m.]
120. On Friday afternoon Prime Minister stated that because molasses alcohol negotiations had reached an impasse he wished to [Page 926] discuss them with me. Accordingly, in interview Saturday afternoon, he insisted Cuba be allowed to export to the United States this, year approximately 28,000,000 proof gallons of beverage alcohol or liquors. I told him categorically I was sure neither the Commission nor authorities in Washington could or would consent to more than 14,300,000 gallons, the amount imported during 1943, and it was agreed that with this fact in mind he redraft the Cuban proposal.
This morning Prime Minister and I began discussion of his redraft which proposed approximately 19,000,000 beverage liquor imports for period of 12 months beginning March 1, 1944. At this point, as prearranged, I requested Scheuer to join us. The latter insisted that 14,300,000 gallons was absolute maximum, objected to March 1 date, expressed opinion that 75 cents per gallon for industrial alcohol was high and brought up several other points of a more or less technical nature.
After 5 hours interview Prime Minister requested that American Mission meet tonight with Cuban group under chairmanship of Minister of Agriculture,90 endeavor to settle the several technical points, and he strongly urged acceptance of 75-cent price, stating that this would enable him to convince President Batista to limit beverage alcohol exports to our figure.
While, by reason of Scheuer’s forceful presentation, Prime Minister has in considerable measure come around to viewpoint of American Mission with respect to beverage alcohol, I believe Under Secretary’s interview with Concheso,91 if transmitted to Batista should be most helpful, particularly as so many influential political figures are now directly interested in beverage business.