837.5018/82a: Telegram

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

276. The following is a press release to be made available by War Food Administration for publication in morning papers tomorrow, March 30. It is appropriate that it be made available to Cuban papers for publication at same time. The rate of wheat-flour export payment will probably be announced tomorrow afternoon but it does not form a part of the press release.

“Flour Export Program for Cuba Announced

In compliance with an agreement made several months ago by the terms of which the Cuban Government agreed to sell to the United States the exportable surplus of the 1944 Cuban sugar crop at a specified price, the War Food Administration today announced a program designed to stabilize the price of flour shipped to that country from the United States for the remainder of 1944.

The program involves the absorption of certain losses in connection with the delivery of flour at specified prices and payments will be made to exporters of flour manufactured from wheat produced in the United States.

Unlike previous flour export programs which were developed to encourage and maintain foreign markets for United States wheat products the new program is intended specifically to fulfill a commercial agreement. For that reason it will not apply to any country other than Cuba.

From time to time the WFA’s Distribution will announce the rate of payment to exporters, the time in which the flour must be shipped from the mill and exported and the total quantity which may be sold during the effective period of the announced rate. The rate of payment to be made will be that in effect on the date of the sale of flour.

Under the 1944 program, sales of flour to a Cuban buyer will not be approved until sales by any exporter to the same buyer under the 1943 program have been liquidated. Therefore, the exporter will be required to include in his notices of sale the name and address of each foreign buyer. The exporter must also await notice that the sale has been accepted before giving confirmation to his buyer.

A quantity of flour remains for export to Cuba from sales made under the 1943 Wheat Flour Export Program prior to its termination on June 30, 1943. Exporters may obtain a time extension for shipment of such flour by making application to an agent of the Food Administrator. However, extensions will not be granted to a date later than December 31, 1944, and claims must be filed by February 28, 1945. There will be no extension of time for exportation under either program beyond December 31, 1944.

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To assist exporters in shipping the balance of flour sold to countries other than Cuba under the 1943 program, reasonable time extensions will be granted beyond March 31, 1944, but not later than December 31, 1944. This flour is urgently needed for consumption in the countries where it was sold. Exportation has been prevented by heavy military demands on available shipping space.”

Hull