Office of the Historian
  1. Home
  2. Historical Documents
  3. Foreign Relations of the United States: Diplomatic Papers, 1944, The American Republics, Volume VII
  4. Document 912

837.5018/6–2644

Memorandum by the Chief of the Division of Labor Relations (Mulliken)

Reference is made to the Cuban Embassy’s Memorandum No. 430 of June 26, 196423 requesting information regarding the wheat flour export program of the United States Department of Agriculture.

A program to encourage the exportation of wheat flour was first inaugurated on March 5, 1936 and made applicable only to exports to the Philippine Islands. On September 7, 1938 the export program was generalized and made applicable to all countries, including Cuba. In December 1941 upon the entry of the United States into the war the program was limited to countries of the Western Hemisphere and to those islands lying on or west of the 40th meridian w., and since July 1, 1943 a subsidy has been paid only on flour exported to Cuba. Requirements of wheat have increased to such an extent as a result of the war that an effort has been made throughout the past year to encourage importation rather than exportation.

The rates of payment made on exports of wheat flour have varied considerably, both from year to year and within each year. The highest and lowest rates offered on exports from gulf ports during the [Page 938] calendar years 1938 through 1943 are shown below, with rates in detail for the current year.

range of export payments on exports of wheat flour from gulf ports

Calendar year Dollars per barrel
1938  . 30 to 1. 05
1939  . 95 to 1. 55
1940 1. 00 to 1. 05
1941  . 90 to 1. 35
1942 1. 25
1943 1. 60 to 2. 00*
1944 March 30, 2. 50
April 6, 2. 90
May 1, 0

No subsidy was offered on exports of wheat flour to Cuba between July 1, 1943 and March 30, 1944 when the current year’s program was announced.29 The initial rate offered proved too low to encourage exports and it was therefore increased to $2.90 per barrel to permit the export of sufficient quantities of flour to assure the maintenance of the price ceiling in Cuba. All export payments offered since July 1, 1943, when the general export program lapsed, have been for the sole purpose of maintaining the ceiling price in Cuba.

Washington, July 12, 1944.
  1. Not printed.↩
  2. Rate to Cuba was $2.64 per barrel for the Period April 15–29. [Footnote in the original.]↩
  3. Announcement quoted in telegram 276, March 29, 1 p.m., to Habana, p. 933.↩