837.61351/9–644
Memorandum of Conversation, by the Assistant Chief of the Division of Caribbean and Central American Affairs (Scherer)
| Participants: | |
| Cuban Delegation | United States Delegation |
| Oscar Seiglie38 | Commodity Credit Corporation |
| Arturo Mañas | Earl B. Wilson |
| Senator José Casanova | Russell Burchard |
| Federico Fernández Casas | Nelson Norregaard |
| Teodoro Santiesteban | James Marshall |
| Gaston Godoy | War Food Administration |
| Amado Aréchaga | Joshua Bernhardt |
| Manuel Rasco | Gustave Burmeister |
| Alan Brannan | |
| Defense Supplies Corporation | |
| Samuel H. Sabin | |
| Foreign Economic Admin. | |
| Clarence Blau | |
| Department of State | |
| Colonel Everett Cook | |
| George F. Scherer |
Before meeting with the Cuban Delegation during afternoon of September 5, the American representatives reviewed the Cuban Memorandum of September 4,39 the principal points of which included:
- (1)
- Unrestricted crops in 1945 and 1946 in Cuba, with 225,000 to 250,000 long tons reserved for Cuban local consumption and not more than 250,000 long tons of free sugar for each year.
- (2)
- Price of 3.40 cents per pound with an escalator clause to increase the Cuban price by the amount of benefit payments to United States growers or processors.
- (3)
- All stevedoring, loading and port expenses to be for the account of Commodity.
- (4)
- Price stabilization program—an exchange of notes is to be made, assuring price stabilization for rice, lard and wheat flour for 1945 and 1946, similar to the one in effect for 1943 and 1944.
Mr. Wilson mentioned to the Cuban Delegation that he had been unable to prepare a formal reply memorandum to the Cuban proposal of September 4 but that he was ready to make certain oral comments, knowing that the Cuban Delegation was interested in proceeding to New York urgently and returning to Washington on September 9. Mr. Wilson stated that frankly he was disappointed in the Cuban Memorandum, that it did not provide a basis for further discussions, and indeed, if 3.40 cents were the Cuban low limit there would be no purpose of continuing discussions.
. . . . . . . . . . . . . .
In reply to Mr. Wilson’s comment on price and on the inability of this Government to admit Cuban sugar duty-free, Dr. Mañas replied that the basis of the Cuban price of 3.40 cents was the present price plus the difference between the subsidy to beet growers of 90 cents less 15 cents paid by this Government in extra expenses of handlings Cuban sugar. If the United States has a counter-proposal to the price of 3.40 cents, the Cuban Delegation would be glad to receive it, stated Dr. Mañas. However, if the price were no more than 2.65 there would be no use to continue negotiations.
Mr. Wilson expressed the belief that the United States Commission can offer a proposal, the terms of which will give Cuba an adequate return, but a very substantial and considerable reduction would have to be made from the 3.40 cent price.
The Cuban Delegation stated that the 3.40 cent price is not inflexible but that any “tremendous” reduction in price below it, which would be “tantamount” to 2.65 would be unacceptable to the Cubans.