837.5018/11–944
The Chief of the War Supply and Resources Division (Brown) to Mr. T. B. King, War Food Administration
Dear Mr. King: As you are aware, the terms of the Stabilization Agreement entered into with Cuba in conjunction with the existing contract for the 1944 Cuban sugar crop were suspended in July pending an adjustment of the situation made necessary by the increase of Cuban bread prices by two cents a pound from ten cents to twelve cents. You will recall that this Government indicated in July that [Page 950] it stood ready to reinstitute the export payments for the duration of the present Stabilization Agreement if the Cuban Government should determine it desirable to take the measures necessary to control prices in fact. Our Embassy in Habana now reports that the Cuban Government has published a decree reducing the price of bread sold direct to consumers at bakeries to ten cents a pound. The new price of ten cents, according to the report of our Embassy, will be applicable to by far the greater portion of the bread consumed in Cuba and represents an energetic step on the part of the Cuban Government to control the inflationary tendencies in food products.
In view of this, our Embassy recommends that the United States announce export payments as soon as possible on an additional 300,000 bags of wheat flour of 100 pounds each requested by Cuba. The Embassy further indicates that Cuban flour supply situation is becoming increasingly difficult and strongly urges arrangement for early shipments. The Department concurs in the Embassy’s recommendation and trusts that the War Food Administration is in a position to announce export payments pursuant to the 1944 Stabilization Agreement on 300,000 bags of wheat flour of 100 pounds each.
Sincerely yours,