837.6363/556: Airgram
The Secretary of State to the Ambassador in Cuba (Braden)
A–800. Reference your despatch no. 6706 of April 24. The Department and the Essential Requirements Committee agree entirely with the attitude taken by the Embassy in connection with the request of the local pool committee for the Embassy’s sponsorship of their proposal for the granting to Cuba of a national economy essential of 9,500 barrels of gas oil.
As advised in confidential telegram sent you today,78 no consideration can be granted to requests for essential allotments originating with pool committees.
[Page 967]In addition to the present petition violating the foregoing principle, it is evident that the petroleum companies are motivated in no small degree by the desire to avoid the commercial repercussions which they would feel if the proposed and approved exchange of six million gallons of gasoline from Cuba civilian quota for a like quantity of gas oil is made.
The obvious remedy for this situation, to the extent which it may really require remedy, is for the companies to petition the RPA79 for suitable adjustment in gas oil and possibly gasoline selling prices and not to endeavor to discourage an operation which has evident advantages to the Cuban economy.
For your confidential information, gas oil together with kerosene are in the most critical supply situation of all the petroleum products and it is necessary to exercise a very close control over the granting of any additional allotments. In view of this situation, the Essential Requirements Committee does not believe it will be possible to authorize any additional national economy essentials for gas oil until Cuba has availed herself of the gas oil for gasoline exchange and it has become evident that the exchange does not completely solve Cuba’s economically essential requirements for gas oil.