837.6363/578: Airgram

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

A–961. Reference is made to your A–1142 of May 27. The Embassy’s understanding of the basic pool principle requiring imports from other than pool sources to be deducted from quantities supplied by the pool is correct. ORPA, if it decides Cumex is not entitled to any distribution position in gas oil, of course could make a corresponding transfer of fuel oil business from Cumex to other pool members sufficient to compensate them for the lost gas oil business and to discourage the Cumex from importing products in which they have no position regularized by the Cuban authorities, or take other appropriate measures.

The Embassy should bear in mind that although the total quantities of petroleum products available to Cuba are not increased by such imports as the recent gas oil shipment to Cumex, the question of allocating the total petroleum product distribution among the interested companies is one for determination by the local authorities, our interest in the matter being limited to endeavoring to avoid any flagrant violation of equity.

Stettinius