811.516 Export-Import Bank/949: Airgram

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

A–809. Reference paragraph No. 3 my telegram No. 349, April 3, 7 p.m., 1944.95 Cuban Government appears to have heard nothing from Oscar García Montes regarding progress of negotiations with Import-Export Bank but impression has been gained (apparently from other sources in Washington) that Bank is willing to give Cuban Government one more chance provided certain conditions are met, including a Comisión which will be able to function.

As no mention has been made in these indirect reports that negotiations with García Montes have likewise included demand that outstanding claims of American citizens and American corporations be liquidated in the near future, I hasten again to recommend in the strongest possible terms that this point be made one of the conditions on which extension of the line of credit by the Bank will be continued.

Department will recall (see Cuban Government’s memorandum attached to Embassy’s despatch No. 1914 of April 20, 194196) that the Cuban Government promised, before the line of credit was originally granted, to give prompt consideration to all outstanding American claims. These promises have not been fulfilled and therefore the present negotiations offer a favorable opportunity to have this pledge renewed.

In this connection I quote the following paragraph from this Embassy’s economic report No. 1116 of April 11, 1944:97 [Page 975]

“Actual cash disbursements against the 1944 regular Cuban budget totalled 28.4 million pesos during the above period (first quarter 1944), so that to date revenue receipts available for regular budgetary purposes exceed actual cash disbursements by 7.1 million pesos.”

On this basis, recorded outstanding claims of United States nationals could be paid in cash by the Cuban Government from excess revenues in about 6 months’ time.

If under the foregoing and previously recited circumstances we now fail to obtain positive action on the many long standing and legitimate claims of our citizens, we shall be in a highly vulnerable position and would be subject to the severest of criticism for our failure to protect their rights.

  1. Not printed; paragraph 3 contained a recommendation that all outstanding American claims be settled by Cuba as one prerequisite for continuation of the Export-Import Bank credit (811.516 Export-Import Bank/935).
  2. Foreign Relations, 1941, vol. vii, p. 147.
  3. Not printed.