811.516 Export-Import Bank/989: Airgram
The Ambassador in Cuba ( Braden ) to the Secretary of State
[Received June 15—8 a.m.]
A–1264. See Embassy’s airgram A–1173, May 31, 12 noon. Embassy confidentially informed that President Batista has now seen draft amendatory agreement recently sent to Oscar García Montes by Export-Import Bank. President stated that he could not sign such a document and that, in any event, question of cancellation must be decided by his successor. Batista plans to pay all outstanding amounts due the Bank on October 1, 1944 (total will be something over 3 million dollars) and thus leave Dr. Grau free to take such action as he may desire. Embassy understands Grau will be advised of this decision so that he may have complete background when he discusses the situation with Export-Import Bank in Washington.
Members of the Commission intend to submit their resignations to Grau on October 10 as they feel that, having been appointed by Batista, they should leave Grau free to make such changes as he may desire.
Embassy informed by Consulting Engineer that the contracts between the Commission and the contractors specify that the money to be paid them is from the loan granted Cuba by the Export-Import Bank. Therefore the cancellation of the line of credit without written request or agreement from the Cuban Government would immediately result in serious criticism of the Export-Import Bank by the contractors. I hope that the Department is keeping the Export-Import Bank fully informed of contents of my various communications so that Bank will take no further action without consultation with me.