811.512337 Shipping/11–2044
The Ambassador in Cuba (Braden) to the Secretary of State
Sir: I have the honor to refer to the Department’s air mail instruction no. 4638 of November 10, 1944 (file no. 811.512337 Shipping/9–2644),48 [Page 996] concerning exemption from the 2.75 percent gross sales tax and the 1 percent railroad retirement tax obtained on behalf of the Federal Surplus Commodities Corporation on its purchases of Cuban refined sugars. The Department encloses a copy of a letter dated October 18, 1944,48 from the Commodity Credit Corporation, stating that the refined sugar purchases under reference are now being made by the Commodity Credit Corporation and requesting the Embassy therefore to undertake to obtain similar tax exemptions for that agency.
This matter has been discussed with Mr. Nelson Norregaard, the representative in Cuba of the Commodity Credit Corporation, and it is his opinion, in which the Embassy concurs, that the Commodity Credit Corporation is already exempt from all Cuban taxes in connection with its refined sugar purchases under Article 2 of Cuban Decree no. 414 of March 2, 1944 (a copy and translation of which were transmitted to the Department with despatch no. 6192 of March 4, 1944),48 which states that:
“The stipulations contained in Decree no. 14 of January 8, 1943, are made to include Defense Supplies Corporation, Commodity Credit Corporation and their agents, with respect to the invert molasses and sugars of the 1944 crop purchased by said entities, as well as with respect to the refined sugars which may be produced from the sugar of said crop for account of Commodity Credit Corporation.”
In view thereof the Embassy does not believe that it will be necessary to request of the Cuban authorities any further tax exemptions for Commodity Credit Corporation refined sugars.
Respectfully yours,
Counselor of Embassy for Economic Affairs