800.8836/1228
The Ambassador in Cuba ( Braden ) to the Secretary of State
[Received March 18.]
Sir: Supplementing the Embassy’s air mail despatch No. 6158 of March 2, 1944 (File No. 815.6),66 in connection with the concessions of the American-owned terminal and warehouse companies in Cuba, I have the honor to enclose, as of possible interest to the Department, a copy and translation of the decision handed down by the Habana Audiencia Court on February 22, 194466 (not February 21 as erroneously stated in the Embassy’s despatch No. 6158), suspending the application of that provision of Decree No. 2 of January 3, 1944, which prohibited the terminal companies from increasing their tariffs in order to offset the 15 per cent wage increase which that decree established.
There are also enclosed a copy and translation of a letter dated March 1, 1944,66 from Messrs. Lazo & Cubas, the attorneys for the United Fruit Company, commenting on the decision under reference, which, in their opinion, has tended materially to strengthen the terminal companies’ position vis-à-vis the Cuban Government.
The Audiencia’s decision has been appealed by the prosecuting attorney. If, as the attorneys for the terminal companies seem to expect, the Audiencia refuses to admit the appeal, the companies, on posting a $10,000 bond, may proceed to increase their tariffs within the limits set forth in their respective concessions, pending a final decision in the matter by the Cuban Supreme Court.
Respectfully yours,
Counselor of Embassy for Economic Affairs