837.61351/3–1645: Telegram

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

161. Sugar discussions with Cubans on March 14 resulted in agreement for 70 million gallons of blackstrap molasses at 13.6 cents a gallon plus substantial quantities of industrial alcohol at 65 cents, the details of which will be made available to the Embassy.

CCC73 then reviewed certain unsettled topics concerning sugar; the amount of export sugar and local consumption sugar, licensing of candy shipments (no decision reached hi this connection), escalator clause on the cost of living, stevedoring costs.

In connection with stevedoring CCC is most reluctant to assume the burden of the higher freight rates caused by recent increases in wages to port workers. It is also disinclined to agree to an exchange of notes. However, the Cubans are insistent on these points and discussions have been recessed until March 19 or 20 to permit each commission to review this item. Your views would be appreciated.

Discussions on stabilization were initiated on March 15 with the Cuban technical experts although no progress was made since the Cubans were more eager to discuss the need for higher allocations than the details of a stabilization agreement.

  1. Commodity Credit Corporation.