837.61351/10–3045: Telegram

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

630. ReDeptel 617 Oct 23, 7 p.m. During brief third meeting of sugar negotiators on Oct 30 Wilson handed Cubans memorandum in reply to their 3 crop proposal dated Oct 21.

While recognizing Cuban assistance in solving critical war-time sugar problem and Cuban interest in receiving maximum future participation in US market, memorandum states that American Congress will determine sugar policy after expiration of Sugar Act at end of next year. Accordingly, no long term sugar contract can be undertaken at present.

US memorandum contained revised proposal as follows:

Entire 1946 Cuban crop to be purchased except (a) 250,000 long tons for local consumption and (b) 45,000 long tons for free export sugar.
Price, 3.675 cents per pound.
Price to be increased by amount of any tariff reduction.
Any increase in Puerto Rican incentive payment or in US ceiling price will benefit Cuba. Clarification requested concerning item “h’ of Cuban proposal of Oct 21 about loading of ships.
1946 Blackstrap molasses to be purchased at 1945 price and terms, quantity subject to negotiation.

Embassy will note revised US proposal omits industrial alcohol, escalator clause based on cost of living and food stabilization program.

Next meeting scheduled for afternoon of 31st when Cubans will comment on US memorandum.