[Enclosure-Extracts]
Memorandum for the Ambassador
. . . . . . . . . . . . . .
Embassy’s Relations with the Cuban Government on
Labor Matters. In line with our Government’s policy, the
Embassy has made no attempt to intervene in labor conflicts
affecting American firms, except where (1) an official agency of the
United States Government is involved; (2) the conflict has a direct
bearing on the war effort; or (3) adequate legal protection has not
been given to American interests, or where such interests have been
discriminated against.
In such cases, the Embassy, when appropriate, has made formal or
informal representations to the Cuban Government, either through
notes to the Foreign Office or through conversations with Government
officials, including the President,41 the Minister of Labor,
and others. On the whole, the cooperation which has been obtained
from the Grau Government in these matters has not been very
satisfactory.
Recent instances in which the Embassy has sought the cooperation of
the Cuban Government in labor matters have involved (1) dismissals
of workers by the United States Commercial Company Agency, an
official agency of the United States Government, which has had to
discharge workers by reason of the curtailment and final termination
of its operations in Cuba. … (2) port workers’ strikes and
stoppages, which have delayed the dispatch of WSA42 vessels at
Cuban ports; (3) protection for established American accountants and
accounting firms in Cuba, whose continued practice in Cuba is
threatened by a recent law and by the National Association of Public
Accountants; (4) the Motembo case, involving an American naphtha
mining firm which has thus far been denied permission to liquidate
by the Cuban Government.
The last case will be further described for illustrative purposes.
The American firm, which has been engaged in drilling and extracting
naphtha gas in Motembo has been trying to liquidate and dispose of
its equipment because of continuing financial losses. The Minister
of Labor has failed to act on the company’s long standing
application for permission to liquidate. In addition, about one
month ago, following a labor conflict in the area, the Cuban
Government “intervened”
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the firm and ordered all dismissed workers reinstated and production
resumed. As a result the company has been suffering further
financial losses and has been unable to liquidate. The Cuban
Government has thus far failed to grant the company relief, in spite
of numerous notes addressed by the Embassy to the Foreign Office on
the subject and many conversations between officers of the Embassy
and various Government officials.
Conclusion. While it is undeniable that most
of labor’s gains in Cuba are the result of their legitimate
aspirations and that there is still much room for the economic
improvement and greater security of the Cuban worker, the
disquieting features of the labor movement at this stage are found
in the growing ascendancy of the Communist labor leadership—with all
the intangible implications of a Moscow dominated Communist
movement—the passive and ineffective attitude of the Government with
respect to labor excesses, an attitude which can be exploited by
unscrupulous labor leaders, and the steep increase in labor costs in
Cuba without an increase in labor efficiency, which augurs ill for
the development of Cuban industry and for the competitive position
of Cuba in the world market.
