837.001 Prio Socarras, Carlos/12–748
Memorandum by the Acting Secretary of State to President Truman
The Cuban Foreign Minister has informed Ambassador Butler of several topics that President Prío desires to discuss during his visit [Page 571] to Washington this month.1 A list of these topics, together with a summary of each, is submitted below:
- 1.
- Larger and Stable Share of United States Market for Cuban Sugar. Cuba’s share of the United States sugar market under the Sugar Act of 1948, which expires in 1952, seems relatively fair and reasonable. This Government is grateful for the role played by Cuba during the war in furnishing sugar and will, of course, continue to recognize Cuba’s historical position in this market. It is considered most unlikely, however, that sugar legislation more favorable to Cuba than the 1948 Act will be enacted within the foreseeable future.
- Cuba has benefited materially this year from Commodity Credit Corporation purchases of sugar (1,238,000 tons) for use in occupied areas, and from European sugar procurement financed by ECA (approximately $35,000,000). It is anticipated that Cuba will benefit from these programs next year, although it is not known at this time how much sugar will be required.
- 2.
- Technical and Economic Aid. This Government will be pleased to give careful and sympathetic consideration to any Cuban request for technical and economic aid. It is hoped, however, that the Cuban Government will take steps to create a more favorable atmosphere for the investment of United States capital by eliminating some existing measures which tend to discourage such investments.
- 3.
- Cuban Desire to Maintain Preferential Tariff on Sugar. Consideration of tariff preferences is required of countries engaging in trade-agreement negotiations under the procedures established by the Contracting Parties to the General Agreement on Tariffs and Trade. At the request of several countries, sugar appears among the products listed by the United States for possible tariff concessions in the trade-agreement negotiations to be held with eleven countries at Geneva next April. If a reduction in duty on sugar were granted to another country, it would have the effect of reducing or eliminating the tariff preference which Cuba now enjoys. However, so long as the United States import quota system for sugar is in effect, Cuba receives no economic benefit from this preference.
- No final decision can be made regarding the Cuban preference on sugar until the negotiations take place at Geneva. This Government, however, will gladly give full consideration to any representations which the Cuban Government may wish to make concerning this preference both before and during the negotiations. Cuba will, of course, be represented at the negotiations, and there will be consultation between the United States and Cuban delegations.
- 4.
- Aid Cuba in Reducing Prices by Making Available Larger Supplies of Staple Foods and Fertilizers. It is anticipated that the United States will be able to supply Cuba with greater quantities of fats and oils, including lard, during 1949 as compared with 1948. Every effort will also be made, within the limitations necessarily imposed by scarcity and world demand, to meet the requirements of Cuba with respect to other commodities now in short supply.
- 5.
- Cuba’s Cooperation in Case of War by Treaties and Alliances. President Prío may repeat the suggestion recently made by the Cuban Foreign Minister that it would be desirable to include Latin American countries in the projected North Atlantic Security Pact. While appreciating the desire to be of assistance, which is believed to be sincerely motivated, the Department recommends that no encouragement be given to this idea. It is believed that Cuba and other Latin American countries can best contribute to peace and security through the provisions of the Rio Treaty. President Prío has informed us that he hopes Cuba will have ratified the Rio Treaty before his arrival in Washington.
It is suggested that you may wish to bring to President Prío’s attention two matters which are of considerable interest to this Government. One is a Treaty of Friendship, Commerce and Navigation which we have been trying to negotiate with the Cuban Government for the past ten years. The principal immediate objective of such a treaty is to enable American business concerns to bring into Cuba a reasonable number of American technicians and specialists, but the important long-term objective is to obtain a comprehensive expression of the Cuban attitude toward foreign interests which will increase the confidence of American investors and businessmen and thus stimulate further development.
The other item of interest involves the long pending claims of American citizens amounting to approximately $9,000,000. Many of these claims have actually been adjudicated by Cuban courts and others have been recognized by agencies of the Cuban Government.
Neither the claims issue nor the treatment accorded American business firms is a problem which the Cuban Government should find difficult to resolve. However, they are problems which from time to time are aggravating and are not in harmony with the friendly and extensive commercial relations between the two countries.
- For statements concerning the visit of the Cuban President in the United States, December 8–11, see Department of State Bulletin, December 12, p. 743, and December 19, p. 778.↩