837.61351/4–849: Telegram

The Secretary of State to the Embassy in Cuba

confidential

159. Cuban sugar del1 inf Agric today that because of political considerations involved and Cuban Govts impression CCC would buy 1,200,000 tons, Gans2 will take up sugar procurement problem through official channels. They are fearful of repercussions among labor, particularly communist elements.

Cuban del said their Govt would not consider any sale for less than four cents nor any price clause which would protect CCC in event world price drops below that level. They explained price lower than four cents would require wage reduction which from political viewpoint would be impossible. Although discussions specific price had heretofore been avoided, Myers3 in previous meeting had expressed view world price Cuban sugar was fictitious and did not reflect real price.

Dept would appreciate any comments Emb may have as to how Cuban Govt received erroneous impression CCC might purchase 1,200,000 tons.

Acheson
  1. In telegram 150, April 4, to Habana (not printed), the Department had transmitted the text of a press release issued by the Department of Agriculture and the Cuban Sugar Stabilization Institution announcing the opening of talks with respect to possible purchase by the Commodity Credit Corporation (CCC) of sugar to meet the requirements for civilian feeding in occupied areas and in certain of the nations participating in the ERP. The press release indicated that the current interest of the CCC was in the purchase of approximately 400,000 tons of sugar. (837.6135/14–449)
  2. Oscar Gans, Appointed-Ambassador of Cuba in the United States, presented his credentials to President Truman on April 20, 1949.
  3. Lawrence Myers, Director of the Sugar Branch in the Department of Agriculture, was the principal representative of the CCC in the sugar talks.