837.51/11–149
The Ambassador in Cuba (Butler) to the Secretary of State
No. 809
It is understood that the Cuban National Bank is interested in negotiating with the Treasury Department an agreement for a currency stabilization loan of 50 million dollars in the near future, although in other quarters it is felt that such a loan may be unnecessary in view of Cuba’s gold stock.
If we are disposed to enter into such an agreement1 should it be proposed by Cuba, it is respectfully suggested that this opportunity be taken to obtain from the Cuban Government settlement of several long-standing problems.
In return for assistance in stabilizing Cuban currency the Cuban Government should be prepared to stabilize conditions in Cuba in a manner that affords some assurance of stability for American investments in this country, at present and in the future. In that connection it is important that the Cuban Government restore its own credit-standing and support its own Courts to the extent of paying some $1,300,000 in American claims adjudicated long ago by such Courts. If enabling legislation is required, the President of Cuba should request such legislation of the Congress, which is controlled by his administration, and the payment of such claims should be provided for in the budget. There should also be a definite commitment by the Cuban Government to liquidate satisfactorily other legitimate American claims that have been pending for years.
[Page 646]Also to stabilize conditions in Cuba in a manner that will attract American private investment along the lines of President Truman’s “Point Four” program, the essential features of the proposed Treaty of Establishment and Economic Cooperation2 should be incorporated in an undertaking that can be quickly approved and put into effect.
There are also other long-standing problems with Cuba that contribute to friction and ill-feeling, and which should be corrected on the basis suggested above: the Seatrain problem (despatch No. 564, July 25, 1949; Embassy’s A–1185, September 15, 1949); the public accountants problem (despatch No. 694, September 13, 1949); the Havana Electric Railway problem (Embassy’s A–1112, August 1949); the cancellation of Decree No. 4504 (Department’s A–384, July 22, 1949); the cancellation of Decree No. 4166 (despatch No. 579, July 27, 1949); elimination of discrimination regarding the tax on refining of crude petroleum (Department’s instruction No. 34, February 11, 1949); elimination of discrimination regarding gross sales tax on lumber (despatch No. 367, May 5, 1949) and on other products (despatch No. 242 of March 24, 1949 and No. 168 of March 4, 1949); modification of the Land Lease Law (Law No. 7 of 1948) as outlined in despatch No. 915 of November 26, 1948.3