285. Memorandum of a Conversation, Ambassador’s Residence, Panama City, July 23, 19561

PRESENT:

  • The President
  • The Secretary of State
  • Dr. Milton Eisenhower
  • Asst. Secy Holland
  • Mr. Jack D. Neal (MID)
  • President Batista
  • Foreign Minister Gonzalo Guell

After an exchange of pleasantries, President Batista expressed his concern regarding the sugar situation, pointing out that sugar comprises 87% of Cuba’s exports; therefore, the economy of the country depends greatly upon that one product. He indicated the present poor condition of the world sugar market was having a bad effect in Cuba. He is attempting to alleviate the economic situation by a public works program, but that is going slow at the present time. He stated the heavy investment of United States private capital—$400 million.

President Batista handed President Eisenhower an aide-mémoire (copy attached) making certain recommendations for improving trade relations between Cuba and the United States and a better coordinated technical cooperation program for the economic and social development of Cuba, suggesting that a special Cuban-United States [Page 833] Commission of experts be established to study these recommendations.

President Eisenhower stated he is always pleased to study all suggestions made by our sister Republic. However, the American form of government is such that it is impossible to make promises as to what we can or cannot do. The President commented that from his observation everyone is mad about the sugar situation—but that we have to work on these problems without getting angry—he emphasized that we could not take unilateral action and do as we please.

President Batista stated with reference to the Point IV Program2 he had not obtained the technical expert he felt was required. He wants an expert on crop diversification.

President Eisenhower said this was the type of information he wished to have and he would like for President Batista to set forth in a memorandum just exactly what his requirements are and that his government would get busy on the matter. President Batista said he would get this information to Assistant Secretary Holland.

In a discussion of the merits of technical assistance by the United Nations and that by the United States, President Batista expressed his preference for United States assistance since it provided greater facilities.

Secretary Dulles stated we had found from our experience in other parts of the world that bi-lateral agreements on Point IV were preferable to the broad coverage of the UN.

President Eisenhower stated the press was waiting outside and desired photographs if he had no objections. President Batista stated it would be a pleasure for him.

Photographs were taken on the steps of the Embassy entrance.

[Page 834]

[Attachment]

REPUBLIC OF CUBA

Executive Power

Aide-Mémoire3

Major General Fulgencio Batista y Zaldívar, President of the Republic of Cuba, presented his compliments to General Dwight D. Eisenhower, President of the United States of America, and expressed his pleasure at having had the opportunity to meet and converse with him personally during the Meeting of American Chiefs of State that has just been held in Panama.

Although the Republic of Cuba fortunately does not at present have any serious problem pending in its relations with the United States of America, President Batista was grateful for the opportunity offered him by President Eisenhower to exchange impressions on the possibility of improving their relations even more.

This can, in President Batista’s opinion, be done by:

1.
Studying the terms of trade between the two countries, with a view to making them mutually advantageous through the adoption of such measures as may be considered adequate.
2.

Favoring Cuba’s plan for establishing new customs tariffs, more modern and technical than those that have been in force since 1927, but somewhat tentative in character, with the object, now, of simplifying and increasing Cuba’s foreign trade, as far as possible avoiding losses in foreign exchange, and promoting the economic development of the country.

These new tariffs are to come into force at the expiration of the present GATT contractual period, December 31, 1957, and renegotiation of the commercial treaties that Cuba has signed will be arranged.

The most important of these agreements is that with the United States, which should be re-examined in the light of the new Cuban tariffs, when the latter are ready to come into force, while maintaining the existing preferential treatment between Cuba and the United States of America, so that the commercial relations between the two countries may continue to progress at their traditional pace and to our mutual advantage.

3.
Studying the possibility of better coordinated and more efficient technical cooperation in the economic and social development of Cuba; studying ways in which the financial contributions of Cuba [Page 835] to the International Monetary Fund and the International Bank for Reconstruction and Development can yield some profit for the Republic of Cuba; and seeking to promote the movement of private and public capital toward the economic and social development of Cuba.

In order to achieve these objectives, it would be advisable to appoint a Cuban-American Commission made up of a small number of experts from the competent institutions in both countries, to study confidentially and separately the afore-mentioned objectives, in their countries, and to consider jointly and alternately in the respective capitals, from time to time, the direction to be taken in their studies, the results of their work and the recommendations that should be made to their Governments, without prejudice, as a supplement, rather, to the organization and functioning of the dynamic procedure so foresightedly set forth by President Eisenhower in yesterday’s speech, with the proposal to give the OAS an instrument of effective and concrete action.

  1. Source: Department of State, Conference Files: Lot 62 D 181. Official Use Only. Drafted by Neal. The source text bears Holland’s initials. A handwritten note on the source text indicates that William B. Macomber, Special Assistant to the Secretary, approved the memorandum for distribution. This conversation occurred after the meeting of the American Presidents in Panama City on July 21–22; see Documents 109 ff.
  2. For documentation of the administration of this technical assistance program by the Foreign Operations Administration (FOA), established on August 1, 1953, see Foreign Relations, 1952–1954, vol. i, Part 1, pp. 227 ff.
  3. The source text is a translation done by the Department of State’s Division of Language Services.