Foreign Relations of the United States, 1958–1960, Cuba, Volume VI

347. Telegram From the Embassy in Cuba to the Department of State¹

Havana, July 31, 1959—1 p.m.

281. Expect see Castro August 3 or shortly thereafter and would appreciate Department’s guidance particularly on basis conversation with Roa reported Embassy despatch 135.² There is I believe from Roa’s attitude expressed July 30³ anxiety to improve relations and possibly to take initiative to lay basis for discussion of economic cooperation. Formulation our attitude may well affect course of government here. If Castro brings up possibility of economic assistance from US, I suggest I be authorized to state that providing there is effective desire improve relations and providing forecast of Cuban resources and proposed uses thereof warrants, we would be glad at request of Cuban Government study sympathetically possibilities of cooperation within limits our resources and other commitments. Believe initial Cuban approach apt to be for very substantial and probably unrealistic credits running into hundreds of millions with international lending institutions and private banks also involved.

Compensation American land owners obviously pertinent. We should seek in my judgment compromise between demand for cash payment of aid value and Cuban proposal of 20-year bonds based on municipal tax registrations. Such a compromise would involve both valuation aspects and possible delays in expropriation beyond periods contemplated in law. Resolution of utility problems in fair and prompt manner also pertinent.

Emphasis at this time should be on necessity from Cuban point of view of forecasting resources and commitments in coordinated fashion and willingness on our side to give sympathetic consideration Cuban situation provided we can work out fair treatment for our nationals. We can obviously make no commitments at this stage but should be willing to enter upon exchanges of views at request of GOC. Such exchanges would be unpublicized and their course would obviously depend in part on general atmosphere generated by Castro’s words and actions and those of his principal aides.

In understandable event instructions this important matter do not reach me prior conversation with Castro and latter does raise possibility economical talks, I will reply matter one on which I will request instructions. This would not preclude full discussion our concern actual and prospective treatment American interests here.

Please instruct.⁴

Bonsal

1. Source: Department of State, Central Files, 611.37/7–3159. Secret; Priority; Limit Distribution.
2. See Document 342.
3. In this conversation, Roa told Bonsal that following the meeting with Castro, which he expected would take place on August 3 or soon thereafter, Roa hoped to arrange a meeting for Bonsal with the Ministers of Economy and Treasury, as well as with the President of the National Bank. (Despatch 169 from Havana, July 31; Department of State, Central Files, 611.37/7–3159)
4. In telegram 144 to Havana, August 1, the Department agreed that Bonsal could take up with Castro any of the points discussed with Roa on July 23 that he considered appropriate. Bonsal was also told that he might wish to express the hope that the protracted intervention of the Cuban Telephone Company could be ended. In the event that Castro raised the possibility of U.S. financial assistance, the Department instructed Bonsal to respond as follows: “you should limit yourself to listening sympathetically and state that you are sure your government will be interested his views and that you will report them immediately.” (ibid.)