541. Memorandum of a Conversation, Department of State, Washington, June 30, 19601
SUBJECT
- Committee’s Report on Cuba: Latin American Consultants, Business Advisory Council
PARTICIPANTS
- Members of the Committee of Consultants on Latin America, Business Advisory Council:
- Mr. Simon Strauss, Chairman of the Committee
- Mr. Sam Baggett, Formerly General Counsel, United Fruit Company
- Mr. T.H. Tonneson, Standard Oil of New Jersey
- Mr. F.T. Mitchell, First National City Bank
- Mr. John Burke, Department of Commerce Representative, BAC
- Representatives of the Department of State:
- The Under Secretary
- ARA—Mr. Rubottom, Assistant Secretary
- E—Mr. Mann, Assistant Secretary
- L—Mr. Hager, Legal Adviser
- ARA:CMA—Mr. Vallon, Deputy Director
- ARA:CMA/C—Mr. Torrey
After the exchange of amenities, Mr. Strauss commented on the contents of the report on Cuba which was prepared by the Committee of Consultants on Latin America of the Business Advisory Council.2
[Page 974]Mr. Strauss stated that the report was not prepared for publication nor was it the intention of his Committee to make it widely available. He said that it would be made available to other Government agencies should the Department approve. He stated that the full Committee had seen and approved the report, and, in fact, each of the 21 members had received a copy. The report was also reviewed by the Chairman of the Business Advisory Council, but, because of the time element involved, the report does not carry the endorsement of the Council.
Mr. Strauss then briefly outlined eight recommendations of the Committee concerning action that might be taken by the Department with respect to the Cuban situation:
- 1.
- The United States should join with other countries of this hemisphere to expose to the world the Communist orientation of the present Government of Cuba.
- 2.
- The United States should present a strong note to the Cuban Government on the problem created by the expropriation of properties in Cuba without the benefit of just, adequate, and effective compensation.
- 3.
- The United States should accelerate its campaign of truth to the Cuban people. Radio broadcasting was suggested as the most effective means of accomplishing this objective.
- 4.
- The United States should consult with the Latin American countries with the end of bringing the Cuban situation before the Organization of American States.
- 5.
- Action should be begun at once toward the elimination of the premium price now being paid for Cuban sugar imported into the United States under the sugar quota. It was suggested that the proposed sugar legislation giving the President discretionary authority to alter the quota might also provide for the purchase of sugar by the Commodity Credit Corporation.
- 6.
- Exchange and trade controls should be imposed to eliminate Cuba’s dollar income much of which is being used for the purchase of armaments. In this connection, it was suggested that the Trading with the Enemy Act might be utilized.
- 7.
- The United States should aid and encourage opposition elements to over-throw the Castro regime and establish a democratic form of government in Cuba.
- 8.
- A “White Paper” should be issued to show that Cuban aggressions threaten the peace of the Hemisphere.
In response to a question, Mr. Baggett assured Mr. Dillon that the Cuban sugar interests fully support the proposal that the premium above the world price should be eliminated with respect to sugar purchased from Cuba.
Mr. Strauss stated the Committee’s belief that the most important recommendation contained in its report concerns increased propaganda activities on the part of the United States. Mr. Dillon replied that the Department has given very serious consideration to the use of [Page 975] radio to disseminate the truth to the Cuban people. He added, however, that there are certain complicating factors connected with the use of commercial broadcasting stations for this purpose. He mentioned that the WRUL shortwave broadcasts emanating from Boston are considered very successful and that there are reports that Cubans group clandestinely to listen to these broadcasts. He also mentioned reports of a new station operated by private interests on Swan Island which is now broadcasting on an experimental or “testing” basis. He added that it is possible that this station may soon beam its news and other programs to Cuba.
Mr. Dillon commented briefly on the status of the sugar legislation indicating his opinion that the Senate will approve, by resolution, that part of the sugar bill relating to the Presidential authority to cut quotas in order to expedite action until the Congress re-convenes following the party conventions.
Mr. Rubottom stated that the Department has no objection to the committee making its report available to certain other Governmental agencies, specifically mentioning that the report would be of value to Secretary of Treasury Anderson.
Mr. Mann expressed a fear that the report may have already been too widely distributed stating that the recommendation concerning the overthrow of Castro would most certainly be damaging to the BAC and the United States should it in any way become public information. Consideration will be given to recalling copies of the report sent to the 21 members of the Committee.
Mr. Baggett stated that he understands why the Department could not support the request of industry sources for a letter concerning the acceptance of bonds in payment for expropriated properties and at the same time retain a claim for future adjudication. He asked, however, if the Department could not provide a letter or some other document indicating that a promise of payment does not constitute payment. Mr. Hager stated that this will be considered.