709. Memorandum from Chase to McGeorge Bundy, September 191
SUBJECT
- Cuba and the IMF
We have given the Fund Management the green light to circulate an information memorandum to the IMF Board Members that Cuba is in violation of IMF obligations on a number of counts—use of exchange practices without IMF approval, failure to furnish required information, failure to pay increased subscription previously agreed to, and failure to respond to the Managing Director’s correspondence; in addition, as of September, 1963, Cuba is in full 5 year default on a $25 million loan.
While the above step does not yet commit us to a course of expulsion action against Cuba, it does lay some groundwork. State and Treasury are pretty well agreed that expulsion is a good idea and will probably send a memo over here next week, which, at the least, will request White House approval to start some informal consultations with appropriate IMF members during the annual IMF meeting, scheduled to start on September 30. (It is expected that Cuba will not attend the annual meeting, although IMF action does not depend on this fact. The presence or absence of Cuba, [illegible in the original] affect the noise-level.)
- Cuba and the IMF. Confidential. 1 p. Kennedy Library, NSF, Countries Series, Cuba, General, Vol. XI (B), 9/63.↩