Foreign Relations of the United States, 1969–1976, Volume E–11, Part 1, Documents on Mexico; Central America; and the Caribbean, 1973–1976

151. Telegram 168092 From the Department of State to the Embassy in Honduras¹

Washington, August 23, 1973, 2107Z.

168092. Subject: Sugar Purchase.

1. Lazar called Ambassador Galvez morning August 23 and stated we had just received news of Bennaton’s announcement re Cuban sugar purchase. Lazar told Galvez this had caused quite a stir and we were wondering, if true, whether Batres had known about it during August 22 conversation with Shlaudeman. He pointed out to Galvez that if Batres had known, and given fact that this would seem to be a clear-cut violation of OAS sanctions, this raised serious questions regarding significance and seriousness of Batres’s apparently firm comments to Shlaudeman about the need to follow a strictly legal approach on the Venezuelan initiative. Galvez stated he was unaware of transaction but would query Batres and call back.

2. Galvez called back several hours later, having put Batres on train for New York. He said that Batres did not consider this to be an important matter, that GOH intended to downplay it and hoped we would treat it in like manner. Galvez reported Batres as saying that GOH had shopped for sugar, and that Cuba had offered best price by 5 to 15 percent. He also said they could have arranged transaction through a third party to disguise it, but had decided not to do so both because they didn’t think it was anything to disguise and because it would have involved additional expenses.

3. Regarding legality of transaction under OAS sanctions resolution Batres takes position that resolution permits supplying foodstuffs, medicines, and other humanitarian assistance to Cuba and therefore mutatis mutandis must allow for purchases of foodstuffs from Cuba in cases of serious shortages such as present drought-caused shortage of sugar in Honduras. Batres emphasized this transaction had no effect on GOH position on the Venezuelan initiative which was exactly as he had set it out in August 22 conversation. He stated that this was a one-time transaction and that there were no plans to establish commercial relations with Cuba. Batres pointed out that the prices of some basic foodstuffs in Honduras are rising (he singled out wheat and bread) and it was politically important to keep the price of sugar down.

4. Lazar pointed out that it was all well and good for Batres to say that GOH did not consider this an important issue but that we weren’t sure that reaction within USG would be all that low-level and that initial reaction was one of surprise and concern.

Rogers

1. Summary: Responding to a Honduran purchase of Cuban sugar, Director of Central American Affairs Lazar met with the Honduran Ambassador and sought assurances that his government would follow through on its commitment to oppose a Venezuelan initiative to lift OAS sanctions against Cuba.

   Source: National Archives, RG 59, Central Foreign Policy File, [no film number]. Confidential; Immediate. Drafted and approved by Lazar on August 23. Repeated to San Salvador, Guatemala City, San José, and Managua. The Venezuelan initiative on Cuba is described in Document 275. In telegram 167208 to Tegucigalpa, August 22, the Department stated that Batres had told Shlaudeman that his government opposed the Venezuelan initiative but had not mentioned the Honduran purchase of Cuban sugar. (Ibid.) In telegram 168889 to Tegucigalpa, August 24, the Department instructed the Embassy to urge López to reverse the transaction, warning that it could affect the Honduran U.S. sugar quota. (Ibid.) In telegram 3472 from Tegucigalpa, September 11, the Embassy reported that Lazar told Batres the purchase “might well create problems in future between two governments in ways difficult to control.” (Ibid.)