837.61351/4179: Telegram
The Acting Secretary of State to the Ambassador in Cuba (Braden)
798. Agreement reached today with Cuban Sugar Commission11 which the latter will recommend favorably to the Cuban Government. It was decided that the safety clause would stipulate that increases in the United States’ ceiling price up to the first 44 points12 would be equally shared by the Commodity Credit Corporation and the Institute; any increase more than 44 points to be for the benefit of the Institute. Agreement was also reached for an addition to Article V (f) of the 1943 contract regarding internal transportation costs.
There will be sent to you shortly a draft press release to be simultaneously released at Habana and Washington at a time not yet determined.
The Cuban Commission plans to return to Habana tomorrow having expressed its appreciation of the friendly atmosphere in which the negotiations were conducted.
- Not printed; this agreement was drawn up on August 20 as a “Memorandum of Principles Agreed upon by Commodity Credit Corporation and the Cuban Commission for the 1944 Cuban Crop Purchase Contract,” and was initialed by representatives of the Cuban Sugar Commission and of the Commodity Credit Corporation. It stipulated that the 1944 Cuban crop purchase agreement would follow the provisions of the 1943 Cuban Crop Purchase Agreement, subject to certain alterations involving (1) size of crop and quantity of sugar syrups, (2) safety clause for price increases, (3) depreciation allowances, (4) payment, transportation, and insurance, et cetera. (837.61351/4179)↩
- 44 cents per pound.↩