837.61351/4403
The American Ambassador in Cuba ( Braden ) to the Cuban Minister of State ( Santovenia )26
Excellency: I have the honor to refer to the recently concluded negotiations during which an agreement was reached by representatives of the Cuban Sugar Stabilization Institute and Commodity Credit Corporation for the sale to the Government of the United States of America of a portion of Cuba’s sugar production of 1944. The discussions included certain matters of an intergovernmental character affecting the sugar industry of Cuba, the control of which is in the hands of Your Excellency’s Government. I now take pleasure in recording the agreements which my Government understands have been concluded in this connection.
Sugar Legislation
My Government has noted with satisfaction the statement of the representatives of Your Excellency’s Government, embodied in the Cuban Memorandum of August 10, 194327 of the Cuban Sugar Commission, that no change should be made in the sugar legislation in Cuba for the 1944 crop and that the distribution of production should be based on the existing system of quota allocations. Representatives of both the Cuban Sugar Commission and Commodity Credit Corporation [Page 178] indicated in the jointly initialed Memorandum of August 20, 194328 the importance of maintaining for the 1944 crop the sugar legislation at present in force in Cuba, with the distribution of production during that year to be based on the existing system of quota allocations.
It is the understanding of my Government that the measures adopted by Your Excellency’s Government concerning the work of handling and shipping sugar in all ports, sub-ports and shipping points of the Republic of Cuba which were placed in effect under Ministry of Labor decree No. 892 of February 22, 1943, promulgated in the Official Gazette of March 24, 1943 shall continue for the duration of the present state of war.
Wages
In a supplement to its memorandum of August 10, 1943 the Cuban Sugar Commission suggested, after consultation with its Government, an exchange of notes between the Governments of the United States of America and of Cuba, to embody the understanding of the Institute and the Corporation that it is not the intention of Your Excellency’s Government to increase above those existing on July l, 1943 the stevedoring, loading and port wages, and other charges in connection with the loading of sugar at ports, unless the export price of sugar for Cuba increases. Should any increase in such export price for Cuban sugar occur, and an increase of a general nature in wages of the sugar industry be made as a consequence thereof, stevedoring, loading and port wages may be increased in a proportion not to exceed the proportion of wage increases in the sugar industry.
My Government would appreciate receiving confirmation of the intention of Your Excellency’s Government in this respect.
Railroad Tariffs
My Government welcomes the suggestion that the reduced freight rates made effective by Decree No. 1252 of April 21, 1943 covering the shipment of sugar to other than natural ports be continued in effect for sugar produced in the 1944 crop. It will be a pleasure to receive an indication of Your Excellency’s Government’s views on this point, which was included in the Memorandum of August 20, 1943 initialed by representatives of the Cuban Commission and of Commodity Credit Corporation.
Please accept [etc.]