837.61351/4457: Telegram
The Ambassador in Cuba (Braden) to the Secretary of State
806. The Prime Minister in a confidential personal letter to me dated December 332 states that he has received information to the effect that the Mexican Government in conjunction with the Pepsi Cola Company and other American interests is disposed to purchase 100,000 tons of Cuban refined sugar—40,000 for the Pepsi Cola Company and 60,000 for the Mexican Sugar Institute—and to furnish Cuba in return with all the gas oil required for its agricultural diversification33 and Public Works Program. The gas oil and sugar would be transported in Mexican bottoms exclusively. The Prime Minister inquires whether such a plan would conflict with any existing regulations of our Government and dwells once more on the difficulties; experienced by Cuba due to restricted gas oil supplies.
I am informing the Prime Minister that this matter has been referred to Washington, pointing out, however, that the plan seems, of doubtful practicability as it would require our consent to the production in 1944 of an additional 100,000 tons of sugar and the earmarking of 40,000 tons thereof for a private concern; and as, in line with basic pool principles, any gas oil imported from Mexico would [Page 182] probably have to be charged to Cuba’s over-all petroleum products quota.
I would appreciate receiving at the earliest opportunity an expression of the Department’s views in the matter in order that I may reply to the Prime Minister.
Not repeated to Mexico City.