837.61351/4669

Memorandum by Mr. George F. Scherer of the Division of Caribbean and Central American Affairs2

According to Habana’s despatch no. 6297 of March 14 (advance copy attached)1 the Cuban Minister of State3 has proposed an exchange of notes between the two Governments in connection with the [Page 931] signing of the molasses-alcohol contract. The Embassy correctly replied in a preliminary way that the contents of the Cuban note4 were beyond the scope of the negotiations concluded in Habana.

The Embassy thereupon submitted the proposal to Washington for consideration.

The principal point advanced by the Cuban Government is a firm commitment by this Government to “adopt at the earliest possible moment appropriate measures to regulate the importation of shipments of beverage alcohol and spiritous liquors from foreign countries and United States territories and possessions” on the basis of 1943 shipments. It is recalled that the United States Commission agreed to “recommend” the establishment of such controls and it does not yet appear possible to agree to the Cuban position.

The second point of difference is a Cuban request that “the supply by Cuba of said molasses and alcohol will not result in the release of domestic alcohol of the United States …5 in order to use it in the manufacture of beverage alcohol or spiritous liquors”, which, if accepted, would in effect mean commitment by this Government not to permit a distillers holiday to make beverage alcohol.

In the third place, the Cubans ask this Government to facilitate the supplying of chemical products necessary for the production of beverage alcohol and its transportation in Cuba. I gather from the files that a commitment was made6 to facilitate the supplying of bottles and chemicals products required for packaging and distribution only.

FEA will, of course, have primary responsibility for replying to the Cuban Government. I am arranging distribution of the despatch as soon as hectograph copies are available, and I plan to keep in touch with the various agencies as to the reply to be made to our Embassy at Habana and to the Cuban Embassy’s memorandum of March 15.7

  1. Addressed to John M. Cabot, Assistant Chief, Division of Caribbean and Central American Affairs; Philip W. Bonsal, Deputy Director, Office of American Republic Affairs; and Courtney C. Brown, Adviser, Supply and Resources Division.
  2. Not printed.
  3. Presumably Jorge Mañach y Roberto, who was appointed on March 7 to succeed Emeterio S. Santovenia.
  4. Note dated March 7, not printed.
  5. Omission indicated in the original memorandum.
  6. In the American Embassy’s note No. 112, February 12, 1944, to the Cuban Minister of State; note not printed, but see bracketed note, p. 929.
  7. Not printed.