837.51 Cooperation Program/11–644

The Ambassador in Cuba (Braden) to the Secretary of State

No. 8188

Sir: I have the honor to refer to the Department’s instruction No. 4591 of October 23, 194423 enclosing the original and copies of a letter addressed by President Warren L. Pierson of the Export-Import Bank to Dr. Raúl G. Menocal, Mayor of Habana, informing him that the credit in the amount of $15,000,000 to finance the rehabilitation of the Habana waterworks has been cancelled. The original of this letter has now been sent to Mayor Menocal.

When I informed President Grau of this cancellation before sending the letter forward to the Mayor, the President asked whether there would be any possibility of his Government utilizing this credit in the construction of country roads and other similar projects which he has discussed with the Export-Import Bank. He pointed out that only about $4,000,000 of the $25,000,000 credit remains for these projects and it was his hope that further funds might be made available.

I replied that I was quite certain that it would be impossible to utilize the $15,000,000 credit which had been granted for the Habana waterworks as this was quite separate and distinct from the $25,000,000 credit which is now being utilized by the Cuban Government. The Department will recall, however, that when Dr. Grau visited Mr. Pierson at the Export-Import Bank it was indicated that the amount of the credit, based on a careful study, might be increased beyond the $25,000,000 (now reduced to slightly less than $21,000,000 by recent repayments) authorized. Therefore, in due course it may become desirable to consider such an increase. There is no immediate rush in this matter, but it is a factor we should bear in mind for appropriate action at the proper time and, of course, the efficiency with which the Grau Administration handles projects already authorized will be an important consideration.

Respectfully yours,

Spruille Braden
  1. Not printed.