837.61351/6–948

The Assistant Secretary of State for Political Affairs ( Armour ) to the Ambassador in Cuba ( Butler )

confidential

My Dear Mr. Ambassador: I have received your letter of June 91 suggesting that the settlement of various problems between the United States and Cuba be tied in with further purchases of sugar.

The Department is most anxious to effect a settlement of these problems, but I have some doubt as to the advisability of injecting all of these issues into our sugar procurement program on a quid pro quo basis. This seems to be particularly true with regard to a commercial treaty. While the conclusion of such a treaty is highly desirable, I do not believe that we should endeavor to force the Cuban Government to accept the treaty. The use of coercion might very well give rise to unfavorable repercussions in Cuba and the other American republics.

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The trade agreement violations are a source of concern to the Department and should be corrected. However, it is not felt that we should bargain with the Cuban Government in an effort to persuade it to comply with its commitments under an international agreement. The Cubans as a matter of principle should adhere to the provisions of the agreement and if these violations are not rectified, we will present the problem to GATT.

It might be possible to consider a quid pro quo strategy in the settlement of some of the problems such as the adjudicated and recognized claims, provided the volume of sugar to be procured this year will be large enough to provide adequate bargaining power. This possible approach will be given careful study in the Department and will be discussed with other government agencies. You will, of course, be promptly informed of the results of these discussions.

Sincerely yours,

Norman Armour
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