263. Memorandum From Secretary of Defense McNamara to President Johnson1

The following is the brief summary you requested of actions taken by the U.S. and U.K. to place economic pressure on Cuba. I am inclosing a detailed list to give you a more precise and complete picture of U.S. actions.2

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United States

a.
Prohibited unlicensed exports to Cuba except for non-subsidized foodstuffs and medical supplies. (Licenses are not normally granted.)
b.
Established embargo prohibiting import of goods of Cuban origin.
c.
Prohibited Americans from having financial transactions with Cuba and blocked Cuban assets in the U.S.
d.
Eliminated U.S. air and surface links with Cuba.
e.
Exerts bilateral and unilateral, official and unofficial pressure on foreign countries and firms to reduce trade with Cuba and cut air and surface links. For example, U.S. has terminated aid to countries which failed to take steps to stop ships and planes from participating in Cuban trade.3
f.
Reduced dollar flow through Guantanamo Naval Base by Cuban employee reductions and termination of retirement pay to Cuban Civil Service employees.

As a result of these actions, U.S. exports to Cuba fell from $547 million in 1958 ($223 million in 1960) to $37 million in 1963 (of which $36.4 million was for the Bay of Pigs prisoner exchange). Imports to the U.S. from Cuba fell from $527 million in 1958 ($357 million in 1960) to $1 million or less in 1963.

United Kingdom

a.
Made minimal informal representations to shipowners discouraging further participation in Cuban trade.
b.
Discourages Cuban air operation to the U.K. and inspects Cuban aircraft upon landing on U.K. fields.
c.
Denies use of its Caribbean dependencies as air transit points.

U.K. exports to Cuba fell from $26 million in 1958 ($21 million in 1960) to $6 million in 1963. U.K. imports from Cuba amounted to $50 million in 1958 ($22 million in 1960) and $35 million in 1963.

Robert S. McNamara
  1. Source: Washington National Records Center, OSD Files, FRC 330, 69 A 7425, Cuba 381, May–July 1964. Secret.
  2. The Presidentʼs request has not been found, but was evidently issued in order to prepare for a meeting with British Foreign Secretary Butler on May 4. Topol 1696 to Paris, May 4, reported that at this meeting the “question of British trade with Cuba, including credit guarantees, was raised by President and Secretary in vigorous terms” in private meetings with Butler. (National Archives and Records Administration, RG 59, Central Files 1964–66, POL 1 CUBA–US)
  3. A detailed 6-page summary of U.S. economic pressures and legislative actions against Cuba, attached but not printed, included the report that, under Section 620(a)(3) of the Foreign Assistance Act of 1961, as amended, enacted December 16, 1963, “United States aid was terminated to countries which failed to take appropriate steps by February 14, 1964, to prevent their ships and aircraft from carrying all goods to or from Cuba. (UK, France, and Yugoslavia were denied aid; Morocco and Spain were considered to have taken ‘appropriate steps.’)”