[Enclosure]
Memorandum Prepared in the Office of the
Commercial Attaché
Habana, January 20, 1934.
Subject: Revision of the Reciprocity Treaty.
It is our feeling that the proposed revision of the treaty of
commercial reciprocity between the United States and Cuba should be
negotiated in Habana rather than in Washington; it being understood,
however, that the Department of State will be kept informed of
developments and that the general provisions will be prepared in the
Department of State with the cooperation of the Embassy.
Should negotiations be conducted in Washington, it would be necessary
to transfer to the Department of State the vast amount of material
available in the Embassy. This includes useful reports based upon
conferences with persons engaged in import and export trade,
industry and agriculture, letters, special studies, reference books
and charts. Moreover, the Cubans would be required to do likewise.
So as to
[Page 109]
insure practical
revision of the treaty, it would be essential to send to Washington
the four members of the staff in the office of the Commercial
Attaché who have specialized in this work, all at considerable
expense and impairment of efficient functioning of the Embassy.
The office of the Commercial Attaché of the Embassy has prepared
considerable information on the subject, most of which was used as
the basis for preliminary discussions with officials of the Cuban
government at the meetings which took place last year. Since then,
additional data have been compiled, and new ideas have been
formulated. This material has guided the sub-committee of the
Inter-Departmental Committee in Washington in its study of the
proposed revision of the treaty. The findings of the sub-committee
are useful, but we do not believe that a duplication of effort would
be justified during the actual negotiations. We do feel, however,
that the experience of experts on the Inter-Departmental Committee
in Washington is such as to more than justify the preparation of the
general provisions there, after an exchange of ideas with the
Embassy.
It is obvious that the [sic] during the
negotiations, many problems will arise which will make it necessary
for our negotiators to discuss with reliable commercial contacts.
This would be very difficult in Washington, but would be relatively
simple in Habana in view of the fact that the office of the
Commercial Attaché is in touch with practically all the important
business men in this country, whether Cubans or foreigners. It is
within the realm of possibility that in the course of negotiations
price changes, new competition or other disturbing factors may
arise, and that there might be some delay in bringing them to the
attention of our negotiators in Washington; while in Habana they
would be known to our negotiators at once.
While it would be possible for the Embassy to elaborate on the
reports on domestic industries, which have been submitted to
Washington, from time to time, it is obvious that the negotiators
should be men who are thoroughly familiar with conditions of the
country. The members of the staff who would be delegated to
negotiate the commercial treaty have a full knowledge of conditions
in Cuba, and are well qualified to distinguish between natural and
artificial industries and the amount of tariff protection which they
should enjoy.
It would be more advantageous and economical for the Cuban government
to negotiate the commercial treaty in Habana. The latter is very
important, in view of the depressed financial condition of the
government. Moreover, as the basic data are available here, actual
negotiation of the commercial treaty would be expedited.
The staff of the Commercial Attaché has been kept intact in
anticipation of the revision of the commercial treaty in Habana. Two
members of the staff, who received their notification of separation
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from the service last
year, have been retained for the express purpose of assisting in
revision of the treaty. We believe that their participation in the
meetings with the representatives of the Cuban government will be
extremely valuable and practical.
In brief, we are confident that if the negotiation [is?] carried on
in Habana, that revision of the treaty would be expedited and that
it would be more economical and practical for Cuba and the United
States.
