837.61351/2419
The Ambassador in Cuba (Messersmith) to the Under Secretary of State (Welles)
Dear Sumner: I have not written you concerning the general situation here since my return as I wished to await certain developments, but I will no longer delay, and give you a brief if somewhat sketchy picture.
The delay in the sugar arrangement being completed is not due to any lack of interest by the Government, or even of the industry. I need not tell you, who know the situation here so well, that such a question always brings into play certain interests which may have no direct connection with the matter. The Government has worked effectively. The hacendados have made no difficulty. The colonos are making difficulty because very egotistically they would like to use the legislation which has to be enacted in connection with the sugar arrangement, and which will of course include renewal of decree-law 522, as an opportunity to get parity with the hacendados in the Sugar Institute. In a way to give them such parity could be considered as a substantial alteration of 522, and it is an alteration which I hope we will not be asked to approve.
Parity for the colonos in the Sugar Institute might mean trouble in the future in an organization which has, on the whole, functioned effectively. As it is now, the large mill owners, the small mill owners, and the colonos, have equal representation in the Institute. This is fair and proper, as it represents relative interest. The colonos want to get a position in the Institute to which they are not relatively entitled, and I can see that with their having parity we might have all sorts of trouble in the future.
The hacendados and colonos have given their formal approval to the Government to the sugar arrangement. A small group is now preparing the legislation which will have to be enacted by the Congress. The colonos and hacendados were prepared to ask the Government to accept the arrangement immediately, and work out the details of the law and with the bank later. Cortina and Saladrigas49 took the attitude that everything would have to be worked out, including an acceptable draft bill for the Congress, which was satisfactory to us, before any announcement could be made. This is characteristic of the helpful attitude which Cortina and Saladrigas have taken recently. Both of them are eager that their relations with us should be [Page 234] on a correct and sound basis, and they want any misunderstandings or difficulties avoided. I hope to have a draft of the law in a day or two so we can submit it to the Department, and after we say that it is satisfactory then a formal announcement can be made by the bank and by the Cuban Government that a sugar arrangement has been concluded.
I think there will be no difficulty in getting the authorizing act, which includes the renewal of 522, through the Congress. Of course, there are those who do not like the renewal of 522, nor the using of the 6 cents a bag tax for the sugar arrangement, but the arrangement is so obviously necessary that I am confident that, although there will be some voices in the Congress against the bill, it will be carried.
I am sure that this sugar arrangement will be the most constructive thing that we could do in the Cuban situation now, and it is most important that it should go through, for without it there would be economic distress in the country districts within three or four months, and I fear that this would result definitely in political disorders. If we can get this sugar arrangement through, it, together with the increased demand for molasses, will help to stabilize the economic situation until we can get some constructive action on credits for agricultural diversification and public works.
I get it from every side that Cortina and Saladrigas have been most helpful, not only in this sugar arrangement, but with respect to our relations in general and to developments here. They are the best men now in the Batista50 Government. Cortina has shown an extraordinarily meticulous desire to keep everything on a sound and constructive basis. Saladrigas is helping him. Casanova51 has on the whole been helpful, but he remains Casanova, and I have had great difficulty in keeping him down on this question of molasses. …
[Here follows a discussion of other matters, mostly Cuban internal political conditions.]
With all good wishes,
Cordially and faithfully yours,
P. S. After reading this letter I think I should say that the second paragraph on page 2 may be a little too optimistic, as there may be some difficulty in getting the authorizing act for the sugar arrangement through Congress. The colonos are behaving very badly. Most everyone is really pleased with the sugar arrangement and wants it to go through. The colonos, however, are trying to use this opportunity to get parity in the Sugar Institute. … The hacendados are [Page 235] in a weak position because, although they are right in the attitude they are taking, they represent “capital” interests.
It is this difficulty over parity which is holding up the formal acceptance by the Government of the sugar arrangement and its completion. So far as the operation itself is concerned, there is agreement and no serious question. I think it is important that this question between the hacendados and colonos over parity be worked out before the bill is introduced in the Congress. Casanova is one of the very few hacendados in the Congress, while in the House there are some 40 colonos and in the Senate I believe 9. If this matter is not ironed out before the authorizing bill gets to Congress the colonos will try to fight it out there, and they will have popular support. One amendment leads the way to others, and the whole bill might be amended in such a way as to make it unacceptable to us and prevent the completion of the sugar arrangement. I still believe this matter will be worked out, but I wanted you to know what the delay is due to and that it has nothing to do with the arrangement itself.