837.61351/4241
Memorandum of Conversation, by Mr. George F. Scherer of the Division of the American Republics
| Participants: | |
| Cuban Commission | United States Commission |
| Dr. Amadeo López Castro | Defense Supplies Corp. |
| Senator José M. Casanova | Mr. Samuel H. Sabin24 |
| Dr. Arturo Mañas | Mr. James Ferguson |
| Señor Gaston Godoy22 | Mr. Carl F. Rose |
| Señor Teodoro Santiesteban23 | Mr. John Erickson |
| Señor Manuel Rasco | Office of Economic Warfare |
| Dr. Felipe Pazos | Mr. George L. Bell25 |
| Dr. Oscar Albertini | Mr. John Eyre |
| State Department | Office of Price Admin. |
| Mr. George F. Scherer | Mr. George Strasser |
It took just three hours for the meeting of September 27 to arrive at a statement; with the Cubans unable to accept the following proposal of the United States group, presented by Mr. Sabin:
- (1)
- One contract to include both invert and blackstrap molasses. The United States is willing to take the exportable surplus of both 1943 and 1944 blackstrap molasses, estimated at a total of about 100,000,000 gallons.
- (2)
- Invert molasses to be sold on the basis of 2.40¢ per pound of sugar, with a minimum quantity of 100,000,000 and maximum of 280,000,000 gallons. The quantity is to come out of the sugar crop as purchased by CCC, although no guarantee can be given that the increase over 70,000,000 gallons will mean an increase in the size of the crop, as that is CCC’s decision.
- (3)
- Blackstrap price to be 5⅝ cents per gallon.
- (4)
- Delivery at customary coastal point.
- (5)
- Delivery on the basis of f.o.b. vessel at the option of the Institute or mill with added payment of ⅜¢ per gallon.
Before reaching its final proposal, the United States Commission reviewed subsidies and cost figures on invert and blackstrap molasses [Page 177] and López Castro expounded on Cuban-American economic relations, dwelling at some length on the trade agreement. He mentioned that the Dominican Republic will receive a price of 2.65 for sugar although it has no trade agreement.
The Cuban Commission clearly indicated that they could not sell invert at less than 2.50 and that they would have to repeat all their previous arguments concerning the need for selling blackstrap on a sugar content basis in reply to a United States proposal.
Comment: It appeared likely that the Cuban Commission has been negotiating on the same basis as it negotiated sugar, that is no less favorable provisions than the 1942 molasses contract are acceptable. They mentioned at the last meeting and for the first time that they have no authority to negotiate a blackstrap price, as they must submit the matter to the Institute and sugar associations in Cuba. They have authority to agree on invert, since it is sugar for all intents and purposes and the Commission’s activities, of course, relate directly to sugar.