837.61351/4546d: Airgram
The Secretary of State to the Ambassador in Cuba (Braden)
A–127. You are authorized to transmit the following proposal informally to the Cuban Government.
“In view of the unfortunate interruptions in the molasses negotiations between the representatives of our Governments by the illness of our esteemed colleague and friend, Ingeniero Amadeo López Castro,79 at the suggestion of the Foreign Economic Administration, I have been authorized by my Government to submit a proposal for the consideration of the Cuban Commission pending the early resumption of these discussions in Habana. My Government proposes that the Cuban Commission consider a sale of 100,000,000 gallons, but not less than 60,000,000 gallons of blackstrap molasses at 2.18¢ per pound of total sugars content for blackstrap molasses containing 52% total sugars or more (this is the equivalent of 1942 price of 13.6¢ per gallon): For blackstrap molasses containing less than 52% total sugars content there shall be deducted from the above-mentioned basic price for each percentage or fraction thereof below 52% total sugars .05¢ per pound total sugars content. Of course it will also be necessary to reach an agreement on matters of delivery and other commercial details. However, it is believed that agreement on these matters can readily be reached without the necessity of prolonged or extended discussions.
When discussions are resumed, it will be necessary, in the opinion of my Government, to explore the basic principles involved in the general molasses-alcohol situation to the end that a mutually acceptable solution can be reached at the earliest possible time. My Government appreciates that the Government of Cuba is no less concerned in this regard than is the Government of the United States, and that it is also fully appreciative of the urgency of obtaining for war purposes [Page 923] the maximum quantities of blackstrap molasses and industrial alcohol.
My Government, of course, realizes that the use of substantial quantities of industrial alcohol is essential to the economy of your country and the welfare of its inhabitants. It is appreciated that your Government has limited the consumption of alcohol for fuel purposes to the fullest extent possible throughout the past year. Moreover, it is recognized that it is the intention of your Government to maintain this restriction.
During the same period, however, the production of beverage alcohol has vastly increased in Cuba, as have also importations to the United States. My Government has prohibited domestic distillers from producing any alcohol for beverage purposes and has diverted our entire distillation capacity to war requirements. The limitation of beverage alcohol production appears to present the most immediate practical source of additional supplies of industrial alcohol and its ingredients for war purposes. Accordingly, it is the earnest hope of my Government that a limitation on the production of beverage alcohol will be established by the Cuban Government as a result of these discussions. My Government is prepared to impose an import control on beverage alcohol, but it is reluctant to take such a step unless discussions between our Governments indicate its desirability.
My Government is aware of the complete understanding of its viewpoint on the part of your Government’s representatives, but unfortunately the interruption of discussions did not allow a thorough exploration of the considerations which should govern a final and satisfactory determination. The present proposal is made in view of the need, recognized by both Governments, for carrying on the discussions at the earliest possible date and on the high plane of mutual cooperation which has so clearly marked the previous negotiations.”
You are requested, with the knowledge of the Prime Minister,80 personally to furnish each of the members of the Cuban Commission with a copy of the foregoing proposal. The Department requests you to emphasize to the members this Government’s hope that the proposal will receive very careful consideration in view of the increasing importance and urgency of reaching an early agreement.
Mr. Scheuer81 plans to proceed to Habana to meet with the Cuban Commission on Monday morning, January 31. He will be accompanied by a group presumably composed of: Mr. Earl B. Wilson, CCC;82 Mr. Samuel H. Sabin, DSC;83 Mr. James M. Ferguson, DSC and Mr. John A. Eyre, FEA.84