811.512337 Shipping/17
The Secretary of State to the Ambassador in Cuba (Braden)
Sir: The Department refers to previous correspondence with the Embassy concerning the general question of tax exemption accorded United States’ undertakings in Cuba, particularly the Embassy’s despatches numbers 2421 of March 10,25 3411 of June 9,25 3555 of June 23,26 3623 of June 29,25 all of 1943, and transmits for the Embassy’s information a copy of a letter dated January 19, 1944, with enclosures,27 from Mr. Earl B. Wilson, Director, Sugar Division, Commodity Credit Corporation. As you will observe from Mr. Wilson’s letter, the Department is requested to secure relief from payment of the Cuban gross sales tax of 2.75 per cent and the one per cent surcharge for the Railway Retirement Fund which it is sought to assess against certain refined sugars now in storage in Cuba, title to which is vested in the Federal Surplus Commodities Corporation, which originally acquired the sugar for Lend-Lease purposes. A more detailed identification of the sugars is set out in a letter dated January 3, 1944 from the United Railways of Havana addressed to Mr. José A. Ramos, Acting Special Representative, Commodity Credit Corporation.
You are requested, if you perceive no objection thereto, to take the matter up with the appropriate Cuban authorities and request that such steps be taken as may be necessary to prevent the assessment on the sugars of the 2.75 per cent gross sales tax, and also one per cent contribution to the Railway Retirement Fund.
The Department is not disposed at this time to take any action concerning the possible increased labor charges on the sugars.
Very truly yours,