837.61351/5–1649

Memorandum of Conversation, by the Secretary of State

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Participants: The Secretary
Señor Carlos Hevía—Cuban Foreign Minister
Ambassador Oscar Gans—Cuba
Mr. Walker—CUB1

The Cuban Foreign Minister, during the course of a courtesy call, took occasion to bring to my attention a number of problems which are of concern to the Cuban Government. He said that Cuba is going through a period of postwar readjustment which involves a reduction in sugar production, a factor of great economic importance to Cuba. Sugar production this year, he said, will be approximately 18 per cent less than last year, and a further reduction of 20 per cent is expected next year. He went on to say that this retrenchment in Cuba’s economy is a political shock, and that his Government, in an effort to offset it, is desirous of carrying out an extensive public works program involving the construction of rural roads and aqueducts. He pointed out that in this connection the Government is reducing its budget by approximately 30 per cent, which will mean the dismissal of some Government employees, a situation which will be unpopular from a [Page 631] political point of view. He feels that a public works program will be of material help in preventing any widespread unemployment. He said, however, that financial assistance will be required from the United States in developing such a program.

The Minister stated that President Prío was a sincere friend of the United States and unlike former Cuban Chiefs of State was not afraid to evince this friendship. He feels that in view of President Prío’s attitude this is a propitious time to strengthen relations between the United States and Cuba. He referred to the over-all program which was discussed when he and President Prío were in Washington last December,2 and expressed the hope that some progress could be made in developing it.

Cuba, the Foreign Minister said, is strongly opposed to dictatorships, both in the Western Hemisphere and in other parts of the world. He then made a comparison between the democracy in Cuba and the tyrannical dictatorship in the Dominican Republic. In this connection, he referred to Cuba’s sugar preference which he said was of far reaching political and economic importance to Cuba. He mentioned the concession on sugar under negotiation with the Dominican delegation at Annecy3 and pointed out that it would be of insignificant economic benefit to the Dominican Republic, but of great importance to Cuba. He feels that aside from the political implications involved, the volume of trade between the United States and Cuba is so much greater than between the United States and the Dominican Republic that there is hardly any economic justification for granting a concession to the latter country.

I told the Minister that I had discussed these matters with Ambassador Butler and that serious thought was being given to them. I also told him that we want to do everything possible to be of help to the Cuban Government.

I inquired whether Colonel Batista4 had any connections with the communists. The Minister said that he was under the impression that Batista had been in communication with Lázaro Cárdenas,5 a Mexican closely associated with Lombardo Toledano,6 but that he was not aware of any direct association between him and the Communist party.

  1. William W. Walker, Assistant Chief of the Division of Caribbean Affairs.
  2. See memoranda dated December 9 and 10, 1948, Foreign Relations, 1948, vol ix, pp. 573 and 576.
  3. Documentation on the meeting of the contracting parties to the GATT, held in Annecy, France, is contained in volume i.
  4. Fulgencio Batista y Zaldívar, President of Cuba, 1940–1944.
  5. Lázaro Cárdenas, President of Mexico, 1934–1940.
  6. Vicente Lombardo Toledano, head of the CTAL.