Foreign Relations of the United States, 1961–1963, Volume X, Cuba, January 1961–September 1962

12. Memorandum From Secretary of State Herter to President Eisenhower⁰

Washington, January 5, 1961.

SUBJECT

• Invocation of Trading with the Enemy Act Against Cuba

From an economic point of view the application of the Trading with the Enemy Act would have a limited effect. The assets of the Cuban Government in the United States are believed to be very small. We have already embargoed exports from the United States to Cuba under the Export Control Act except for certain foods and medical supplies which continue to go forward on humanitarian grounds. On the import side you have already exercised your authority to eliminate imports of Cuban sugar, which constitute approximately 70% of Cubaʼs exports to the United States. The principal economic effect of the application of the Trading with the Enemy Act would therefore be to limit the remaining 30% of Cubaʼs exports to the United States, consisting principally of tobacco, molasses, fruits and vegetables. Cuba obtains about $100 million a year for these items, but not all of this trade would be lost since Cuba could presumably market most of these items in other countries.

From a political standpoint the application of the Trading with the Enemy Act would create certain problems. In freezing Cuban assets in the United States it would be necessary to exempt the funds of some Cuban nationals in order to avoid creating hardships on anti-Castro elements. This would lead to difficult problems of selection in individual instances.

But more importantly, there would be the problem of our taking unilateral action in an area where it has hitherto been our policy to act multilaterally through the Organization of American States and under the Rio Treaty.¹ Whether or not a new proclamation were issued under the Trading with the Enemy Act, it would be necessary to make some public statement regarding the reasons for invoking the Act. Such a statement would of necessity base such invocation on a threat to the peace and security of the Hemisphere caused by the Communist and interventionist character of the Cuban regime. This is an area which the Rio Treaty contemplates would be treated with in a multilateral way. Failure to act under the Treaty would expose us to charges in Latin America that we failed to avail ourselves of the inter-American machinery for the maintenance of security in the Hemisphere.

Nevertheless, I believe that the time is fast approaching when it should be possible to ascertain whether there is any reasonable prospect for prompt action in this direction on a multilateral basis. If this multilateral action is not taken in the near future, I believe we should then proceed unilaterally. I think it would be appropriate for me to say to Mr. Rusk that had it not been for the time factor this Administration would have applied the Trading with the Enemy Act and to recommend to him that he give this matter his urgent attention.

On balance, it is my recommendation that, given the extent to which this step would commit the new Administration, this decision be left to them.

Christian A. Herter

0. Source: Eisenhower Library, Whitman File, Dulles-Herter Series. Secret. Initialed as seen by President Eisenhower. A handwritten note on the source text by Goodpaster, dated January 6, reads: “Told State President has approved.”
1. For text of the Inter-American Treaty of Reciprocal Assistance, signed at Rio de Janeiro on September 2, 1947, see American Foreign Policy, 1950-1955: Basic Documents, pp. 789-796.