285.
Memorandum of a Conversation, Ambassador's Residence, Panama City, July
23, 1956[1]
PRESENT:
The President President
Batista
The Secretary of State Foreign Minister Gonzalo Guell
Dr. Milton Eisenhower
Mr. Jack D. Neal (MID)
After an exchange of pleasantries, President Batista
expressed his concern regarding the sugar situation, pointing out that sugar
comprises 87 % of Cuba's exports; therefore, the economy of the country depends
greatly upon that one product. He indicated the present poor condition of the
world sugar market was having a bad effect in Cuba. He is attempting to
alleviate the economic situation by a public works program, but that is going
slow at the present time. He stated the heavy investment of United States private
capital‑$400 million.
President Batista handed President Eisenhower an
aide‑memoire (copy attached) making certain recommendations for improving
trade relations between Cuba and the United States and a better coordinated
technical cooperation program for the economic and social development of Cuba,
suggesting that a special Cuban‑United States Commission of experts be
established to study these recommendations.
President Eisenhower stated he is always pleased to
study all suggestions made by our sister Republic. However, the American form
of government is such that it is impossible to make promises as to what we can
or cannot do. The President commented that from his observation everyone is mad
about the sugar situation‑but that we have to work on these problems
without getting angry‑he emphasized that we could not take unilateral
action and do as we please.
President Batista stated with reference to the Point
IV Program[2] he had not obtained the technical expert he felt was required. He
wants an expert on crop diversification.
President Eisenhower said this was the type of
information he wished to have and he would like for President Batista to set
forth in a memorandum just exactly what his requirements are and that his
government would get busy on the matter. President Batista said he would get
this information to Assistant Secretary Holland.
In a discussion of the merits of technical
assistance by the United Nations and that by the United States, President
Batista expressed his preference for United States assistance since it provided
greater facilities.
Secretary Dulles stated we had found from our
experience in other parts of the world that bi‑lateral agreements on
Point IV were preferable to the broad coverage of the UN.
President Eisenhower stated the press was waiting
outside and desired photographs if he had no objections. President Batista
stated it would be a pleasure for him.
Photographs were taken on the steps of the Embassy
entrance.
[Attachment]
REPUBLIC OF CUBA
Executive Power
Major General Fulgencio Batista y Zaldivar,
President of the Republic of Cuba, presented his compliments to General Dwight
D. Eisenhower, President of the United States of America, and expressed his
pleasure at having had the opportunity to meet and converse with him personally
during the Meeting of American Chiefs of State that has just been held in
Panama.
Although the Republic of Cuba fortunately does not
at present have any serious problem pending in its relations with the United
States of America, President Batista was grateful for the opportunity offered
him by President Eisenhower to exchange impressions on the possibility of
improving their relations even more.
This can, in President Batista's opinion, be done
by:
1. Studying the terms of trade between the two
countries, with a view to making them mutually advantageous through the
adoption of such measures as may be considered adequate.
2. Favoring Cuba's plan for establishing new customs
tariffs, more modern and technical than those that have been in force since
1927, but somewhat tentative in character, with the object, now, of simplifying
and increasing Cuba's foreign trade, as far as possible avoiding losses in
foreign exchange, and promoting the economic development of the country.
These new tariffs are to come into force at the
expiration of the present GATT contractual period, December 31, 1957, and
renegotiation of the commercial treaties that Cuba has signed will be arranged.
The most important of these agreements is that with
the United States, which should be re‑examined in the light of the new
Cuban tariffs, when the latter are ready to come into force, while maintaining
the existing preferential treatment between Cuba and the United States of
America, so that the commercial relations between the two countries may
continue to progress at their traditional pace and to our mutual advantage.
3. Studying the possibility of better coordinated
and more efficient technical cooperation in the economic and social
development of Cuba; studying ways in which the financial contributions of Cuba
to the International Monetary Fund and the International Bank for
Reconstruction and Development can yield some profit for the Republic of Cuba;
and seeking to promote the movement of private and public capital toward the
economic and social development of Cuba.
In order to achieve these objectives, it would be
advisable to appoint a Cuban‑American Commission made up of a small
number of experts from the competent institutions in both countries, to study confidentially
and separately the afore‑mentioned objectives, in their countries, and to
consider jointly and alternately in the respective capitals, from time to time,
the direction to be taken in their studies, the results of their work and the
recommendations that should be made to their Governments, without prejudice, as
a supplement, rather, to the organization and functioning of the dynamic
procedure so foresightedly set forth by President Eisenhower in yesterday's
speech, with the proposal to give the OAS an instrument of effective and
concrete action.
PANAMA, July 23, 1956.
[1]
Source: Department of State, Conference Files: Lot 62 D 181. Official Use Only.
Drafted by Neal. The source text bears Holland's initials. A handwritten note
on the source text indicates that William B. Macomber, Special Assistant to the
Secretary, approved the memorandum for distribution. This conversation occurred
after the meeting of the American Presidents in Panama City on July 21‑22;
see Documents 109 ff.
[2]
For documentation of the administration of this technical assistance program by
the Foreign Operations Administration (FOA), established on August 1, 1953, see
Foreign Relations, 1952‑1954, vol. I, Part 1, pp. 227 ff.
[3]
The source text is a translation done by the Department of State's Division of
Language Services.