The Ambassador in Cuba (Beaulac) to the Department of State
TOP
SECRET HABANA,
January 9, 1953‑6 p.m.
332. Reference Circular Airgram November 24, 1952,
3:45 p.m. and Top Secret cirtel 722 January 7, 1953.[1]
Cuba's economic development in recent past has been
retarded less by inadequate technical assistance than by official corruption
and demagoguery and by nationalistic and restrictive laws and practices which
have discouraged private investment. In circumstances our Point IV program is
small and directed at objectives of immediate as well as long‑range
importance to United States and Cuba.
Most important is cooperative fiber project aimed at
development Kenaf industry which in turn it is hoped will help make continent
less dependent on bagging material from Far East.
Considerable success has attended program. Kenaf .
varieties developed adaptable Cuban conditions which have high percent good
quality fiber and resistant disease. Decorticating methods and machinery
developed and have demonstrated feasibility mechanizing extraction Kenaf fiber.
Although project still experimental, more than $1
million private capital invested in industry last year and all companies and
private individuals now operating expected expand or continue plantings this
year.
Cuban Government attaches great importance to Kenaf
project and gives full credit American cooperation. Cuban requirements bagging
fiber approximately 110 million pounds annually which would require 110,000
acres to grow and labor of 10,000 workers three months annually during sugar
industry's dead season. Land for Kenaf industry immediately available without
disturbing other crops or industries.
Minerals program and limited aid in specialized
fields authorized but United States has failed implement program apparently for
bureaucratic reasons. Program is of great importance to United States and
should be implemented promptly.
Embassy recently instructed by Department State
suggest to Cuban Government that present overall Point IV Agreement[2] which is
working satisfactorily be replaced by more complicated and cumbersome agreement
which probably would conflict with Cuban Constitution. Embassy and competent
Cuban officials opposed to adding to or replacing existing agreement at this
time.
Cuban Air Force received grant aid during 1952 which
is being used increase operational effectiveness aircraft. Additional such aid
planned for 1953 and 1954. While grant aid given fairly promptly, great delays
have occurred in connection reimbursable aid. Recommend reimbursable aid be
given higher priority and encouraged and that red tape in connection therewith
be reduced.
1953 program of grant aid is planned for Cuban Navy.
Meanwhile, Cuban Government taking useful steps place vessels and naval
aircraft in state of readiness.
Military coup 10 March 1952 raised delicate problems
for United States in view close cooperation with Cuban Armed Forces which are
more preoccupied with domestic political situation and maintaining own
political position than with contributing continental defense. Essential our
military assistance be quiet and discreet and that air and high‑ranking
military officers and public ceremonies in connection such visits be sharply
limited.
Sudden decrease Cuban Government's revenues and fact
majority Cuban people living under very difficult economic conditions makes it
especially important we keep our requests for Cuban contributions in money to
minimum.
Combination of (1) political tension following
violent change in government which occurred 10 March 1952 when Batista assumed
Presidency by force, and (2) sudden drop in income from sugar due to
withholding large amount last year's crop from market and to limitation this
year's crop naturally limits Cuba's ability cooperate in specific matters with
United States. Nevertheless, present regime committed to policy cooperation and
in some ways is giving more satisfactory cooperation than Constitutional regime
which preceded it.
[1] The referenced airgram (700.5 MSP/11‑2452)
and circular telegram (700.5 MSP/1‑753) requested reports from chiefs of
mission abroad concerning the status of programs authorized by the Mutual
Security Act of 1951.
For text of the Mutual Security Act (Public Law
165), approved Oct. 10, 1951 , see 65 Stat. 373.
[2] For text of the general agreement for technical
cooperation, signed at Habana, June 20, 1951 , and entered into force on the
same date, see TIAS No. 2272, or 2 UST (pt. 2) 1231.