SUBJECT

Cuban Political Situation and Possible Effects on American Interests Operating in Eastern Cuba

PARTICIPANTS

ARA-Mr. Rubottom, Mr. Snow

CMA-Mr. Wieland, Mr. Little, Mr. Leonhardy

L/ARA-Miss Whiteman

Mr. Kenneth H. Redmond-President of the United Fruit Company

Mr. Hummel-Director of the American Foreign Power and also connected with the Lone Star Cement Co.

Mr. J.C. Carrington-Freeport Sulphur Co.

Mr. Harris E Dodge-Texas Company

Mr. Robert J. Kleberg-President, King Ranch

Mr. Michael Malone-King Ranch representative in Cuba

Mr. J.S. Baker-Assistant Vice President, United Fruit Company

Mr. Redmond of the United Fruit Company began by stating that the gentlemen with him represented American companies with properties and personnel in Eastern Cuba and that they had come to Washington following a meeting in New York on Tuesday [2] of officials of the interested companies in order to obtain the Department's views on the present and future political situation in Cuba and the nature of any course of action and policy the United States might take towards the newly elected government in that country. Mr. Redmond briefly referred to the increasing difficulties his company was having in Oriente Province and said that others in the group were or would be faced with a similar situation. Mr. Redmond then asked what the Department's views were on the prospects of elections being held, the possibility of their acceptability by the Cuban people, and whether a lull could be expected in hostilities following the elections.

Mr. Rubottom referred briefly to the attempts by the Castro Movement to disrupt the elections by violence. He said he thought that elections would be held but it remained to be seen whether the people would accept the mandate and thereby exert a calming effect on the over-all tense situation. If Castro fails in his attempt to disrupt the elections it could reduce, for a while at least, his effectiveness. He said that we are hopeful that the menace of the Castro forces would be reduced after elections if the elections had wide acceptability but that this may be an optimistic view. He deferred to Mr. Wieland and Mr. Leonhardy on the question of whether any significant reduction in Castro's activities would take place after the elections. Mr. Wieland explained that Castro is banking heavily on frustrating the elections and if his attempts were not successful it would be a blow to his cause but that it was unlikely that there would be much diminution of Castro's military activity in Oriente as result. Mr. Leonhardy explained that the Army apparently had no use for Castro and could be expected to put up resistance in the more populated areas and away from Castro's mountain strongholds. While it would appear that Castro would have little chance of taking over Cuba militarily, the Army at the same time probably would not be able to defeat or reduce the Castro forces by any significant number and therefore a continuation after elections of the same type of hostilities in Oriente and other isolated areas as we have seen in the past several months could be expected.

Various of the company representatives present asked the question of what the U.S. policy would be towards the newly-elected government and whether or not we would give it assistance and encouragement. Mr. Rubottom referred to the limitations imposed upon the United States by our various inter-American agreements and said these and our non-intervention policy ruled out the use of our troops to assist governments in the hemisphere. He said that there were a number of months intervening between the elections and the actual inauguration of the new government and that this would give our Government an opportunity to assess the prospects of the new regime so that we could determine what, if any, steps we could and should take short of intervention to lend our moral support to it. He advised those present that our arms policy was constantly under review but that the export of U.S. arms to Cuba was really not the answer as from the time of Castro's landing in Cuba in December 1956, to March of this year the Batista Government was receiving arms from this country but could not, despite this, subdue the Castro forces. Mr. Redmond suggested the possibility of getting out some kind of public announcement which might be of assistance to the new Government and Mr. Rubottom said that if the new Government showed signs of bringing about a peaceful solution in Cuba we would seriously consider giving it this type of support.

Mr. Hummel of American Foreign Power mentioned the recent statement made by the Embassy in Habana relative to American firms paying tribute to any of the factions in the political struggle in Cuba [3] and suggested that this was the same type of statement made by Ambassador Braden back in 1942 [4] but with the deletion of the final sentence which indicated such cooperating American firms would be given U.S. protection. He asked why this last sentence was deleted. Mr. Rubottom explained that the Embassy's statement was carefully phrased and was designed to be of assistance to the American companies in Cuba who were under threat. Such statements he said, have been made under similar circumstances in other countries in recent years and the Braden statement to which Mr. Hummel referred was not used as a model and no deletion from it was involved. Mr. Hummel raised the point that if they resisted paying tribute as the Embassy has indicated they should do, how much protection could they expect from the United States Government and what recourse would they have against present and future Cuban governments for damages incurred. Mr. Rubottom said this raised certain legal points and he wished to defer to Miss Whiteman. Miss Whiteman explained that American firms, when they invested abroad, did so with the knowledge that they would have to incur certain risks. She explained that our Government endeavored to extend such protection to Americans and their properties abroad as was possible within the sovereignty and jurisdiction of another Government, but that in this particular case large areas of Eastern Cuba are under control of rebels who have no status recognized by this country. So far as the Cuban Government is concerned, they are not acting within its authority. Thus, we are unable to look to the legitimate government or to the rebels to provide protection. With respect to property damages she said there was ample legal precedent of governments refusing to pay damages incurred under such circumstances. If the rebel opposition responsible for such damages were to come into power, a claim for such damages could be made against the new government. Whether or not such a claim would be paid would be purely conjecture.

Mr. Rubottom explained the Department's concern for the plight of American interests in this area of Cuba and said that the Secretary was vitally interested in this matter.

Mr. Redmond said that the group was not only interested in determining what the Department's future course of action would be in Cuba but wanted to express its willingness to cooperate in any efforts it might wish to make to bring about a peaceful solution in Cuba. Mr. Rubottom said that we had been giving the Cuban situation priority consideration for many months and were thinking of ways and means short of intervention which might bring about a solution. He mentioned the good offices of the Organization of American States as a possibility. He also mentioned, as did Mr. Snow, the important role which the American press had and could play in this respect. Mr. Snow mentioned the definite evidences we had that the Castro Movement was particularly sensitive to editorial comment in the United States press during the July kidnappings and recent editorials condemning their activities probably would have a deterring effect on their depredations against U.S. properties. Mr. Rubottom stated that the Department definitely could not look with approval on the tactics being used by the Castro Movement to gain its ends in Cuba.

Mr. Redmond also raised the issue of U.S. recognition of the newly-elected government in Cuba. Mr. Rubottom replied that a government which succeeded another through the ordinary electoral process is usually accorded recognition automatically. He said he realized Cuba was a special case and the Department would probably have to weigh the various factors ordinarily involved in recognition.

Mr. Kleberg raised the question of Communism in the Castro Movement and Mr. Rubottom replied that, although there is no doubt the Communists are exploiting the opportunity provided by the rebellion, the Department had no conclusive evidence that the Movement is Communist-inspired or dominated. He pointed out that if we had had conclusive information to this effect, our attitude towards the Cuban situation would have been altered considerably. He asked the representatives present if they had any information which they had not already revealed to our Embassy indicating possible Communist connections with the Movement. Mr. Redmond indicated that such information as they had, already had been available.

Mr. Rubottom thanked the American business representatives for their visit and willingness to cooperate under these very difficult circumstances and said the Department would carefully consider their comments.

NOTES:

1. Source: Department of State, Central Files, 737.00/10-3158. Confidential. Drafted and initialed by Leonhardy and cleared in draft with Whiteman.

2. October 28.

3. See Documents 138 and 143.

4. Not further identified.