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FOREIGN RELATIONS, 1942, VOLUME VI


would be for the Embassy to support informally and as occasion may
arise the basic recommendations of the American Technical Mission,
particularly when the proposed legislation is in conflict with the
specific recommendations of the Technical Mission and where such
departures from the Mission's recommendations would appear likely
to work undue hardships on American banks and indirectly on Cuba's
own basic interests. In this connection the Department refers you
specifically to the Fourth Report to the Cuban Government under
date of July 15, 1942, &quot;Comments on the Draft Banking Legislation.&quot;
The Embassy might on suitable occasion, for example, draw the atten-
tion of appropriate Cuban officials to the views of the Mission with
respect to the powers granted to the Inspector General of Private
Banking in Titles 4 and 5, (see page 19), and to the comments of the
Mission with respect to Title 5, chapter 2, article 16, requiring 40 per
cent of the profits of commercial banks to be turned into a contingent
reserve, (page 21). Similarly, your attention is called to the provi-
sions discussed on pages 22 and 23 relating to restrictions on investment
abroad and measures which in the opinion of the Mission would impede
unduly the use of dollar deposits.
  The Department shares your hope that the proposed legislation will
be carefully considered by the Cuban Congress and that opportunity
will be given by public hearings for interested parties to express their
views.
  There is enclosed for your information a copy of a memorandum
prepared in the Financial Division of the Department 65 commenting
point by point on the views expressed in the Embassy's despatch under
reference.
  Very truly yours,                    For the Secretary of State:
                                                  SUMNER WELLES

837.516/404
Memorandum of Conversation, by the Assistant Chief of the Financial
                      Division (Ltthringer)

                               [WASHINGTON,] September 8, 1942.
Participants: Lieutenant Southard, U.S.N.66
              FD, Mr. Livesey 67
                   Mr. Luthringer
  Lieutenant Southard called on Mr. Livesey to discuss with him the
former's brief sojurn in Habana during which he was prepared to

  8 Supra.
  &quot; Frank Southard, member of the American Technical Mission to Cuba.
  ' Frederick Livesey, Chief of the Financial Division.


308


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