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FOREIGN RELATIONS, 1942, VOLUME VI


837.61351/2887
       The Charge in Cuba (Briggs) to the Secretary of State

No. 3638                                HABANA, March 11, 1942.
                                             [Received March 12.]
  SIR: With reference to previous correspondence concerning the 1942
Cuban sugar crop, and in particular to my telegram no,. 102 of March
4, 12 noon, I have the honor to enclose for the confidential informa-
tion of the Department a copy of the memorandum of the conversa-
tion 82 on March 10 with Mr. Peter Schellens, Vice President of the
National City Bank of New York, and Mr. Carter, Manager of the
Habana Branch of that bank. Mr. Schellens has apparently come
to Habana following receipt of an intimation by the head office in
New York that the Cuban Government is dissatisfied with the high
rates allegedly charged by the banks for advances to assist in financ-
ing the grinding of the crop.
  It will be noted that my callers denied that rates higher than six
percent are being asked by the National City Bank, but admitted that
amounts charged certain Cuban mills may be twice as large as the
interest which American companies are having to pay (i.e. 3%).
This factor alone would seem to be sufficient to explain the attitude
shown last week by Se-nor Amadeo L6pez Castro, reported in my tele-
gram mentioned above.
  The Department will also note that the National City Bank is ap-
parently considering the possibility of offering credit accommodation
for crop financing to the Cuban Sugar Stabilization Institute,83 for
use by the latter with individual mills. Should anything come of
this possibility, I shall report further.
  Respectfully yours,                            ELLIS 0. BRIGGS


837.61351/2891 Telegram
      The Charget in Cuba (Briggs) to the Secretary of State

                                 HABANA, March 14,1942-11 a. m.
                                           [Received 1: 54 p. m.]
  127. My telegram No. 102, March 4, noon, and despatch No. 3638,
March 10 [11]. Investigation reveals that at least one of the three
American banks here is in fact charging up to 8% on advances in con-
junction with the present sugar crop notwithstanding the security
provided by the crop sale contradt with the American Government.
8 Not printed.
&quot; A government agency established to supervise the production and export
of
sugar.


318


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