As you are well aware, I have long been interested in the problem
of the Habana waterworks and share your belief that its reconstruc-
tion and extension constitute a project of public works of great im-
portance. There exist in the various agencies of the Government of
the United States a full appreciation of the economic and social bene-
fits to be derived from the project, and a sympathetic desire to cooper-
ate to the fullest extent practicable with you in carrying it out.
  There are two principal types of considerations involved in such
cooperation. The first is of course the working out of satisfactory
financial and technical arrangements for handling the project. I
understand that you have discussed these at some length with the
President of the Export-Import Bank, Mr. Warren Lee Pierson, and
you are in broad general agreement with respect to the matter. I am
informed by Mr. Pierson that upon the receipt from you of a letter
regarding the form of financial cooperation he will be able to give
you his specific suggestions and comments.
  The other type of consideration is even more important in these
days in which the decision to allocate materials to any project must
be based upon the degree to which the project will contribute to our
common major objective, the winning of the war. I refer of course
to the priority rating which must be obtained from the War Produc-
tion Board if the materials and equipment to complete the project
are to be made available. The Department will make every effort to
insure that the production agency gives appropriate consideration to
the strategic and other aspects of the project. Preliminary consider-
ation of the project has already taken place, and as additional detailed
information regarding the materials required is received, the Depart-
ment will be in a position to press for a decision.
  It was a great pleasure for me to see you again on your recent visit
and to have an opportunity to discuss matters of common interest.
  With my kindest personal regards, believe me,
      Yours very sincerely,                      SUMNER WELLES


837.51 Cooperation Program/160
Memorandum of Conversation, by the Acting Secretary of State

                                      [WASHINGTON,] April 6,1942.
Participants: Senfor Dr. Aurelio F. Concheso, Cuban Ambassador;
              Cuban Minister of Finance;
              Cuban Secretary of the Presidency, Dr. Lopez Castro;
              Mr. Welles, Acting Secretary.
  The Cuban Ambassador called this afternoon accompanied by the
Minister of Finance and by the Secretary of the Presidency, Senfor
Lopez Castro.



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.CUBA