Box 13

Scope and Contents Acknowledges letter of Oct. 23; is glad Pfeiffer has established contact with Raymond; Geist ideal person to carry on contact between Department and such organizations as National Council of American Importers, Foreign Trade Council, etc.; read with interest Pfeiffer's analysis of problems; many good business men do not understand how outside pressures can affect internal economy; agrees with Pfeiffer that totalitarian and free economies cannot survive together; if Germany is victorious...

Scope and Contents 2 copies. At dinner for Batista had little opportunity to speak with him alone; for first time he mentioned loan but only briefly; has had long talks on subject with [Domingo] Ramos, [José manuel] Cortina, and other important people; not one favors loan for purposes for which it was requested; even supporters of Government fear misuse of money loaned to Cuba without adequate safeguards; Cuban Government doesn't seem unduly concerned over its financial problems; current sälaries paid by...

Scope and Contents Glad to know letters and despatches have been helpful; pleased that Department taking attitude it has on budget deficit financing; loan for such purpose would merely encourage Cuban Government to continue unsound fiscal policies; any aid given to Cuba must be of constructive nature; has read carefully memorandum prepared in Division of American Republics on "Plan of Cooperation with Cuba"; thinks it a sound document and good plan of approach; agrees that Decree Law 522 must be extended, the...

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Gives further information about new daily paper, "Tiempo"; no doubt that [Pedro] Martinez Fraga directly interested in it; [José Manuel] Casanova convinced paper established for purpose of blackmail and to work against renewal of Decree Law 522; [Carlos] Saladrigas probably a part of scheme; one of most respected Cuban friends says little can be expected of Saladrigas and he will do as he is told.

Scope and Contents Reports conversation with [José Manuel] Cortina, Foreign Minister; went to see him to discuss arrangements for U.S. Army officials to take pictures from air over Cuba in accord with conversations on defense measures; Cortina most cooperative in matters of this kind; he then spoke of loan; got impression he realized things weren't going as favorably as [Pedro] Martinez Fraga reported; Cortina thought negotiations might be facilitated if he knew on what points there was possibility of reaching...

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Enclosure: See No. 1416. Enclosing friend's latest report on situation in Germany; friend just returned from seven weeks in Germany where he talked with all kinds of people - workmen, industrialists, jurists, Nazi officials, and army officers; Messersmith will recall that friend said in 1939 it would be mistake to underestimate Germany's military power and he predicted invasion of Holland and Belgium and occupation of Channel ports.

Scope and Contents 2 copies. Enclosed with No. 1415. Entire military and political machine of Germany rests on person of Hitler; Hitler anxious to make peace; he would like to consolidate Europe into one economic bloc under German leadership; England the one obstacle, withstanding the constant bombings and sending her own bombers nightly to Berlin; morale of German population low; they had believed war would be over by Christmas, but now realize it may last a long time; plans now underway for further conduct...

Scope and Contents Reports on activities of Pepin Rivero, recent purchaser of La Prensa in New York; believes Rivero will support inter-American cooperation and will not approve interference from Spain; in spite of close contacts with Falange in Cuba, he is not really active in movement and may exercise good influence; new Spanish Consul General in Cuba obliged to leave Mexico because of activities objectionable to Mexican government and when previously in Cuba was believed to be plotting against government;...

Scope and Contents Enclosing copies of despatches No. 1119 and 1123 in which situation with respect to loan as seen from Cuba is summarized; Department may wish to place copies with other Departments concerned in the matter; has set forth in despatches things U.S. must insist on from Cubans and things U.S. can constructively do; once agreement is reached, announcement should be made simultaneously from Washington and Havana; points covered in desptaches based on assumption that Cuban Treasury reform be carried...

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Acknowledges letter of Nov. 12 and thanks Bigelow for sending copy of report from mutual friend; read it with much interest.

Scope and Contents Resignation of [Pedro] Martinez Fraga a surprise, but was aware of Government's dissatisfaction with him; believes Batista asked for resignation because of misinformation he was giving concerning negotiations of U.S. loan; sound, conservative Cubans will be pleased, as will most of men in Government; received call from [José Manuel] Cortina at six o'clock yesterday saying morning papers would announce resignation of high official of Cuban Government, but should not disturb good relations of...

Scope and Contents 2 copies. Reports on conversation with [José Manuel] Cortina; on resignation of Ambassador [Pedro] Martinez Fraga, Cortina said it "was a purely internal matter between the Cuban Government and the Ambassador"; gathered that resignation not voluntary; Batista unhappy about progress of loan negotiations in Washington and realizes Martinez Fraga had misinformed him; Cortina unhappy also with manner in which Martinez Fraga sidetracked Cuban Foreign Office; Cortina mentioned memorandum handed to...

Scope and Contents 2 copies. Has just learned Batista had heated telephone conversation with [Pedro] Martinez Fraga on evening of Dec. 9, following exchange of telegrams between Minister of State [José Manuel] Cortina and Martinez Fraga with respect to progress of loan negotiations; Cortina reported to have told Martinez Fraga he was "negotiating" with Messersmith, to which Martinez Fraga took exception; during Batista's conversation with him,Batista made it clear he was dissatisfied, and accepted his...

Scope and Contents Major [Hayne Davis] Boyden, Naval Attaché, reported he was approached for information concerning when Cuba could expect military materials under provisions of agreement several months ago; attended dinner given by Col. [Henry Anson] Barber, [Jr.] for Col. & Mrs. [Jose] Pedraza; asked Pedraza if Cuban Government had drawn up list of Military supplies needed; apparently it had not; gathered they did not have money to pay for supplies, and were not sure they were expected to pay for them;...

Scope and Contents Talked with [Jose Manuel] Cortina again this morning; newspapers speculating on new Ambassador to U.S.; they say [Aurelio Fernandez] Concheso is favorite candidate; mentioned to Cortina importance of Cuba having right kind of man representing her in Washington; told him about reports of Concheso's German and Fascist leanings; Cortina replied those reports were unfounded, but that no decision had yet been made as to Ambassadorship; brought to Cortina's attention that Communists had prevented...

Scope and Contents Cuba asking immediate increase of 500,000 tons in sugar quota; sugar still Cuba's mainstay and with loss of foreign markets, it is vital to her economy that U.S. allow increase; may involve some risk, but believes U.S. should take immediate action; [Jose Manuel] Cortina emphasized urgency because grinding season near; Cortina hopes U.S. will do something to strengthen prestige of Cuban Government; he realizes Batista's weaknesses but has confidence in his good intentions; with respect to...

Scope and Contents [Jose Manuel] Cortina called and asked for interview; he said President had instructed him to ask Messersmith to convey to U.S. Government request that [Aurelio Fernandez] Concheso be accepted as Cuban Ambassador to U.S.; reminded Cortina of importance of appointing man who would have confidence of both Cuban and U.S. Governments; Cortina replied Concheso enjoyed full confidence of Cuban Government; he had investigated rumors of Concheso's pro-German sympathies and found them groundless; he...

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Memorandum on observations made by Minister of State [Jose Manuel] Cortina on delivering memorandum of counter proposals, dated Dec. 24, 1940, with respect to loan, economic assistance, and cooperation being sought by Cuban Government.

Scope and Contents Arrived back in Havana morning of 14th; after going over sugar situation with [Willard Leon] Beaulac, talked with [Warren Lee] Pierson and then saw [Jose Manuel] Cortina; Cortina disturbed; Government willing to accept offer of Import-Export Bank, but sugar producers say $3.25 per bag not enough to cover cost; Pierson called Washington and got permission to increase offer to $4.00 per bag; thinks producers will accept this; suggested to Pierson he not tell Cortina at once, but wait until his...

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More objections raised to sugar arrangement with U.S.; [Jose Manuel] Cortina anxious that it go through but others in Government and industry lukewarm; obvious they don't want to renew [Decree Law] 522 as part of arrangement; they would like to use the six cent a bag tax for some other purpose; told Cortina that if sugar arrangement is turned down Cuba would find it difficult to secure other financing or credits.

Scope and Contents [Aurelio Fernandez] Concheso leaving today for U.S.; gave party at house Monday evening honoring the Conchesos; Concheso also honored at luncheon yesterday by American Chamber of Commerce in Havana; he made good speech expressing commitment to cooperation with U.S.; had several hours with him recently at the house; not an impressive personality and English not good, but he is intelligent, and has the confidence of the better men in Cuban Government; he is very close personally to Batista;...

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In accordance with Hull's instructions, called on [Jose Manuel] Cortina and informed him of latest developments in U.S. action and policy with respect to Far Eastern and European situation; set forth to him in detail nature and objectives of bill now before U.S. Congress permitting full aid to American republics for defense work; Cortina gave assurance that U.S. could count on Cuba for whatever help she could give.

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Received Welles' note regarding training planes for Cuba at cost of $60,000; Cubans had asked for surplus or obsolete planes and had not expected to pay for them; doubts wisdom of asking them to buy planes when they are already cutting budget at U.S. suggestion; recommends letting matter rest until Lend-Lease Bill is through Congress; perhaps under that bill delivery of planes may be permitted.

Scope and Contents Completion of sugar arrangement awaiting legislation now being prepared and which will include renewal of Decree Law 522; [Jose Manuel] Cortina and [Carlos] Saladrigas very helpful; [Jose Manuel] Casanova also helpful, but not practical; waiting to discuss agricultural credits, public works, fiscal reform, etc. with Cortina and Batista until sugar arrangement is completed; general economic situation holding up fairly well, but political situation not good; general lack of confidence in...

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Transmitting despatch No. 1505 which reports rift between Batista and head of Army [Jose] Pedraza and danger of revolution. (See No. 1435.)