Telegram from Washington to New Delhi, 'Your telegram No. 10826 dated December 23'

DATE: 31 December, 1946 (received Jan 1)

Telegram No: 151

FROM: Bajpai, Washington

TO: Food Department, ND

SECRET

IMPORTANT

Your telegram No. 10826 dated December 23.

In order to explore possibility of obtaining better terms I saw Cuban Ambassador whom I know personally. He informed me yesterday that Cuba has to sell her quote of “Free” sugar at the highest possible price because resulting profit is used by his Government to finance public works and to pay out certain subsidies. If India were disposed to enter into contract for say 3 years to purchase Cuban sugar preferably in increasing quantity, a deal of mutual benefit to India and Cuba might be feasible. Please telegram whether this proposal commends itself to you. The Ambassador did not suggest any increase in Cuba’s quota of jute as part of such a deal but did express concern over the slowness with which bags were being shipped. According to him, none have reached Cuba so far. A clear picture of shipment of bags, preferably with some hope of acceleration of pace if shipments are slow, will help. Cubans attach greatest important to quick delivery.

Ambassador also brought up question of broadening direct trade between Cuba and India. He spoke of India’s demand for industrial alcohol which Cuba can supply and of direct shipment to India of Havana tobacco leaf for manufacture of cigars in India. I told him that this should be treated separately as part of long-term trade relations between the two countries. However if facts justify exploration of possibilities in these fields, express of India’s readiness to follow up point will probably help sugar negotiations, if Government should decide to pursue them on basis indicated in No. 1 of this telegram.

Ambassador suggested that Kirpalani should be asked to inform Garcia Beltran in New York that India is not interested for the present in offer of 100,000 tons of sugar at 12.5 cents a pound. This is being done through Shaffi since Kirpalani is away on tour.

Grateful for earliest possible reply.