811.114 Cuba/709b
The Secretary of State to the Ambassador in Cuba (Caffery)
Sir: The receipt is acknowledged of the Embassy’s despatches No. 6406, of June 4, Nos. 6415 and 6420, both dated June 5, and No. 6432 of June 6, 1936,34 all of which relate to the action taken recently by the Cuban House of Representatives to remove certain liquor export restrictions. Copies of the despatches have been forwarded to the Secretary of the Treasury for his information.
The timely action of the Chargé d’Affaires ad interim in discussing this matter with Senator Casanova and other appropriate Cuban authorities has been noted and it is hoped that the Embassy will be successful in its efforts to obtain a continuance of the present system which has done so much to prevent the smuggling of Cuban alcohol into the United States without hampering legitimate exports. Furthermore, it is undoubtedly true, as the Chargé d’Affaires pointed out to Senator Casanova, that the active cooperation of the authorities of this Government in endeavoring to prevent the smuggling of arms and ammunition from the United States into Cuba is due in large measure to the gratification of the Secretary of the Treasury at the action taken by the Cuban Government in putting an end to the smuggling of Cuban alcohol into this country.
With regard to recent action taken by other governments to prevent the use of their territory or facilities in connection with the smuggling traffic, you may inform the appropriate Cuban authorities that the Mexican Government, by a decree effective March 22, 1936,35 has put an end to the smuggling of alcohol from that country; that the Government of the Netherlands has already drafted legislation which will soon be introduced into the States-General in order to exercise better control over shipments of alcohol from the Netherlands destined for smuggling, and that it is confidently believed that the Belgian Government will take similar action. There is enclosed for your use in this connection a memorandum36 showing the cooperation which has been received from other governments as a result of which this nefarious traffic is gradually being completely eradicated.
The Secretary of the Treasury is greatly concerned at the possibility of the removal of the export restrictions on liquor to Cuba. He has called to my attention the fact that if Cuba is now to remove its restrictions other countries which have recently taken action to prevent [Page 428] the use of their territory or facilities in connection with the smuggling of liquors, are likely to follow suit. Action by Cuba to remove its restrictions causes particular concern because of the existence in Cuba, according to reliable information, of some three million gallons of alcohol.
You are requested to discuss this matter with such persons as you deem appropriate, with a view to demonstrating to those persons the advisability of continuing the present system, which has been so helpful in preventing the smuggling of liquor into the United States, and in view of which this Government has shown undue diligence in endeavoring to prevent the smuggling of arms to Cuba. If, despite your representations, the bill should be considered on the floor of the Senate, the Secretary of the Treasury desires that the following amendment be added at the close of Article I:
“Provided—That such ports above referred to shall not include ports which are known to be smuggling bases.
“Provided further: No exportation, as above mentioned, shall be permitted when the shipper is unable to furnish satisfactory evidence that goods are not to be transshipped at sea or transshipped at port cleared for to foreign ports known to be smuggling bases. Also, that all shipments shall be covered by a bond to produce duly authenticated landing certificate as covered in Paragraph 2, Page 3, of the Convention Between the United States and Cuba to Suppress Smuggling of March 11, 1926.37 Provided further: That nothing in this law shall be considered as repudiating the aforementioned Convention or any other Convention or Agreement between the United States and Cuba in connection with smuggling.”
Please keep the Department fully informed of all developments regarding this matter, to which great importance is attached by both this Department and the Treasury Department.37a
Very truly yours,
- None printed.↩
- See footnote 49, p. 437.↩
- Not printed.↩
- Foreign Relations, 1926, vol. ii, p. 23.↩
- The Embassy acted upon the request of the Department “to discuss this matter with such persons” as it deemed appropriate. Subsequently, despatch No. 6934 of August 5, 1936, reported that “the Senate yesterday evening voted down the bill, which had previously passed the House of Representatives, abolishing existing restrictions upon the export of alcohol from Cuba.” The Senate action was taken “in the face of the great pressure brought by the interested Cuban distillers.” (811.114 Cuba/722)↩