Memorandum of Conversation with Secretary of State Dean Acheson, Foreign Minister of Cuba Carlos Hevia, Ambassador of Cuba Oscar Gans, and Mr. Walker

S 001769 DEPARTMENT OF STATE 622 165 Memorandum of Conversation DATE: May 16, 1949 SUBJECT: Courtesy Call of Cuban Foreign Minister eathers THINK ARCHIVES AND MATIONAL RECORDS PARTICIPANTS: The Secretary Beñor Garlos Hevia - Ouban Foreign Minister Ambassador Osear Gans - Ouba Nr. Walker - CRB COPIES TO: S - U - ARA - ITP - OP - OFD - Mr. Young Amembassy, Habana (informally) 1-1493 The Cuban Foreign Minister, during the course of a courtesy call, took occasion to bring to my atten- tion a number of problens which are of concern to the Cuban Government. He said that Cuba is going through a period of postwar readjustment which involves a reduction in sugar production, a factor of great economic importance to Guba. Sugar production this year, he said, will be approximately 18 per cent less than last year, and a further reduction of 20 per cent is expected next year. He vent on to say that this retrenchment in Cuba's ecenomy is a political shook, and that his Government, in an effort to offset it, is desirous of carrying out an extensive public worka pro- gram involving the construction of rural roads and aqueducts. He pointed out that in this connection the Government is reducing its budget by approximately 30 per cent, which will mean the dismissal of aone Government employees, a situation which will be unpepular from a political point of view. He feels that a public vorks program will be of material help in preventing any widespread unemployment. He said, however, that financial assistance will be required from the United States in developing Buoh a program. The