Ka Hoku o Hawaii, Volume XXXVI, Number 20, 10 September 1941 — Cuba Resents U.S. Price Peg [ARTICLE]

Cuba Resents U.S. Price Peg

CuM, tfir«t countvy wlthf whieh tho Statos m > £Otsat j a ro<MpiN>Wy tfA<to (Si>ptonU)or. uiulor i>raotli eal ap|»liration of P r«? aide n 11 Roosr it •* k xvl-tt<u.g'htvr ; 1 s \ t o firsit tAtin Am<r-j iean rcpub.n wlum*? l>a»ic indus-j try h»s felt tlw weijfht of V. S. i cfforts t< *ntr%>3 ooninH>dSt> pHt-j rs as a paK of \t& g*n<rralj sdifn»s of uati»naS tl«?£ens<?. i Hend*rsott, adoiinistratur| <*r tho Offu«» of Pno< v Adiministratkm aiui CiviVi&n ekto jm>ttvt Uir Viutc<J *svnsu?nn uitviu« prioc a<tv*nvH», liīkf » % t a of A.5 c*nU « pouin! <>ts ra\v sug&rs, 4<? hv*mi in New ,York, duty pa*<i L**4fcrs of tlwr C\ibaii sujg,ar md«stry. oUj?r invporUat indu*trni aiwi ootnm*tvi*.l fi£urv«, Uie presa «L»d «\st\ *onve p*rsous hish ia

government circles, immediately ass a 11 eei Henderson's step as ' ruinous to Cuba's economy." It was pointed out that the imposed price was 30 points helow the | prevailīng market price of sugar, and some Cuban commentators said that the price-fixing might give rise to "fifth eolumn" activities in Cuba. Oiie of the outstanding leaders ln the sugar industry warned, in Havana, that serious socio-econdmic diaor<īers ■nigiit be provoke<L

Quota 2, 811 552 Tons j Under the termc Of the quota j arrangemeht, Cuba !s gran t e d 2,374,852 s]iort tons of raw sugar for shipment to the United States for the current crop year. Cuban sugar enjoys a special preferential tariff rate in the United States. It pays 90 cents a hundred pounds—a tariff established by special treaty, arrangements. The price-fixing gave rlse to an outburst of indignation in Havana whieh evoked such suggestions as possible restriction of su§ar e.%perts unless a satisfac'ory price, somewhat higher than the cents a povvnd figure, could bo obtained in New York. Cuba's minister of sta t e, Dr. jose Manuel Cortina, dispelled this idea, however, \vith the" assertion that negotiations through diplomatic channels for a satisfaCtory solution had been started. There liave been certain suggestions that the problem eah be solved through fixing lower maximum freight rates on Cuban sugar or through a further reduction in the preferential tarlff rate. In the latter case the eonsumer, in his generaī role ak tax- \ payer. would pay, in a more indirect form through increaaed taxes to make up the loss of ineome as obtained through the eustoms. Prosperity Dream Fades It is likely that many Cuban growers and producers had hoped for a return even in a more nu>dest sc.ale, of t.he prosperous conditions that prevalled during and following the World War when the average prico of raw sugar f fduty pāid> in New York rose I from 5.753 eerits per pound in 1 1916 to an all-time high of 23.57 cents in 1920. j The average retail price paid |by the XJnited States consumer Jin 1920 was 19.4 cents a pound. ! Cubans still refer to those | times of fabulous sugar prieos las the years of "las vacas gordas," the fatted cows. Tliey were comparat>le to the days of the early 1920's in tho T T nitcd Stiitos ' when niechanics wore §10 silk shirts and drove sports model cars. Cubans of every walk of !ife \vere "in the nionoy." Streets sweepers woro diamond riiigs, and ward politicians sliopped in fash!onable jowolry shops for pearl necklaces with as little ceremcmy as their wive.s show today in buying 10-cent store Irwclrr. | blMds' Debts Heavy The prosperity gave rise to i pians for gratiaiose public works

whieh were carried out later wilhi effects that were liUle short of | disastrous to Cuba's economy andj poiitical stability. The national j highway and the Capi'ol in Ha-j v&na were built, and the Ma- j chado Admimstratiojn ga v e the j country a spectacle of graft andj j i»iagovernment seldom seen any-j j where, Cubans still are paying, | for the spiurge, through heavy. taxation, and thousaijds st i 11, mourn tlie death of close rela-j tives who lost their iives by litical assassination and in bitter, ! political and social revolutionary | conflict Uiat followcd iu the strug-; to nd Uio isituui ol" ita dic- ] talon> wiio climbed to power by. 4*i\musuvg prosperity iike in the] | ti<ue oi higii sugar prices. j j Hoiders of Cuban Pubiic Works | Bouds, largely modest investors j īn tiie United States, also helped j j to pay, ior tlie issue was in de- j j l'auil for a long period and fi-t J nally, when service was resumed, l botii intereat and amortizatian I arrears were scaled .down. j | The action of. Henderson also , wiii hit Puerto Rico's sugar uij dustry, but its effect on Cuba is lot paramount importance froiv j Uie viewpomt of Pan-Ameriean (leiaUona iu. gene r a U and Uk> } good-ueighbor poiicy in particu|Ur. --'.II

I Ma aku la i hoopuka , «t «, H<jpe Ki&aina caiaries j lliU 1 he ku&haua c hoike aiia no i aoho hou ana. o ka Ahaoielo j iU * ke kau kuikawa ma ka la 15 i o Sepatemaba nei. i Ua lioike ae o Hile oke kuni u | o keia kahea ia ana. o ka ahaoiseio " na ka noouoo aiia ina ka- | iiawai anie na haawina dala i ma- | kemakeia e na hana kokua lahui (O keia manawa.''