THE CUBA REVIEW 17 



U. S. Department of Commerce in Cuba 



The following report on the representation of the United States Department of 

 Commerce in Havana, Cuba, was taken from the Annual Report of the Director, Bureau 

 of Foreign and Domestic Commerce. 



The representation of the Department of Commerce in Cuba was established 

 September 14, 1921, and the work has been in charge of Acting Commercial Attache 

 Chester Lloyd Jones, aided throughout the year by Assistant Trade Commissioner 

 Charles Alfred Livengood. 



Because of the difficult economic conditions through which the Cuban market has 

 been passing, the work in connection with trade adjustments has assumed an importance 

 m the activities of the Havana ofifice greater than it would under normal conditions, and 

 of the four outstanding factors in the economic position of Cuba — the sugar crop, the 

 bonded warehouse problem, the general credit situation, and the banking liquidation — • 

 this office has been more closely connected with the first two. 



Memoranda and reports have been prepared on the surplus of previous Cuban 

 sugar crops, governmental regulation of marketing, the probable current crop, and the 

 tariff that will be levied abroad on Cuban sugar. During the continuance of the Sugar 

 Finance Commission, Acting Commercial Attache Jones was in frequent conference 

 with its members. 



One of the most acute problems in the economic readjustment of Cuba has involved 

 the goods stored in the bonded warehouses created to relieve the congestion of the 

 port which occurred in 1920-21. Goods of an invoice value of $68,000,000 to $80,000,000 

 were reported as still unclaimed in these warehouses in September, 1921. Against the 

 desire of the Government to close these warehouses at an early date, representations 

 were made to avoid the consequences of a broken market, the subjection of local houses 

 to ruinous competition, and the rendering uncollectible of many debts owing to foreign 

 creditors — with the result that on November 14, 1921, legislation was passed granting 

 the request for the estabhshment of a period of 120 days during which goods could be 

 reexported. Later, on March 2, 1922, in compliance with new requests, a decree 

 was issued extending the reexport period for goods in general order or declared in bond, 

 but making no definite statement concerning goods declared for consumption. 



As this legislation did not clear the situation, representations were continued, and, 

 after a series of conferences with Cuban treasury officials and President Zayas, a decree 

 of May 26 granted the reexport privilege to goods declared for consumption, and at 

 the same time an extension of the reexport period to August 31 (previously extended 

 to June 30, 1922) was allowed. Meanwhile, after conferences with officials of the 

 customs and treasury departments, an informal agreement was secured under which 

 the New York Board of Underwriters was authorized to make at its own expense an 

 inventory of the goods actually in the bonded warehouses. The inventory was begun 

 in March and practically finished late in May. As the lists of goods in the various 

 warehouses were corrpleted, copies were delivered to the ofifice of the acting commercial 

 attache and thence were sent to American firms concerned, with notices as to the 

 reported location of the various shipments in which they might be interested, setting 

 forth the information available and their rights under the various decrees of the Cuban 

 Government. During the months of April, May, and June a large portion of the time 

 of the staff was devoted to this work. 



A very large amount of the goods turned back to the shippers was reexported to 

 New York. These shipments often reached large totals for individual firms. Because 

 of the delay in the sale of the goods by the Cuban Government, much of the stock 

 found its way into the local market, the goods being withdrawn from the warehouses 

 as demand developed, thus (to the advantage of both Cuban and foreign interests) 

 avoiding a break in the market through forced sales. Many firms were enabled to 

 locate goods they had considered lost or were able to reclaim them and avoid sales 

 for customs duties. 



The innumerable complications in the warehouse situation occupied the constant 



