THE CUBA REVIEW 25 



the latter figure, Cuba's production being thus equal to about 23% of the world's total 

 production. 



The United States has bought, during the eight fiscal years 1914 to 1921, on an 

 average, about 80% of Cuba's crop each year, which represented an average of 58.3% 

 of the sugar consumed in these years in the United States. Of all the sugar imported 

 into the United States, including that from Hawaii, Porto Rico, and the Philippines, 

 during the last eight fiscal years (1914 to 1921), 66.8% came from Cuba. Our exports 

 to other countries besides the United States during the last eight calendar years (1913 

 to 1920) were, on an average, 630,800 long tons per year. Tables VI to VII which 

 accompany this letter contain ample details regarding the production, imports, exports, 

 and consumption of sugar in the United States, and also show, comparatively, the 

 magnitude of the Cuban sugar industry. 



Since the 27th of December, 1903, a treaty of commercial reciprocity has been 

 in force between the United States and Cuba. It gave to Cuban products a 20% rebate 

 in the tariff duties of the United States, while reductions from 25% to 40% were granted 

 on articles imported into Cuba produced or manufactured in the United States. The 

 duties actually paid on goods imported into Cuba from the United States, during the 

 calendar years 1911 to 1919, when reduced to an ad valorem basis, averaged 13%. On 

 the other hand, the average import duty paid by Cuban sugar (96° test) in the United 

 States during the same period was 35.5% ad valorem. Our tariff rates are, therefore, 

 favorable to the United States, and in none of the numerous official informations pub- 

 lished by the Government of the United States regarding commercial relations ^vith 

 Cuba is any criticism to be found of our tariff rates as hindering the development of 

 the trade of the United States with Cuba. The fact that our imports from the United 

 States over a period of years are considerably less than our exports to the United States 

 cannot be considered as a factor which is adverse to the United States, since Cuba pays 

 in dividends and profits to American companies and investors in interests on loans, 

 in freights and in other ways many millions of dollars each year to the United States 

 and sends to that country raw materials almost exclusively to be worked over by Ameri- 

 can industries and, in the case of sugar, to be refined and sold in large quantities to 

 foreign countries. Cuba purchases from the United States, on the contrarj^, mainly 

 manufactured articles. Moreover, whatever benefits are derived by Cuba from her ex- 

 change of commodities with the United States are largely shared by American citizens 

 who have very extensive commercial, industrial and financial interests in Cuba. The 

 trade of the United States with Cuba has been increasing steadily, but no doubt a larger 

 part of our imports could be supplied by the United States than at present, and if Ameri- 

 can manufacturers and exporters endeavor to develop their business with Cuba there 

 is no reason why the goods that Cuba needs to import should not come more and more 

 from the United States. 



The proximity of Cuba, connected by rail and telephone with the United States, 

 the opportunities which Cuba offers to the United States as a field for trade and the in- 

 vestment of capital, and the close relations in many other respects which exist between 

 the two countries, are circumstances which will no doubt weigh considerably in the deter- 

 mination of any tariff legislation which seriously affects Cuba. We, therefore, hope 

 that the tariff policy which will prevail will be that of giving Cuba the opportunity of 

 selling her products in the markets of the United States, under the most favorable con- 

 ditions that are possible, in return for reciprocal treatment for American goods in the 

 Republic of Cuba. 



The Emergency Tariff, approved on the 27th of May, 1921, was to be in force for 

 only six months, but this period will probably be extended until such time as the Perma- 

 nent Tariff is enacted, and this may delay yet many months. Cuba's new crop will, 

 therefore, almost certainly be affected by the increase of the dutj^ on sugar, unless Cuban 

 sugar is exempted from the increase of duty estabhshed by said Tariff, and the previous 

 rate of one cent per pound is restored. Such a concession to Cuba we judge to be a 

 vital need under present circumstances, and we therefore take the libertj^ of bringing 



