THE CUBA REVIE TV 



Havana Correspondence 



Havana, December 23, 1921. 



Sugar: Contrary to the belief which existed until a very short time ago that the 

 new grinding season would be late in getting started, there are thirteen sugar mills already 

 under way with many more expected to resume operation within the next week or two. 

 While there are some mills which may be expected to hold back awaiting more settled 

 conditions, it is believed that the majority of them will fall in line with those mills which 

 are now grinding and begin operating at an early date. 



There are still over 900,000 tons of last year's crop stored in various warehouses 

 throughout the Island awaiting disposal, which, together with the new crop which will 

 soon begin to accumulate rapidly, will present a serious problem if the same chaotic and 

 disastrous conditions which existed during the past season are to continue. Numerous 

 plans have been discussed relative to disposing of the sugar now on hand, one of the most 

 feasible of those so far advanced being to allow about half a miUion tons of this sugar to 

 be sent into the United States, free of duty, to be refined for export sale. This proposal, 

 of course, would first have to be ratified by the United States Senate before such action 

 could be taken. As yet, however, no definite action bearing on the question of the dis- 

 posal of these accumulated sugar stores has been taken by the government. 



Official announcement has been made that the dissolution of the Sugar Finance 

 Commission will take effect on January 15th. This Conamission has been the target for 

 much criticism ever since its inception and, with the sugar interests again in a position 

 to negotiate independently for the sale of their sugars, it is hoped that sales will be 

 stimulated. The primary object for which this Commission was founded, namely, to 

 prevent the price of raw sugar from falling below a fixed price by controlling the amount 

 permitted to be sold, has never really been attained and it has been charged repeatedlj' 

 that the Commission has acted in the interest of favored parties to the detriment of the 

 industry as a whole. 



During the past month there have been numerous protest meetings and manifesta- 

 tions throughout the entire Island, against the enactment of the Fordney bill, in so far as 

 that measure relates to the sugar industry of Cuba. The culmination of this feeling was 

 a large demonstration held in Havana on Sunday, December 18th. It is contended by 

 the sugar interests that should the sugar schedule now proposed under the Fordney bill 

 be enacted it would result in the ruin of the sugar industry in Cuba. That tliis \'iew of 

 the Fordney act is shared by American business interests in Cuba is indicated by the 

 participation of the American Chamber of Commerce of Cuba, the Rotary Club and the 

 American Club in the demonstration. 



The news of the death of Mr. R. B. Hawley, President of the Cuban- American Sugar 

 Company and a member of the Sugar Finance Commission, in New York late in November 

 was received with deep regret in Cuba, where Mr. Hawley was widely known and had 

 many friends. He was appointed a member of the Sugar Finance Commission by 

 ex-President Menocal in February of last year. 



Financial Conditions: Economy is the watchword in government circles at the 

 present time and the probable outstanding feature of the financial situation in Cuba at this 

 writing is just how far Congress is willing to go in reducing the budget, for upon this very 

 important point hinges very largely the question of whether or not Cuba will be granted 

 the $50,000,000 loan, negotiations for which are still pending. 



It is stated that the word has been passed along by the State Department in Wasliing- 

 ton that the annual budget for government operation in Cuba must be reduced at least 

 to 150,000,000 and kept within that figure. In line with this proposed economy in 

 government operation, several departments have alreadj^ submitted greatly reduced 

 estimates for the ensuing year and it is generally believed that a still further pruning will 

 take place before the estimates are finally decided upon. 



