Evening star., 1927-04-26
CUBA IS PREPARING
SER|OUSDEMANDS
MaChado's Visit Prelude to
Requests for Tariff Changes
and Tobacco Concession.

The American tour OF President
| Machado of Cuba is prelude to some
| exceedingly serious business. His mis-
| sion of good will cloaks n sharply
| defined drive ON the part of Cuba To
exact from the United States several
| tariff and trade concessions. which the
! island republic sorely needs for her
| own economic advancement. The
| Cuban Presidents round of social
! visits is no holiday junket. lie is at
| tempting some face-to-face nego-
| tiations with Mr.. Coolidge and with
| American political leaders, bankers
and business men.
| First of all, Cuba seeks Il revision of
! the treaty of 1903. Under this treaty
| Cuban products imported by the
/ United States are guaranteed Il 20 per
/ cent reduction from prevailing tariff
| rates. This tariff preference applies to
all commodities, but it is only two
sugar and tobaccO-which are OF real
concern to Cuba, and these concern
| her vitality.
Wants Rate Adjustment.
Cuba wants readJustment of her
differential rate. She asks that the
| ~ per cent reduction be increased to
~ per cent. Such a change, Cuba be.
| lleves, will spell the difference be-
tween loss ana profit in her sugar in
| duStry, and viii restore the prosperity
| OF the island. Cuba is in deadly ear.
| nest in her demand for this concession
III tariff rates on sugar and tobacco.
! The island has been passing through
a severe economic depression due 10
low prices in the world markets on
| her basic commodities. Cuba has
helped herself in part by arbitrarily
curoing sugar production by govern.
ment edict. Now she asks the United
States-her liberator, her best friend
and her biggest customer-to do its
bit to aid.
| To date there has been slight re.
| sponse in this country to proposals
to modify the treaty. But ii kind
| words fail--and the result of Presi
| dent Machado's visit will largely de
| termine that-then Cuba is ready tC
try the policy of coercion. Cuba s
| club lies in a boycott of American
| goods. Signs of this are already in
evidence in the trade figures. Cuba's
| total imports slumped in 1926 anG
this is explained by her hard times,
but the hgures reveal that this coun
| try's share .of the total likewise
diminished, which means that Cuba
bought elsewhere goods which she
had previously bought here.
Demonstrations Against Americans.
| Anti-American demonstrations ir
| Cuba, which have cropped out spas
medically in the past two years, have
been hushed up, but they are signifi
| can't OF the undercurrent of feelins
| in the island quite out of line WITH
| President Machado's laudatory words
of the moment. Flattery is a time
honored eXpedient in diplomatic ne
| gotiations. So the Cuban President
arrives in Washington with a media
and ribbon for Mr.. Coolidge and g
| warm invitation for our President tt
visit Cuba.
| The real teeth in Cuba's boycot
threat is her own new tariff law
formulated but not yet promulgated
1t is being held in allegiance ready Il
| use If necessary. Cuba is bound bs
| the treaty to give to the United States
| preferential tariff rates ranging from
reduction of 10 per cent to 40 per
| cent, but she can set her rates as high
as she pleases. Her prospective new
tariff schedules are highly .'protec.
tive" on manufactured goods-the
very goods which America sells her
| in great quantities. The trade OF
| American automobile makers with
| Cuba, for example, which is large, will
| be hard hit by the prospective in.
creases in Cuban duties.
Has Another Demand.
Cuba has another demand and an.
other weapon. Her demand is the
repeal of law which has been on our
| statute books since 1866, prohibiting
| the importation of cigars or cigarettes
| in quantities of less than 5000. Cuba
regards this ban as specially aimed
| at her. She has been repeatedly
| promised that it would be repealed
| but Congress has failed to act.
| From the Cuban viewpoint it is nc
| longer a question of expediency but a
question of honor. 1t may make
| little difference in her tobacco trade
with the United States, but Cubans
insist that the promise be kept. Her
weapon is her power to cut off the
| parcels post.
Cuba sends very little merchandise
| TO the United States by mail, but
| American business with Cuba by
parcels post is large. In 1903 mail
treaty between Cuba and the United
States was made permitting packages
by mail up to a limit of pounds 6
ounces. In 1926 a temporary parcels
post convention was made which
raised the limit to IL pounds. Cuba
is delaying making it permanent until
Congress lifts the ban on importa.
tions of cigars and cigarettes in small
quantities.
This repeal measure was slated for
passage at the last session but was
sidetracked. The effort will be re.
newed at the next session. If it fails
then, Cuba will not only terminate
the present temporary parcel post ar.
rangement, but threatens to abrogate
the mail treaty, which would mean
that nothing could go to the island
by mail except by the payment of
first-class postage rates. American
business men are alive to this poten-
tial jeopardy of their trade relations
with ClIha