Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-02-02
Cuban Millers
Sell IT Sugar
U. S. Signs for Output;
High Costs Squeeze
Small Plants
By Rose Martin

HAvANA.-In Cuba it is said
shalt the inhabitants live off sugar
and the other half lives of
them" However that may be, a
sudden influx of cash sent by Uncle
Sam sweetened Christmas for a
large portion of the Islands popu-
lation. Some SIS, 100000 in retroac-
tive pay raises was spread among
100000 in Cuba's billion-dollar cane
sugar industry.
This present" according to Sen
ator Jose Manuel Casanova, domi-
nant figure in sugar politics since
1884, headed off dangerous unrest
at a moment crucial to sugar pros
poets. for l947. In view of the fact
that the crop must be cut and
milled between January and May,
cuban cane is especially sensitive to
we'll timed pressres.
The money arrived in two Treas
ury checks for 100000 and $5,-
100000 payable to the Cuban In
stitute of Sugar Sterilization. The
date was December II. Two days
later the entire amount was ex-
pended, based upon labor increases
agreed upon by mill owners, plant
ers, sugar union and government
leaders on December 10. Labor fric-
ton ceased abruptly. At daybreak
January 2, the 1947 harvest began
on schedule. .,-> =
May Total Over s4oo,Ooo,ooo.
The multimillion-dollar Christ
mas gift was advanced" by the
Commodity Credit Corp. as final
payment on the 1916 crop and as
a token purchase against the
1947 crop. Excepting 100000 tons
for Cuban use and 100000 tons for
other world markets, the United
States has once more agreed to buy
the islands raw sugar output under
contract extending control in both
countries until 1913.
Final cost Is expected to run over
$4O0, o00, 900, with the price pegged
to the cost of living index in the
United States, where Cuba buys
most of her food and manufactured
goods.
Ninety-two per cent of Cuba's ma
tional income comes from sugar,
and from all indications the 1947
crop will be the biggest since 1929
estimated as high as 100000
Spanish long tons. The United
States normally consumes $500, 900
short tons of refined sugar.
Senator Casanova, one ofs four
Cubans who negotiated and signed
the 1867 deal with the CCC. is
a man Of many titles, among them
founder Of the Mill Owners Asso-
citation, chairman of the Finance
and Budget Committee of the Cuban
Senate, member of "a Senate COM
mittees. chairman of the Inter-
American Commission on Agricul-
ture and president and owner of
the big Orozco Sugar Mills, where
he started as a field hand at -.
Regimes come and go, but his
prestige remains. In an interview
he declared that the small mills
are the heaviest sufferers now that
the labor picture has been cleared.
With production limited, their costs
are squeezing" them, he said.
Bag Shortage Feared.
1--WE have really given the workers
everything they asked, at great
sacrifice to the industry" he said.
"At the same time we came to an
agreement with the Government,
permitting it to pocket all sales re-
turns over 3.675 cents per pound
from sugars authorized for sale on
Cll6 WOtlQ IlldI hCb-6OO,OUO tOlS Ill
1916 and SOC, 900 tons in 1947."
Senator Casanova said the grav-
est threat now is an acute shortage
of jute bags, obtainable only in
British India and required by CCC
contract. Though 21,000,000 were
ordered and paid for in Calcutta
last July. only a fraction had
reached Cuba, he said, declaring
that the United States should in
tervene to guarantee receipt well in
advance of the end of harvest in
May.
While Senator Casanova reflects
the view of the majority of the
mill owners. it is only fair to state
that others do not 60 along with the
controlled price-market theory de-
spite its security aspects. They say
&C. MARTIN. Page C-5l