Evening star., 1949-07-31

Illc CCO1lOII1IS WCAuiC Va SAAS Az
land depends not only upon our
purchases of large amounts OF
sugar, but upon more or less even
purchases year after year. Fortu-
nately for cubans. sugar produc-
ton is still below normal in war
torn countries. The Philippines
have not yet recovered from the
Japanese occupation, so that the
demand for Cuban sugar has held
up. But this demand will certain
ly fall of as soon as other pro-
ducing areas get back into full
production. The price of molasses
has already dropped to almost
nothing.
The present sugar act runs un-
til 1852, a little over two years. It
takes nearly two years to plant
and grow new crop of cane. The
question with Cuban growers now
is. shall they increase or decrease
production. AS one Cuban official
asked, Suppose we go ahead and
reduce production so that prices
may hold up, and our economy
does not slump. and there should
suddenly be war. what happens
to you?"
Need Industries
For these and other reasons. it
is argued that, flrst Of all. 1t would
be to the advantage Of all con-
cerned If this country could settle
on a long-term policy and pro-
gram governing the imports Of
sugar. Second, it would be to our
best interests, and certainly to
Cuba's best interests, to arrange
it so that island producers can
count on a quota sufficiently sub
stantial to guarantee us ample
supplies not only in peacetime but
in any emergency as well. In turn.
this would enable producers to
look ahead, plan their production
with certainty. keep their mills up
to date and assure reasonable
income to their stockholders. who
may be you or me. any of us any
where in the United States.
This" as one spokesman for
the industry points out, lis in
effect what President Truman
says he wants to do for new in
vestors If Congress will okey his
point four program. But" he
went on, very few new investors
are likely to come into Cuba. or
any other Latin American country
unless they can be sure of a rea-
sonable profit and return on their
capital over a period of years.
And" he added. they will GER
tainly make their investments on
the basis of the experience OF
those who are already in the va
rious countries"
But there are things the Cubans.
as well as the people of our own
and other countries where United
States capital is invested, should
also bear in mind. First of all,
they need these industries. They
themselves did not have, and
many still do not have. the capi-
tai to build them. Not only that.
without the vast United States
market many of these enterprises
could not exist.
Foreign companies not only
take their own capital. 60 in and
build up industries which give
employment to- local people, pay
all kinds of taxes to local govern
ments, high and often exorbitant
wages to local labor. but they also
find and maintain the markets for
their products in the United
States and other countries in the
world. We often subsidize other
markets outside of our own coun-
try. as we are now doing for
Cuban sugar in Europe.
One of the chief criticisms
heard in Cuba today from both
native and foreign businessmen
is directed at the governments
policy toward labor. As one Cuban
expressed it. 1T any Of your people
think that Cuban labor is poorly
paid, or exploited, let him come
here and try to do business" The
wages and salaries of sugar work.
ers are today at an all-time high,
and have been frozen at that peak.
A worker who got 500 a month in
1914, now gets $239.50 a month.
He also gets months vacation
with pay and other social and in
surance benefits.
Efficiency Declines
The same condition applies to
all labor in the island.
There is no such thing as the
wholesale firing or laying of of
workers because q firm wants to
economic or because its business
falls of, not without q court first
investigating and deciding the
matter. Even then all kinds Of
unemployment benefits, most of
them provided by the employer,
come into play
But 1t Is not 50 much the mat
ter Of the arbitrary fixing of high
wages to which Cuban business
and industry objects. It is the
increasing control over the opera
ton of business and the control
Of capital. foreign and native; /
which the government is giving to
labor, and especially the low pro-
ductive capacity and inefnciency
Of the average worker.
No one, of course. questions for
one moment the right and the
duty Of the Cuban or any other
Latin government to protect its
own laboring people, wisely con-
serve its resources and guard its
own political sovereignty. Nor
does any responsible United States
businessman in Cuba expect any
different treatment than is ac-