Sugar Deal

In Havana one day last week five Cubans boarded a Pan American Clipper, took off on the first leg of a 1,200-mile junket to Washington. Handpicked by President Batista, they were to start negotiations for the possible sale of Cuba's entire 1942 sugar crop--some 4,000,000 tons worth at least $225,000,000.

The U.S. is anxious to make a deal for two reasons. First, it would assure the Army and Navy of high-test molasses, one of the chief raw materials in making industrial alcohol, which is essential in smokeless powder (TIME, Oct. 13). By purchasing the entire crop, furthermore, the U.S. would avoid future open-market competition--especially with Britain. Already this year such head-to-head bidding has lifted Cuban sugar prices 230% to 2.5-c- a lb., highest since 1928.

Advantage to Cuba is that it would help stabilize the island's mercurial economy. But many Cubans (especially sugar growers and grinders) are not too fond of stability when sugar prices are rising. The U.S. negotiators may run into trouble aplenty. In Havana last week, an executive of the Cane Planters Association blasted the plan, declared: "We believe the 1942 crop can be sold advantageously at market prices during the year."

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