Reference: Tels 9? and 11? Jan 27 from Trujillo.
Repeat Trujillo.

I fully appreciate delicate and very embarrassing position in which Chargé d'Affaires and Canada have been placed in Trujillo by recent decision of Canadian Government made known in House⁶⁹² to refuse export permit for 12 Vampire jets to Dominican Republic. The impact of this decision added to our lack of purchase of sugar is bound to have serious and perhaps lasting effects on future relations between Canada and Dominican Republic.

2. It is unfortunate that this application coincides with threats being made by new Cuban Revolutionary Government against dictator-led Latin American countries with special reference to Trujillo himself. In the circumstances the Canadian Government had very little choice indeed in their decision and it is impossible to disagree with them. If Batista and his entourage had not sought refuge in Dominican Republic I suppose it might have been possible to leave door ajar a bit suggesting this matter could be reconsidered six months hence by which time Castro and his government should have become so engrossed - if they persist in their attempt to reform form of government in Cuba and his popularity throughout Latin America dimmed (see my telegram 23)⁶⁹³ - that export of perhaps a few planes could not be considered as a provocation by Cuban Revolutionary Government and would definitely have been a palliative for Trujillo.

3. As far as Canadian interests are concerned in Cuba particularly Havana I presume it is fully realized in Ottawa that situation created here by UK sale of aircraft and munitions to Batista⁶⁹⁴ is still seriously affecting all Canadian companies operation here. When John Scali's news item from Washington was reproduced locally we were besieged by phone calls by Canadian firms in Cuba asking us to stop deal at all costs as if it went through a number of Canadian firms might well have to close down. Perhaps I should point out one third of all foreign branches of Royal Bank of Canada are located in Cuba.

While claim of Canadian companies was I believe somewhat of an exaggeration there was obviously general rejoicing when text of Mr. Churchill's statement was reproduced here.

[H.] ALLARD

⁶⁹²Voir Canada, Chambre des communes, Débats, 1959, Vol. I, p. 308.
See Canada, House of Commons, Debates, 1959, Vol. I, p. 294.

⁶⁹³Non retrouvé/Not located.

⁶⁹⁴Voir/See Documents on International Affairs, 1959 (London: Royal Institute of International Affairs/Oxford University Press, 1963), pp. 389-91.