SOVIET-CUBAN ECONOMIC RELATIONS, 1968-70 (S-3371)

Created: 9/25/1970

OCR scan of the original document, errors are possible

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USSK has continued to provide vital support for the Cuban economy. The Soviet Union accounts for store than half of Cuba's total trade andlow of credits89 that financed overercent of Cuba's imports. Moreover, Moscow purchases largo amounts of Cuban sugar each yoar at prices substantially abovo world market and providesconoraic technicians and advisors. There has been evidence at times that tho USSR wished to reduce its aid level, but continued weakness of tho Cuban economy made this impossible 8oviet assistance rose sharply.

Soviet-Cuban trade negotiations8 apparently were longerdifficult than normal, and final agreement was

a moderate increnso in trade butew Soviet credit7 million, the largest credit ever extended to Cuba. As the year progressed, Soviet aid was increased, because the poor sugar crop mode it evident

that Cuba could not fulfill its export commitment. As In tho past,'the

USSR maintained its exports at the agreed level and extended additional

credit to cover the largor than expected deficit. Cuba's total utilisation.

and development -

of Soviet credits for all purposes (trade deficit, tochnical/aid, and

interest on outstanding dobt)amounted0 million8 compared5 million

Trado negotiations9 do not seem to have been*

-While public announccawints were vague,

a new Soviet credit less than half8 amount. Events again forced an Increase in Soviet assistance, however, as Cubaoor sugar crop for Uic second yearow. Cuban exports to the USSH fell to the lowest levelhile Soviet exports changed little. Consequently, estimated Cuban drawings on Soviet credits rose to more0 million "

.Because of the large expected gain in Cuba's sugar output,0 trade agreement apparently called for the elimination of Cuba's chronic trade deficits with the USSR. Total trade was scheduled to increase by, reflecting planned Cuban sugar exportsillion metric tons, orimes9 volume. But Soviet exports to Cuba, it appears, were to remain unchanged. If this agreement could be fulfilled, Cuba probably wouldmall export surplus with the USSR. In fact,0 sugar crop fell short of expectations (even though it was by far the largest innd exports to the USSR will not be sufficient

to completely eliminate the trade deficit. However, Cuban drawings on

w.

Soviet credits0 probably will not0 million, the lowest figure

Chronology of Major Events in Cuban-SovicI Economic Relations

rade protocol8 is siencd. oderate increase trade is called for and tho USSR7 millionto-

ontract was signed by which tho USSR would provide technical assistance for the constructionertiliser plantons of nitrogenous fertilizer annually). This Plant probably wan to be financed under Soviet credits extended some years earlier.

ho USSR extendedillion credit to aid Cuba in tho repair and expansion of the sugar milling industry. The USSR hadreviously2 million in credits for this purpose.

2 - Trade protocol9 in nigned. No increase in trade la called for but tho USSRew credit of $U0 million.

rade protocol0 is signed. Trade is scheduled to

increase, all in tho form of larger Cuban sugar exports. No new Soviet credit is extended.

Original document.

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