Created: 10/20/1960

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Cuban nationalization decrees ofctober and tba urban reform law ofctober bave tbe moat drastic social and economic implications of any eoasurea yet taken by tbe Caatro regie*. They virtually wipe out sources of Income for the upper and upper-Diddle class' ea. and give tbe state complete control over urban real estate.

usinessesonctober, mostly Cuban owned, represent the bulk of large and medium coopanlea that bad reaalaed la private bands, and tbey bave an'estlmated total value ofillion, Tbey range from theaters and department stores to railways and tbe Bacsrdl run The seizures complete tbe government takeover of tbe sugar and tortile industries. Tbe move la frankly explainedeasure to "liquidate tbeof certain economic classes" standing in the say of the revolution. Another law Issued tbe same day nationalized all Cuban private banks.

The urban reform law, which reliable sources reported to be under considerationear ago, eliminatesin Cuban urban aroas. All leases are declared void aad mortgage* canceled. Rentrm to be made to tbe state aad applied toaard purchase of the properties by the former rentera at prices set by tba government. Purchasers cannot resell without governmentand tbe state is to have tbe- first option to buy.

The government Is to pay the formmr owners an Income equivaleant to what they bad

recolved in rent, but only up0 per month; tbe excess goes to the state. Heirs of former owners get nothing. National and provincial urban eform councils sre set up to implement the law, tbaof which is stated to be to provide "every familyecent home." The law la likely to bave aa initial strong appeal to lower and alddle in-coae rentors in tbe cities, where abusive real eststebave long been prevalent.

Active opposition tocontinues aaong scattered groups inside Cuba deeplte the fear instilled by recentand the increasedrepression. Several hundred guerrillas are reported still active In tbe Eocanbray Mountaias despite government claims tbst virtually allforces have been liquidated Host souross agree that the guerrilla groups are poorly aimed and provisioned; among their biggestaok of uoity and popular ef-

orces personnel andaots of sabotage.

A blook-warden Inforaant systom, called fory Castro to control counterrevolutionary activity In tbe olties, baa reportedly already been Instituted ln Santiago, where tbe peoplethoroughly lntlnldated by recent developments. airly reliable source with government contacts reports tbat thebasewfor compuleory military



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training for all Cubans between tbe ages of

An insight Into Fidelthinking has beenby

who talked *itbnTa-Septonber. Castrotbe convictionoomed and the"finished"ictim of tbeof its political powerseelf-gratifylag Castro added"democracybaa andballoon." Tbemust be keptthe defensive, "le its state of confusion,"adding that b*tlng up on

Tbenill win th* ideological war and therefore, Caatro said, Cuba must Join with these oouatrles. Referring enthusiastically to Sovietaatro laid, "With allxcellent people in Cuba, we will defeat tho corrupt capitalistastro went to great length* to doacrlbe hi* self-ascribed role a* tbe rising loader of th* peoples of Latin America and Asia.

Although reports are still unconfirmed that Soviet BIG fighters bave arrived la Cuba

In one or sore of tbe threebloc military shipments thus far, such plane*on be sent to CwJM if they have not yet been,

tiig in their training in Ccochoelovakla. Report* of construction work by Czech and oviet personnel around Savana and near several air base*Involve placement ofguns and fire-control apparatua. Aotl-alrcraftae sell as machine guns and ateeps, have been among the equipment inSoviet ahlpnents. ourth major shipment of Soviet bloc military equipment is dueaboard the Soviet vessel Atkarsk.

Cuba appear* about to: Eaat Germany and would thus become ths first non -bloco--exceptdo *o. Tbe Cuban under secretary of foreignrecently told tbe West German ambassador that Cuba Intends such action andbis stateaent after the ambassador warned that this wouldiplomatic break with Vest Geraaay. umanian comnerclal delegation hasla Cuba, probablydiplomatic recognition andt wltb Bucharest



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