CUBAN SITUATION: ECONOMIC AGREEMENTS WITH BLOC; LATIN AMERICAN YOUTH CONGRESS;

Created: 7/28/1960

OCR scan of the original document, errors are possible

In bis letter ofto ridel Castro on the seventh anniversary of the

founding ofh of July Movement, Khrushchev seemed to beurther effort to calm tbe adverse reaction evoked throughout tbe world by histhreat to use missiles against the United States ln the event of intervention against Cuba. Although taking tbeagain to accusecircles" in the United Statesrlvlng, by an economicdeby planning toainst Cuba, to destroy tbe

revolution, he declared thatpeople are not nloaestruggle, and pledgedr-J tho Soviet Union would givecn necessary support" ln caseIntervention.

These less belllgereat statements, ln no vsy committing

CUBAN SITUATION

tbe Soviet Union to any specific action, folio* closely on tbe Joint Cuban-Soviet communique1 issued onuly at tbe close of Raul Castro's four-day visit to Moscow. Khrushchev at that tine resorted to tbe ambiguous phrase "use everything toUS armede minimized the likelihood of thim by saying that the USdisavowing any intention foroveommitment assumed before the entire world. While the communique makes clear that the US statement was issued aftor Khrushchev's threat, it refrains from claiming credit for it, even by Implication.

The communique's omphasls on "economic repression" and Sovlot readiness to make up for supplies cut off by tho seatrade rather than aid basis tends to divert attention from

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Agreements With Bloc

Communist China's newpact with Cubs narks the first Chinese trade and aid effort in the western hemisphere and probably foreshadowsof diplomatic relations. The pact calls for Peiping toons of Cuban sugar annually during the next five years ln exchange for Chinese rice, textiles, and Industrial products. As now envisaged, total Slno-Cuban trada will amount tomore than China's past trade with all of Latin America. The Chinese also offer to extend long-term credits for industrial development and to sendto Cuba. Details forrogram are to be worked outuban delegationeturn visit to Peiping.

By stepping ln to absorb tbe cut ln Cuba's US sugar quota. Moscow and Peiping bavethe drastic reoriootation of Cuba's oconomy toward tbo bloc. The bloc now bas agreed to purchaseons of Cuban sugar this year--worth Bloc purchases may anount to as much as one half of total Cuban sugar sales; they already exceed tbe amount sold the United States.

Shipments of bloc goods to date bave been confined chlofly to Soviet oil and fertlllmers, but macbloery and equipment from bloc sources will soon beginln quantitj

the first major shipments of bloc trucks, buses,equipment, sod agricultural machinery will probably begin in August and bo stopped up

rmance to date

Cubanajor Of-to carry out ts. Thelus mounting see, make Cuba expanded eco-lth the bloc.

Under both trade and credit agreements, tho bloc Is toCuba with somecompleteangingteel plant to small workshops turning out light Industrial products. Tho total cost of machinery and equipment for theseis estimated atot including tbe steel mill. Bloc technical assistance is to be furnishedarge scale.

Soviet porfo in exploiting tho Hon Indicates tb fort will bo made tbe new commitmen ised economic aid bloc sugar purchadependent on noalc relations *

Latin Aaorlcan Youth Congress

Tho long-planned Latin American Youth Congress, which began officially onuly in tbe Sierraajor propaganda effort to promote the Castro and Communist goal of "liberating America from USmportant groups la Venezuela, Bolivia, Chile, Peru, and other countriesthe meeting because of Its expected Communistbut delegates from nearly mil Latin American countries are taking part. Host SinO-Sovlet bloc nations sont

prominent Latin American leftist leaders la Cuba for the celebrations oauly included former President Arbenm ofleft bio Uruguayan exile despite Montevideo's warning tbat be would not beMexican Communist

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leader Vicente Lombariio Toledano, who /lew to Cuba0 July aotl-Trujillo labor conference in Caracas.

Pro-Castro groups In otber Latin Anerlcan countries have bona active with demonstrations of support for Cuba fined to coincide roughly with thef July anslversary. Couly ths Yoneiuslan Chamber ofunanimously passed asupporting "the struggle of the Cuban people for their nationalmove which may strengthen the band of toe pro-Castro foreign la bis differences with President Betsncourt overof the Castro regime. In MexicoaftlBt-aponsored mass demonstration is planned toruly In ostensibleof President Lopes Hateos, but probably with the Intent of pressing bis government Coirmer pro-Castro stand.

Internal Opposition

Prominent Cubans areto resign theirand further defections are likely. Dr. Peres Claneros, alternate Cuban repreaestatlve to tbe OAS Council, resigned over the pro-Soviet treed of tbe Cuban Government, yoraer President Carlos Prlo Socarras reportedly Is prepared to Book asylum In an embassy In Havana if tbe Castro government refuses him permission to leave for medical treatment in Spain in early August.

Despite tbe lack ofamong anti-Castrothe increasing security measures being taken by the government reveal its concern over internal opposition.

arrestscontinuing, and militia units under armyare reported to bebeach areas of Havana Province to prevent clandestine attempts to enter or leave Cuba by sea.

Fidel Castro allegedly lm receiving more protection la order to prevent attempts on his life. ossibly different light in cast on these protective measures by tbe comments made to OS-Ambassador Bonsai by tbe Argentine ambassador In Havana concerning his Interview with Castro onuly. The Argentine ambassador, who knows Castro veil, got tbe impression that the prsmler did not feel free to apeak frankly with him In the presooce of "Com" Guovara and hadirtual prisoner of Guevara's pro-Comauoist clique.

On the economic front, Enrico Mattel, bead of the Italian Oil monopoly, baaected an Initial Cuban request for him to assume fullfor operating thebut he is consideringrefinery equipment and technical assistanceash basis. Officials of the seized reflnorles lo Cuba say access to rsplacemeot parts Is likely to be Cuba's biggest problem in running them.

Vest Germany continues to delayradewith Cuba, and Bonnbave recently expressed concern thst tbe Castro regime, annoyed at these hesitations, nay grant diplomatic to East German'

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