Created: 9/22/1960

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Castro regime has la -tbe past week seized the Cuban branches of all three US banks In Cuba, and the properties of several Anerlean-owned firms were taken overesult of the nationalization of theindustry oneptember. With these moves, allew of the Anerlcan companiesin Cuba--once valued atillionare in the hands of theCastro therefore mayto the next USbyew "popular assoably of the Cuban people" to annul the Guantanamo base treaty. eptember hethreatened such action, and oneptember Raul Castro repeated tho threat and also declared, "go will nationalize even the foreign spies, if

Tho Cuban Government Is giving heavy propaganda play to espionage charges against two US Embassy staff members <ta*-and to the alleged "indignities" suffered by Fidel Castro In New York. The protestin Havana oneptember led observers to comment that the crowd seemed unusuallyand determined and could easily have been Incited toif the government had so -desired. Castro's address to tho General Assembly is oxpocted toirade againstolicies all over the world.

Oneptember, theCuban Workers' Confederation sent cables toabor unions throughoutthe western hemisphere and to the Communist-front Worldof Trade Unions and the Confederation of Latin Asorlcan

Workers appealing forof solidarity with tho Cuban UN delegation.

Although the counselor of the Soviet Embassy in Paris told an American officialhat the Soviet premier had no intention of going to Cuba and would talk to Castro in New York, preparations are undar way in case Khrushchev decides to visit Havana lot

tro^elonoats to hostile demonstrations.

ftr&tj'According to rollableormation, the cargo of thevessel Ilya Hechnlkov, which delivered the first largeof bloc.arms to Cubaeptember, included tenntiaircraft guns, machine guns, large quantities ofand electronics equlp-.atontjtuAt least,part^f'the.armsch'origin, "There is' ,ndlcation fromaircraft were included. AnotherSoviet merchant ship, tbe Hikolay Burdenko, may be en routeew shlpnent of bloc arms.

On the domestic front, the government is faced withpopulars many as ISO persons are reported under

arrest in Hatanzas Province as the outgrowth of clashesanti-Communist and pro-Castro denonatrators begl&nlcg ooeptesber. Several aatl-Commualsts were wounded when tbe police and allltla firedrowd of denonatrators.

Guerrilla activityIn the Kscasbray Mountains of Las Villas Province, and an American enginuer workingydroelectric project in the area reported oneptember that the situation was becoaing too dangerous to continue the proj ect. He said that prolonged gunfire is heard, nightly and that travel even le daytime la becoaing hazardous, Be reported that one guerrilla band isposed ofell-armed and well-trained soldierswith the Caetro movement.

chief in personally dlreotlng the antlguerrilla operations. Several embassy sources report that large numbers of regular army troops and militia moved into tbe Escambray area during the week endingeptember.

Tbe economy is showing the effects of tbe regime's drastic economic and fiscalThe cost of living isand consumer goods aremore scarce, furtherthe public. Theoil refineries have been forced to restrict theirbecause of shortages ofatalysts used ln tbe refining process.

Soviet petroleum isthan the Venezuelan crude for merly laported and produces less of the heavy fuel oils now In short supply. The relatively high sulfur content of tbe Soviet

crude is causing corrosion of the refining equipment,and theare having difficulties in obtaining spare parts. Heavy lubricating oils are also ln short supply, and the regime is attempting to force privato companies that normally purchase these products to front forpurchr



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