Created: 2/15/1960

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Initiates Economic Tigs With Cuba: Thefor discussions of renewed diplomatic relations "attime"hift in Soviet attitude fromof the past year to active support of the The new relationship will be viewed with alarmLatin American states, which have been apprehensivedevelopments and of Communist influence in tbe

The agreement to buyons of sugar in the next five years means that Soviet purchases in Cuba will increase from an averagennually over the past five4-percent ofnnually at current sugar prices. About half of the USSR's total sugar imports in the past few years have been purchased from Cuba; these have been paid for in cash. 58 Moscow's annual sugar Imports from all sources haveons, and the USSR isto increase supplies for its domestic market.

The barter provisions ofons is to be.paid for in cash eachrequire Cuba to make substantial purchases in the USSR. Cuban imports from the USSR heretofore have been negligible.

0 economic aid credit, similar to that rejected by Mexico during Mlkoyan's visit there in November, is the usual Soviet offer when no specific developmenthas yet been prepared. The long-range effect ofredit would be further to support the growth of Cuba's trade with the bloc.

The USSR's expressed willingness to provide"if requested" suggests that Mikoyan did notCuba to seek military items at this time. regime, however, probably pressured Moscowaircraft, which it has been unable to obtainsources. Havana has publicly declared itspurchase aircraft from any country willing to sellhas takenublic subscription to finance such There mayoken delivery of militaryCzechoslovakia, whichCuban purchasingfall.

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