104-10172-10041
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KOUTING AND RECORD SHEET
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tolen this cover sheet will be destroyed when the
document filed.
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ENCLOSURE
ABSTRACT
DATE MICROFILMED
INDEX
FORM
6100
USE PREVIOUS
EDITIONS
FILE NUMBER
ว
3
2
:
201-251853
nemic Mény olubą?
DOCUMENT CATE
DOCUMENT NUMBER
21
Any 1959
SECRET
НКН -02130
(40)
}
Do Not Reproduce
RETURN TO CIA
Background Use Only
14-00000
*=
SZ
OPERATIONAL AND SOURCE COVER SHEET
REPORT NO.:
BAR-2130
NUMBER PAGES: 2
NUMBER ENCLOSURES:
Sone
REFERENCES: _None
FROM: Habana
ALKE
REPORT MADE BY: Nelson L. Raynock/psa"
REPORT APPROVED BY: Woodrow C. Olien
DATE OF REPORT: 21 August 1959.
DISTRIBUTION:
By copy for
पु
1
-
Orally to:
1
Headquarters w/Est
- Embassy (Eccronic Counselor)
Legal Attaché
Filos
-
SOURCE CRYPIONYM:
See Comments below
SOURCE, OPERATIONAL DATA, AND COMMENTS: ·
SUBJECT: Cuban Economic Crisis
OPERATIONAL COMMENTS:
05.
Field File No. 6-0-120
IG NO:
✓ NO.:
KRYPTON:
☐ Yes
08
☐ No
[Source Alberto FERNANDEZ Rechavarria, Ehe chief of the Cuban Sugar Stabilisation
Board who has the job of selling Cuba's sugary A former active member of the 26 of
July Movement during the revolution, he is now disillusioned, and reportedly is not
going to last much longer in his job. He is wealthy and his family have lost
through CASTRO's economic reforms. He appears to know a lot about the goverment and
also seems to have an insight into CASTRO. He regards CASTRO as some type of a
UNIVAC machine, his mind automatically photostating details which he can and will use
in the future. He says that CASTRO is ruthless, and that nothing can stop him in his
determination to do something, i.e., agrarian reform, and that he will sacrifice his
friends, his family, his money, and his fortune to accomplish his purpose.
Again illustrating the present situation in Cuba, the source said that he cannot
publicly have contacts with American officials-refusing to let the writer use his
telephone and he said that a record is kept of all his calls and that his movements
are periodically checked.
The advisor who warned CASTRO in paragraph one of the attached report, was the
source.
As a possible reference to this report and particularly to field comment mumber
two, see HAVA-2526. TDCS - 3/400,583
The second source referred to in Field Commant No. 2 was AMPACK-1 who obtained
his information from the president of the Banco Industrial de Cuba.
08.
APR 1953
FORM 51-591
PRE NOUS EDITIONS MAY LIED
CS COPI
HKY-2130
201-251853
14-00000
• EVALUATION OF SOURCE
FIELD INFORMATION REPORT
C. Fany able 10 hush Ma
Not reliable 'Arphed to
Perability canto visie inspired to untested or to ukently
A. Car cietely reliable 4. Usually reliable
sources of douberal bonesty or loyalty, regardless of their competence). I
tested sources.
.
PPPRAISAL OF CONTENT
false
6. Cannot be judged.
1. Confirmed by other independent and relict sources
Documentary. Based on original document.
2. Probably true. 3. Pass te 4. Doubtful
S Molaty
COUNTRY
Cuba
SUBJECT
С Cuban Economic Crisis
DATE OF
INFO.
PLACE &
July-August 1959
C-O-N-F-I-D-E-N-T-I-A-L
REPORT NO.
HKH-2130
DATE OF REPORT
21 August 1959
NO. OF PAGES
2
REFERENCES
None
DATE ACQ. Cuba, Habans (20 August 1959)
SOURCE EVALUATIONS ARE DEFINITIVE. APPRAISAL OF CONTENT IS TENTATIVE. NOTE FOREGOING EXPLANATION.
SOURCE
Cuban Government official (F).
Appraisal of Content: 3
1. Contrary to the reports which are issued by the Cuban Government, the
financial status of the Cuban economy is rapidly deteriorating and
becoming a serious problem. During July 1959 an advisor to Prime
Minister Fidel CASTRO Rus.) warned him to proceed more alowly with the
agrarian reform, because the Cuban treasury was running short of funds.
It was pointed out that 57 sugar mills were barkrupt and had not paid
the plantation owners for the 1959 sugar crop. CASTRO was told that
if the reckless confiscation of agricultural properties continued, the
Cuban Government would become obligated to assume even more debts in
order to alleviate the hunger of farm workers.1
2. Another drain on the economy is government subsidies. For example,
the Banco de Desarrollo Economico y Social (BANDES, Social and
Economic Development Bank) controls about U. S. $400 million in
properties and investments such as the Compañia Cubana de Aviacion
(Cuban Airline Company). The companies have been caught in the
present contraction of capital and cannot survive without goverment
subsidies. The subsidies paid by BANDES amount to U. S. $8 million
a month, and this is only one example of the many payments which are
draining the Cuban treasury.2
Field Comments.
1. From the reports which have been received it appears that there is
growing unemployment of farm workers. This is the "dead season"--
the period between sugar cene harvests--but it is reported that
most plantation owners and ranchers are fearful of confiscation of
their properties for the agrarian-reform program and consequently
are doing very little in the way of maintenance work. The latter
provided at least a marginal field of employment, and this is now
denied to the agricultural workers. However, In spite of this
warring the agrarian reform program has not been alowed. In
fact, it seems to have been intensified.
:
DISTRIBUTION
C-O-N-F-I-D-E-N-T-I-A-L
20/-25/03
J
14-00000
5..
The source thought that nothing could stop CASTRO in his determination
✓ to proceed with the agrarian reform program as fast as possible. Since
the biggest obstacle to carrying out this program is the lack of money,
the hource was of the opinion that CASTRO would do anything to obtain
this money and might even confiscate bank accounts and moneys and nego-
tiable instruments held in safety deposit Saxes. Carrying this one
step further, the source thought such confiscatory tactics could only.
be a temporary saving device and that eventually it would be necessary
for CASTRO to obtain a large loan from another country. He speculated
that this 
would mean either the United States or the Soviet Union, and
feared that if it were the lattery it would mean the end of friendly
relations with 
the United States. In respect to CASTRO's possible
need for a loan, another, fairly reliable, source reported on 18 August
1959 that CASTRO was trying to obtain a 30,000,000-peso loan from local
banks.
Cuban
75966
TE Yi
C-O-N-F-I-D-E-N-T-I-A-L
401-251553
1769.10
201-251853
1251353
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