14-00000 tr 4a ee a ) ‘ : é Le] i} a ned ES the unstable political situation under the Batista regine and the ecunomic insecurity of the new Castro regire, a Of the above mentioned exports, 97.8% were to Free World countries and only 2.2% f Lins impoth 4 to Cormunist countries. ‘Import-wise, 99.9%,were made from Free World countries, while 0.1% were wade from Communist countries. Cabal, laced ibis lo, Wiser 5 pets Thus, ve can conclude that Cuba was ot421-very-much dependent upon the Free World a 4 . ao a bakis , pen bnan but ae ae : =-trade—wise = durina 1959, Further, at least $ 623,800,000 (97.8% of total exports) 3 3 was collected in hard currency. i. ‘ 2) In 1960, Anastas Mikoyan visited Cuba and the Cuban-Soviet trade agreement was | } - Signed, The effect of this agreement is immediately apparent when viewed through Cu 4 : 2 j ba*s foreion trade figures. . : E Total trade value decreased in 1960 to $ 1, 168, 000, 000 from $ 1,305,700,000, Free... sna ete pn e seedy a eat fart hE Cha zaey the eanletnmnedatitag te nie He the mae on Fa re satire ee naw any ym sem tonremad caterers <* aoe 4 ie . World participation decreased more than proport ienately, the value of Cuban trade . Ha - _ with the Free World was $ 897,000,000, while trade wath Communist countries increased ' ee t $ 271, C00 000 (or 23.3% of total trade) versus $ 1,269,900,COO0 and $ 15,890,000 A . a | A : "respectively in 1959, “6 i F 2 2 .The trade balance was in favor of Cuba in the amount of $ 68,000,000 as control | 3 of imports, especially from the Free World, established in 1959 was having its effect. dy. a 3) In 1961 the whole foreign trade picture was transformed, It was almost the . aS reverse ef 1960, Total trade amounted to $ 1,253,600,0C0, of which Free World parti- j 4 cipation represented $ 348,600,000 (or 27.8%) and Communist trade $ 905,000,000 (or SG “ 4 . s + - & fe be . aS We ean. Look: at this another way. In 1960, Cuban exports earned $ 467,000,000 in . "i sift Miers ES Se se hard currency. tn 1961, the hard currency earninas anourted to $ 166,800,000 since the $ 486 »100,,000, value of Cuban exports to the Communist. counties represented “agreement i a value® or “nominal hard currency value® as the trade was “ivetes under barter agrees u SoS & lotemshdud’St tnbpcubih oe et ee ments , with the: Soviet Union providing about 10% to 20% ofv tte total Cuban export value pis I age a - 5 ad {n convertible currency. : yee vege oe ae Bet cee RE Sa eee es ES, ’ * cy 9 Vin Shards abenindiioats oer ae oot cna
“ty pe Me cen se er CRAB INY pene omen ath : ate ge catt Ta te DIME a * TRAE 22 aR FE a yumee Rt . i Sate NT Cuba was now dependent, economically, upon the Comaunist World, especially the Soviet Union. <The fact that Little hard currency was obtained from its new trade part- mers further comm! fed Cuba*s economy to the Communist Bloc. } 7 q 4) In 1962, the trend continued, Total trade was $ 1,257,000,000, of which | me $ 1,031,000,000 (82.1%) was with the Communist Bloc and only $ 226,000,000 (17.9%) with Free World countries. os : . oat Another phenomenon appeared during 1962, The Soviets, who had been careful not to press Cuba during 1960 with regards to their trade balance (which was favorable to ‘Cuba by $ 31,000,000), were shrewd enough to close the gap during 1961, The balance was favorable to Cuba by $ 11,200, 000, 3 = rete etme ane Tn ae SGieariy, | the Seviet pressure was on, In 1962, Cuba faced a $ 227,000,000 deficit with the Communist countries. Comoounding this is the fact that by 1962 Cuba had spent 4 30.6% of its hard currency reserves in Free World marketse nveaeree secianes ne neo tk ect epee heey Ration tthaiatte 2 inhi rete vt qantas ate tinea isaac tlhe Dependency upon the Soviet Union arrived to stay as trade with the Communist World Ln - - represented 82.1% of total trade and imports from the Communist area bed, for the first d = ("time surp as sed Cuban exports to the Bloc. 5) Two interesting developments occured in 1963, First of all, total trade with the Cemmunist countries maintained the 1962 level ($ 1,031,000,000 in 1962 and . @ $ 1,054,900,000 in 1963), ,But, the Soviet Union tightened the grip by increasing its exports ‘to Cuba to $ 688,900,000 (in 1962 they represented $ 629,000,000), while Cuban Aa, . : ‘ “+ bitten, thane} exports to the Communist Bloc decreased to $ 366,000,000 (in 1962 they represented was $ 227,000,000). * Te At the same time, Cuba attempted an ce advantage of an increase in the price of at 8.48 ets? per pound during this period). ereased to $ 354,300,000 (in 1962 it had $ 402,000,000), Thus, the imbalance for Cuba increased to $ 322,900,000 (in 1962 it Aa Cotes approach to the Free World markets by taking sugar in the world market (sugar averaged — - 4 Cuba"s total trade with the Free World in « been $ 226,000,000). 4 Nevertheless, the 1963,trade balance worsened-for-Guba~as—it showed a $ 323, 2200 ,000 deficit, -The-Free-Horid-ceuntrieswere-able_ta turn the tables. an Cuba (as in 1962 ae iteteane ee was mca ne
14-00000 bleh ee Mba kata SET beh en ce fue ti ee Be RN SE hy aE eet ~mcmacumagniorn-- heeee Control of the situation, On January 20, 1964, Cuba was signing a trade agree= , Sugar production to the Soviet Union for the next six years. The amounts Cuba agreed —gurrency purchases, and-feund -Stsetf with almost no, hard currency (the average price i _ of suoar had dropped to 2.12 cts. per pound), During 1965 Cuba faced the Soviet Union eRe o SS na they had a $ 12,000,000 deficit on the trade balance with Cuba and now Cuba was a als frret Moat $ 300,000 ee pie tas Pree Wood , 6) For 1964, a favorable world sugar market (average price of 5.86 cts. per pound) ; . wbtbied eis Re etait oc, abebiiESyialt yviabastbe iar leis atllsl nelle in aad ieihd nab warwthg yh tae las Beecher sath mddaecidatey encouraged Cuba to continue its flirtation with the Free World. The Cuban treasury was able to handle some hard currency for the first time in the Castro era and Cuban commercial missions were sent to Europe and Japan to purchase items no longer availabe in Cuba, ye, i Total trade increased to $ 1,722,000,000 and the Free World participation increased from $ 354,300,000 (25.2%) in 1963 to $ 612,000,000 (35.6%). The Free World spending Spree tock its toll as the trade balance with the Free World showed a $ 30,000,000 de- ficit for Cuba. And here, we are speaking of a hard currency losse : i, Not even in the midst of Cuba*s affair with the Free World did the Soviet Union mete nea nermnwemete lpn eben tir u feSA i ' ment with the Soviet Union by which it was commiting about half of its planned future ¥ peor 7” . . oa ‘ . 2st + seSnedb tliat dmindenadaal bitin  orlad bedatnace san. oa ogee lie to deliver to the Soviet Union were: 2,100,000 metric tons in 19653 3,000,000 in 1966; 4,000,000 in 19673 4,000,000 in 19683 5,000,000 in 1969; and 5,000,000 in 1970, The Soviet Unicon did agree to fix the price of Cuba®s sugar at 6 ets. per pound, which perhaps seems generous in 1967, but hardly a good offer on January 20, 1964, as the price of sugar on January 19, 1964 was 9,50 cts. per pound. Adding insult to injury the Soviet Union did net include in the 1964 trade agreement its previous commitment \ to provide Cuba with 10% or 20% of the payments in hard currency as it had dene in the f | 1960 agreement. ; . a : 7) -By 1965 Cuba was sending few trade missions abroad s~virtuaily- ceased-its-hard Ae Camenae th ha cl more empty handed than before and the general trade situation returned to 1963 levels except that by now the Communist countries had more participation and the Free World : 4 = i NOC ecient om ae saben
’ a git nw rmanayeRTAar nT) SET Ts eT te SE Bong ce te Nee vom ee nn res oaks. bony Aydt Rane, ‘ + ® ‘ aoe ie ott ‘ . a ancictenihsess Ladtitsne sibs cit a ae. t raed ™ = 5 - had less. Total trade amounted to $ 1,551,000,000 (compared to $ 1,410,200,000 in 1963), but trade with Communist countries reached $ 1,195,000,000 (compared to $ 1,054,900,000 in 1963), Trade with the Free World remained at the same level = $ 354,200,000 in 1963 and $ 356,000,900 in 1945, but saith a difference - the Cu- | ban deficit in its trade balance with the Free World rose from $ 300,000 in 1963 to $ 60,000,000 in 1965, * nll seanb ea — och 3 So, the Soviets continued in control as trade «ith the Communist countries rem presented more than three quarters of Cuba"s total trade for that year. The sugar 2 Bs. er production had already been mortgaged, the sugar market was depressed, and Cuba was : more and more dependent upen the Soviet Union. * * ° 8) Then came 1966, Sucar prices decreased to an average of 1,86 cts. per pound, Total trade decreased to $ 1,465,000,°00 as compared with $ 1,551,000,000 in 1965. ote adel oe _ _anunwwy,, co EQade with Communist countries alse decreased (from $ 1,195,900,000 in 195 to tad $ 1,160,000,000 in 1966) and the Sevietswere able to rush a Little further and in = peel creased Cuba's deficit in the trade balance from $ 119,000,000 in 1965 to $ 200,000,000 3 in 1966. — oot Free Worid.countries also cained. Total Free World trade decreased to $ 305,000, 00 a (from $ 336,000,000 in 1965), but the Cuban deficit increased from $ 60,000,000 in 1965 to $ 65,000,000 in 1966, Our conclusions follow: FIRST : Cuba is economically dependent upon the Soviet Union. SECOND : This dependency is increasing. It has risen from le2t in 1959 to 19.2% by 1966, RE a ’ woe od -" Ye buttress this cenelusion we point out that: , ae - &) Cuba has mortgaged ° ‘its ‘sugar production to the Soviet Union, * B) Cuba has exhausted itsshard currency reserves, While an exéet Figure As, 3 not available we estimated it to be about $ 20,000,000, in December 1964, °° : “& - ae ; Cc) Cuba does not receive hard currency from its trade with the Contant countries under the present barter acreements. act e ° r a +388, oat Sane + et o , ire eet wero FgSie matali esd ise Bastia batfaem aS bnw ten aber wenn «aint Dak 3 is 4 “
cid “ae chat MTS ETE CE ae so an 1. yore > rae Lea OE tee eae APF rece vB yeas Bie tener on, aaa Tre pee gS a Se athe ge POT eae an cere a a Pha Rea et a “ . * - ° * 4 . oR * : * Prat . vom . . * *. é “3 eet ? al 2 a @ § «= a - 3 4 Pa “a D) Cuba has a $ 1,132,000,000 trade deficit with the Communist countrles wep ow ° 3 for the 1963 ~ 19€6 period, Nor does this figure include Communist technical assis~ tance, military equinment, scholarships, and the like, + S shal Siee ctedcbibleatte ste libd btn THIRD: Cuba has lost its position az a meaningful trader in the Free World, which # in turn has increased its dependency upon the Soviet Union. 7 7 a8 ‘ a "34 Note.> For a statistical surwary on Cuban Foreign Trade for the 1959 = 1966 period f and for a graphic presentation of the above analysis see attached Table No. 1 ! _ and Charts Nos. 1 to 6,< | ‘% terre ats ees eh SL meee chen ‘ . . Py “, ak Pe ‘ . . " aI EGP peat apt I Agree ies a letie EAT ge arte . “ote sae AIS He hae gine Ot Pang send SD OG Ge ent aP hi me PL cant a ee RET wan Mer REE AAT ARE 4 TPE MRE IYI FORA GD ET at ys taal Rat EPEAT OAT AA Re = " ; < 3 Ao Bt j os i 4 « Es aoe 3 a — e . . - - i “ie -3 e Mea Atinns ont Cita a Dias Latah Shenae ae a feet we C eg 5 emeteertcle re 1 * . ' 6 - . i - . = 7 ‘ t _ vy = ‘ : e ° * 4 oo . 2 3 o m° i i 3 FS ie - * . «
er t ? i « ’ ' 5 { :  emrsas a eR ar a eee . * coe aes ae i PV bt re : 1 : . ny t = ‘ ee P ‘ 2 abe : “ee 5 4 2& yo t . a ROE oC ROG PR 33 : dead 5 a 3. 2 = ReN Serseeeroerce TE " ZEB ONS | Eo reas : at <9 Bs JL GQ 3 rf : 2 W} 7 : oOo » @ : = é Y B Sacer TE chitin Mea Tau ae tata @ = 2% “ an) : ps & | LWT TTI IAB” ss E ° ym ~£ 5 . . + : a" ¢ 3 ae ei oy EES 2 #9 te ts & & & o° & & & ° *) @ ] Ce) ° 232 af ses Ses eR REE 4 . & f . ec C | i} ee Reese ae ot nn a - iene Nef cans H 14-00000