Evening star., 1960-08-08
Cuban MiIitio Controls
Seized U. S. Properties

HAVANA, Aug. 8 (AP).-,
Armed Cuban militiamen were
in full control of most Of the
American property in Cuba to-
day following its naturalization
by Fidel Castro'S regime.
The revolutionary regimes
new retaliation against the
United States came only a few
hours before the islands Roman
Catholic hierarchy warned
against the increasing advance
of communism in our country"
It was the church's first
official criticism Of the steadily
increasing influence of the
Communist bloc on the Castro
regime.
Prime Minister Castro and his
ministers made plain, mean
while. that they stood firmly
with the Soviet Union as an
economic and military ally, re-
gardleSS Of what other Latin
American governments might
think.
Will Defy OAS
Foreign Minister Raul Roa
declared that Cuba would re-
ject any resolution the Or
ganiZation of American States,
at its meeting opening August
is. might adopt protesting
Soviet interference in the West
ern Hemisphere. He asserted
Russia'S offer to defend Cuba
against aggression could not
De interference in the hemi-
spheres internal affairs.
Mr.. Castro got out of a sick
bed to dramatically announce
the seizure of $770 million
worth of American-owned
property before a cheering
crowd of $4,000 at the Red
tinged Latin American Youth
Congress early Sunday morn
ing.
Within hours armed militia
men began moving into the
plants that included the Cuban
Electric Co.. the $500 million
subsidiary Of the American and
Foreign Power Co. of New York
and the largest single invest
ment in the island.
A ranking official Of the firm
told a reporter, 1--WE don't have
access to the building"
Other Businesses Seized
Other major American busi-
nesses nationalized were the
Cuban Telephone Co., in which
the international Telephone and
Telegraph Co. has a $2712 mil
lion equity; the Standard Oil
New Jersey refinery. about
$40 million: Texaco refinery,
$45 to $50 millionS Sinclair Oil
Co. operations in Cuba. worth
about SIS million; United Fruit
Co. properties worth $40 million,
and 36 American-owned sugar
mills worth about 5000 million.
Some of these plants had
been under Cuban government
control for some time but had
not been formally expropri-
ated.
Mr.. Castro said that the
seizures were in retaliation for
economic aggression" by the
United States-and made plain
he meant President EiSenhow-
er's slash in United States i'm
ports of Cuban sugar.
However, the seizure decree
did not extend to American
banks. the $75 million Moa Bay
Mining Co., the Nicaro Nickel
Processing Corporation and
other smaller American enter
prises worth about $500 million
in all. But Mr.. Castro indi-
Gated these may be taken over,
declaring I'VE can still take a
few things more away from
them (the Americans)
The appropriated property
will be paid for with 50-year
bonds at 2 per cent interest,
the decree said, but there was
doubt whether any payments
will ever be made.
With sarcasm, Mr.. Castro re-
peated an earlier announce
ment that the money would
come from one-fourth of the
value of all Cuban sugar
bought by the United States in
excess of 3 million tons yearly
at a premium price of 5.4 cents
a pound. Mr.. Eisenhower's cut
dropped United States sugar
purchases from Cuba below 3
million tons for this year, and
continuation of this policy
would leave the reimbursement
fund for American property
owners empty.
The bulk of the billion
dollar American investment in
Cuba has now been formally
taken over by the Government
Another American property
so far untouched is the big
naval base at Guantanamo
which the United States holds
by a 1884 treaty. But Mr.. Cas-
tro delivered a yelled threat of
an attempt to oust the Ameri-
cans from there. He told the
411