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[4]104-10172-10041 2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992 |
[5]. & ~_KUU SHEET = 7
[7]TING ANU RECORD SH
[9]nd Use Only
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[13]me . oo FROM: NUIE: 19 the ubserce of comments or indication of ection
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[43]ENCLOSURE . Fi c
[44]3 ~
[45]te S Wi
[46]OATE MICROFILMED : COCUMENT CATE *- OCUMiNT NUMBER . 3 [oom
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[49]3, Gar 14 x4 1 HEH -02130 %
[50]OR ana (nnn
[51]Neq te 8 tions SECRET («)
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[56]Reproduced .
[58]Do Not
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[70]FROM: _ Habana _ REPORT NO: ERR-20_
[72]REPORT MADE. By._Neleon Ly Samnock/psa\ jp __NUNEER PAGES. 2
[73]REPOR|_APPROVED BY: Woodrov C. Olien  __ NUMBER ENCLOSURES:_ None
[75]DATE OF REPORT: 22 August 1959 REFERENCES: None.
[78]By copy tor Se Headquarters v/mst
[79]1 ~ Embassy (Eccnonic Counselor)
[80]Ontlyt: 1 = Legal Attaché
[82]2 ~ Files - Field File No, 60-120
[83]SOURCE CRYPIONYM:; OS™ ~ ONOD IS NOs
[84]See Commonts below ; “KRYPTON: (Yes | [No
[85]SOURCE, OPERATIONAL DATA, AND COMMENTS: : a . . : Sy ~
[87]SUBJECT: Cuban Econcale Crisis
[89]coma, comms: BS. os OF
[91][Source Alberto FERNANDSZ Rechavarriay (the chief of the Cuban Sugar Stabilisation
[92]Board who has the: job af selling Cuba's A forzer active mxbder of the 26 of
[93]July Movezent during the revoluticn, he is no# disillusioned, and reportedly is not
[94]going to last much longer in his job, He is wealthy and his fanily have lost
[96]. through CASTRO's econunic reforms. He appears to know s lot about the goverment and a - a
[98]also seems to have an insight into CASTRO... He regards CASTRO as some type of a
[100]DNIVAC machine, his mind automatically photostating detaiis vhich he can and will use |
[102]in the future. He says that GASTRO is ruthless, and that nothing can stop hin in hia
[103]determination to do semething, i.e., agrarian reform, and that be will sacrifice his
[104]friends, his family, his noney, and his fortune to accomplish his purpose.
[106]Again illustrating the present situation in Cuba, the source said that he cannot
[108]- publicly have contacts vith American officials—refusing to let the writer use hia
[110]telephone——and he said that a record is kept of ali his calls ami that his movenents
[111]are periodically checked.
[113]the advigor who warned CASTRO Jn paragraph one of the attached report.was t the
[115]- source,
[117]Asa possible reference to this report and particularly to fiald coment mmber
[118]two, 800 HAVA-2526. ras - 3/¥o8, 543 -
[120]“The second source referred te in Field Comant No. 2 was ANPACK-1 who obtained
[121]his information from president of the Banco Industrial de ¢ Cube]
[123]OF.
[125]HS-2130 |
[127]AE 1-59 mrs commsmrawin ES Phe Y ae
[129]26 p> 2 SAVES ZB
[133]\ee oo -- FIELD INFORMATION REPORT
[135]~ .
[136],
[137]a , | CVALEATION OF SOURCE A Cor gta reakte  E Unuatty rela C Same coatle Dhol ues erate € wot relate Applied ts
[138]~ sources of deuberu! aone.ty of lopady. regardiess of thelr competence), $ Kevaiiity cane be pl gce tAggbed to catested of le rulthtwotly
[139]” tested sources, _t :
[140]+ PPPMAISS GH CONTEWE 1 Contiemed by other ngepencent ant religds sources 2, Probably re, 3. Posed hve | & Dosttfel § rolaty
[142]fetee 6. Cannct be judged. Daxonentary. Badd on orginal docoment.
[147]COUNTRY Cuba REPORT NQ, \ RRH-2130
[149]suBect € Cuban Econonic Crisis DATE OF REPORT 21 Auguat 1959
[150]NO. OF PAGES 2. co cect vee
[151]REFERENCES . None .
[153]DATE OF
[155]raee gay net 1959
[157]DATE ACQ. ba: 2n A t .
[159]SOURCE EVALUATIONS ARE DEFINITVE. APPRAISAL OF CONTENT 1S TENTATIVE. NOTE FOREGOING EXPLANATION.
[161]SOURCE: Cuban Goverment official (F),
[162]/ Appradsal of Contents 3
[164]: 1. Contrary to the reports which are issued by the Cuban Government, the
[166]H : _ financial status of the Cuban economy is rapidly deteriorating and
[168]l ; beconing a serious problem. During July 1959 an adviser to Prime
[170]: Minister Fidel CASTRO Ruz, warned hin to proceed more alowly with the
[171]agrarian reform, because the Cuban treasury was running short of funds.
[173]. . It was pointed out that 57 spgar mills were barkrupt and had not paid
[175]°° the plantation owners for the 1959 sugar crop. CASTRO waa told that
[177]if the recklesa conflacation of agricultural properties ccutinued, the
[179]Cuban Goverment would become obligated to assume even more debts in
[181]order to alleviate the hunger of farz workers.1 ;
[183]2. Another drain va ths economy is government subsidies. For exanple,
[184]the Banco de Desarrollo Economico y Social (BANDES, Social andl
[185]Economic Development Bank) coutrols about U. S, $400 nillion in
[186]properties and investuents such as the Compufila Cubana de Aviacion
[187](Cuban Airline Company). The companies kave been caught in the
[188]presont contraction of capital and cannot survive without govarmment
[189]subsidies, The subsidies paid by BANDSS amount to U. S. $8 million
[190]4 month, and this is only one exemple of the many payments which are
[192]draining tne Cuban ‘treasury .2 +
[194]Eleld Comments.
[196]. —_——_
[198]1. F : ived 1% appears that there ia
[199]grvuwing unemployment of farm workers, This is the “dead season"—
[200]the period between sugar cene harvests—but it is reported that
[201]most plantation. owmers and ranchers are fearful of confiscation of
[203]: their properties for the agrarian-reform program)/and consequantly
[205]: are doing very little in the vay of maintenance work. The latter
[207]i provided at least a marginal field of employment, ‘and this is now
[208]denied to the agricultural workers. Hewever, spite of this
[210]warring; Yhe dgrarian-reforn program has not been alowed. In
[211]fact, it seems to have been intensified.
[213]C-O-N-F-I-D-E-N-T-J-A-L
[215]| DISTRIBUTION
[217]| bon: aie [— S71
[218]| ETS
[219]a Po.
[222]* C-O-R-P-1-D-~E+8-T-2-4 +L
[225]AY
[229]2. the sburee thought that nothing could stop CASTRO In his determination
[230]LC to proceed with the agrarian reform progran as fast as possible. Since
[232]the biggest obatacle to carrying out this Program is the lack of money,
[233]the ‘hource was af the opinion that CAST would do anything to obta‘a
[234]this money ani might even confiscate bank accounts and moneys and nego-
[235]tiable ‘rstruments held in safety deposit doxes, Carrying this one
[236]step furthar, the yource thought such cocfiscatory tactics could only |
[237]be a teaporary saving device and that eventually it would be necessary
[238]for CAST: % obtain a large lean fraz another country. Fe speculated
[239]that this woald sean either the United States or the Soviet Union, and
[240]feared that if it were the atter/it would rean the end of friendly
[241]‘relations with the United States, In respect. to CASTRO's possible
[242]need for a loan, another, fairly reliable, source reported on 18 August
[243]1959 that CASTR) was trying to obtain a W0,000,000-peso loan from docat~
[247]fom We SY SEG