The events in Cuba and the United States
Washington, 21 January 1959
In this report sent by courier, we gave an account of the relations of the United States with the countries of Latin America, which - especially recently - are causing more and more problems for Washington. However, the biggest problem for the US government right now is the events in Cuba. This can be summed up in the fact that until March of last year, the American government officially supported the Batista government, which fell at the beginning of January, with weapons against the insurgents. Since March, an embargo was formally introduced on arms shipments to Cuba, but according to local news, shipments continued through Dominica. In addition, the American ambassador openly interfered in the internal situation in Cuba, specifically standing up against the insurgents. Add to that the fact that American business life is completely intertwined With Batista's regime, he supported it, then there is no reason to be surprised that even in Washington everyone talks openly about the anti-American sentiments of the Cuban people.
For more than two years, the fight to topple the ruling military dictator has been raging in the island nation. This shows that - unlike most Latin American revolutions - it was not a coup d'état1 or a palace revolution, but a broad movement aimed at overthrowing the government supported by the United States. Since the revolutionary events in Mexico in 1910, Castro's movement was the first such uprising. However, it should be added that in Mexico the fronts were much more crystallized and the struggle of the political right and left led to more radical results than Castro's movement in Cuba,
In the latter place, in addition to the appearance of the revolutionary branch, one can expect the emergence of a leadership with a conservative mentality. Until the Castro-appointed temporary public prosecutor. the president and members of his government are among the conservative elements of Cuban society. Of course, the uprising was not carried out or led by these people, but led by Castro, a group of Cuban youth whose goal was to defeat Batista's rule, from which they expected the emergence of freedom and democracy. All the signs point to the fact that the leaders of the uprising, and the entire movement in general, are incapable of developing any political philosophy and therefore have to reckon with the fact that they have less and less influence on the direction of events. Castro himself is not a member of the government, but the head of the army, and if the planned democratic elections are held within one and a half to two years, then it seems likely that his power will be greatly reduced in this capacity as well. There are other signs that the 32-year-old Castro has no dictatorial tendencies.
The current situation on the island is still quite confusing and contradictory statements
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regarding the policies of the emerging leadership appear almost daily. Therefore, all incoming news should be received with reservations. Below we try to compare our information:
According to official reports, the wave of executions of around 220 people continues. Several people in the American Congress sharply condemned the Castros for this and proposed the implementation of an economic, tourist and other blockade. However, the State Department did not accept these voices and is trying to deepen its relations with the new government. It is known that it recognized the new government within 48 hours, which was considered extremely fast-paced and was meant to make a deep impression on the current Cuban leaders. However, Castro did not distinguish between the differing opinions of the American government and the legislature, but rather caused quite a stir in the American capital, announcing that if the United States intervened in the internal affairs of the island and sent troops there, "200,000 gringos will die." However, the State Department swallowed this statement as well. The American government obviously does not want to add fuel to the fire, but - considering the island's strategic position, which is a very important factor here - tries to avoid friction surfaces.
The issue of American capital interests also plays a role in the above, during the 6 years of Batista's rule, approximately 800 million dollars worth of capital entered Cuba, more than half of which was American. Total US capital investments are estimated to exceed $1 billion. The most significant is Cuban Electric Co., which is entirely in American hands, and which supplies about 90% of the country's energy through its 6,000 miles of lines. In the past 3 weeks, a number of conflicting news have come to light in America regarding what procedure the Cuban leadership will follow in relation to foreign investments. It is known that 4-5 years ago, barely released from Batista's prison, Castro, under the influence of Mexican radical elements, took a stand in favor of the nationalization of public utilities, large companies, and especially foreign capital investments. However, he has not voiced these ideas recently, which means the enforcement of the policy of a conservative-oriented government. Despite this, however, the whole issue is still considered a big question mark in Washington.
As for Cuban economic life, briefly the following: as you know, the main product is sugar, of which more than 5.6 million tons were produced in 1958. From this - converted to dollars - there was an income of about 600 million dollars. The average price per ton is 4.35 dollars, compared to 5.20 dollars in 1957. The main buyer of Cuba's sugar is the United States, which received nearly 3.5 million tons in 1958. The second most important product is tobacco, which generated nearly 34 million dollars in revenue in 1958. There are iron, manganese and chrome mines, but their production has stopped for some time due to the fighting. Their yield is not significant for now. Of these metals, Nicaro Nickel Plant is the only one in the hands of the US government and operates with increasing production. Although under Batista's dictatorship the economic situation showed a tendency to improve in some aspects, the state debts are close to 800 million dollars. Foreign trade is also passive, and this is especially evident in the American context: according to estimates, in 1958, imports were 60-70 million dollars higher than exports. In order to put the economic life in order, the Cuban leadership is said to be trying to move forward based on the American New Deal and Fair Deal.
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The current situation of the Cuban labor movement is being watched with suspicious eyes in Washington, fearing that the Communist Party might emerge as a significant new factor. For now, it seems that the Cuban is leading and distancing itself from the communists. Their main argument is that the Communist Party - although opposed to Batista and many communists suffered from the dictator - did not cooperate with Castro's "July 26 Movement". There is some truth in this, the reason for which is that the communists apparently did not believe in the long-lasting and high-sacrifice movement, which had no constructive program and was led and supported by young people. Despite this, it seems certain that the Communist Party can operate as a legal organization. Its name is People's Socialist Party.
The situation with trade unions is even more complicated. Those - like Peron - were in the hands of Batista and their leaders either fled or were captured. For the time being, a friend of Castro's has been appointed Secretary General, but this is only temporary. The Minister of Labor recently stated about the situation of the trade union, which has approx. 1.6 million members, that during the planned in the near future elections, communists will be elected in minimal numbers. Here I also mention the part of the Minister of Labor's statement, according to which the biggest labor and national economic problems include the permanent reduction of unemployment, which usually hovers around 600,000 people.
Finally, regarding the relationship between Cuba and the socialist countries: until now there have been no diplomatic relations. However, establishing relations with the island nation of more than 6 million people would be very useful. Current reports show that the Cuban government does not wish - at least for now - to establish official relations with socialist countries. Urrutia, the interim president, recently expressed his objection to dictatorships, including communist dictatorships, and according to news, he indicated that he does not want to establish diplomatic relations with the Soviet Union either. After that, however, with Voroshilov's signature, the Soviet Union recognized the new Cuban government by telegram. He did not make any proposal for reviving diplomatic or other relations, but according to the information we received from the Soviet embassy here, they are waiting for the Cuban response in Moscow, which is delayed for the time being.
As far as we are concerned, in our opinion, it is best to take a waiting position at the moment. If the above-mentioned step of the Soviet Union leads to results, it would be worthwhile for us to examine the problem from time to time. We are thinking of establishing not only diplomatic, but also other, primarily commercial, relations. If the events were to develop favorably from this point of view in the coming period, during a possible trip to Mexico it might be worth visiting Cuba as well. In any case, we are monitoring the issue and will provide further information.
Tibor Zádor
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