463. Telegram From the Embassy in Cuba to the Department of State1
2150. Fidel Castro February 24 in televised speech outlined government’s economic policy. Occasion was assembly of labor delegates organized by CTC to deliver pledges of workers to contribute four percent of earnings to purchase of government’s industrial bonds. Although Castro did not directly attack United States, he savagely and insistently attacked private foreign capital and foreign companies in Cuba. His statement of economic policy appears mark clean break with free enterprise system. Salient points:
- 1.
- Revolution must stand or fall on solution of country’s economic problems.
- 2.
- Unemployment is basic problem in economic difficulties and solution depends on creation of new jobs through agricultural and industrial expansion.
- 3.
- Living standards can not be raised by decree, but by increase in production and productivity.
- 4.
- Private investment, especially foreign private investment, not a solution. Foregn investment demands guarantees, sends its profits abroad, exploits the workers and represents colonialism with consequent enslavement of the nation. Any future foreign capital invested in Cuba must be in form of loan to GOC. Industrialization must be achieved by national savings.
- 5.
- First fruits of Russian loan agreement will be a steel mill and a refinery.
- 6.
- Workers contributions will be used in planned program of industrial expansion and enterprises created will be known as “peoples industries.” Workers will receive seven and one half percent interest on bonds purchased.
Audience enthusiastic and Castro frequently interrupted by applause and cheers. Present statements on private investment mark complete reversal of position of six months ago and seem to indicate adoption full state control of economic activity.
Text follows by despatch.
- Source: Department of State, Central Files, 837.00/2–2560. Confidential; Priority.↩