ANGRY CONGRESSMEN ATTACK CUBA

Press, Volume XCIX, Issue 29246, 2 July 1960, Page 13

ANGRY CONGRESSMEN ATTACK CUBA

President Given Power To Cut Sugar Quota

(N.Z. Prut Astociation—Copyright) WASHINGTON, June 30. The House of Representatives, heeding Administration pleas for fast action, tonight voted President Eisenhower authority to slash the sugar imports from Cuba, sending to the Senate a bill extending the Sugar Act for one year. The House vote was taken after -the angry .denunciation of Cuba’s Prime Minister (Dr. Fidel Castro), including the demand by one member that if necessary the United States occupy the Caribbean island.

Mr Mendel Bivers (Democrat, South Carolina) also called for immediate retaliation for Cuban seizures of American holdings. The Administration sought authority to establish the Cuban sugar quota for the balance of 1960 and for 1961 at such levels as the President found to be in the national interest. At- present the United States is buying about 3,500,000 tons of sugar annually from Cuba, one of the world’s major producers. This is more than half the Cuban crop. To protect domestic producers, the United States is paying Cuba a premium of about two cents above world market price. Oil companies began cutting off their supply of oil to Cuba today at the start of a huge squeeze which could make expropriation of foreign property rebound against the Cuban economy. Cuba seized, the 26 million dollar Texaco oil refinery yesterday and the seizure of all other American holdings in Cuba, including the 300,000,000-dollar Cuban Electric Company and the 100,000,000dollar Cuban Telephone Company, was imminent. Oil circles said tonight that the American Standard Oil Company (Esso) had decided to join the British-Dutch Shell Company in ceasing importation of oil into Cuba for refining. well-informed sources quoted by Reuter in New York reported that this was likely to result in a shutting down of operations by the British-Dutch Shell refinery at least

would seriously disrupt international arrangements between Cuban and Venezuelan Shell, whose activities were closely interdependent . United Press Internationale in Havana reported that the Government owed a reported 67,000,000 dollars for oil brought in during the last-year, ■ The refusal to continue refining by the two companies was expected to force the Government’s quick intervention and probably provoke a .major oil crisis, the news agency said. Cuba's economy—its sugar mills, factories, and transportation —depends on oil to keep going. A critical situation could develop immediately.

Oil experts said the Cubans could operate all the foreign refineries, particularly if thpy. bad help'from Eastern Europe. But it was believed unlikely that Russia could , rush in sufficient technicians to keep things going. The Esso refinery handles 35,000 barrels a day and Shell 28,500. The Santiago de Cuba Texaco plant seized yesterday handles 20,000. - Reports reaching Havana said the Texaco refinery began refining Russian petroleum late today. The reports said 47 Russian technicians were working there with Cubans. Should all Western supplies end, Cuba would be forced to rely entirely on Soviet oil obtained under a sugar barter agreement. This would be a fraction of Cuba’s needs and oU sources in Havana said Cuba did hot ■ have enough tankers at its disposal to- handle the country’s needs.

A statement by Canadian Shell. Ltd., the parent company of the Cuban Shell organisation, emphasised that the decision to stop the crude oil imports was based on “purely commercial grounds.” The Canadian statement added, on the question of the three refineries in Cuba refusing to process Soviet crude oil, that acceptance of oil from other sources as far as Shell was concerned

Cuba has been receiving 80.000 barrels of oil a day from Standard .Oil and Shell subsidiaries in Venezuela for its needs. It recently received enough Soviet oil to keep the Texaco refinery going, with more promised.