CASTRO SEIZES REFINERIES

Press, Volume XCIX, Issue 29247, 4 July 1960, Page 13

CASTRO SEIZES REFINERIES

U.S., Britain Angry; Soviet Oil Due

(N.Z. Press Association—CopvripMj (Rec. 10 pjn.) HAVANA, July 2. A Soviet tanker is due in Havana today with 10,000 tons of crude oil for the American and British refineries which have been seized by Cuba while Britain and the United States consider what steps to take against the Castro regime. In London, a Foreign Office spokesman said the British Government was “seriously concerned” and took a grave view of Cuba’s take-over of the Shell refinery and was actively considering what steps should be taken. In Washington, Reuters reported that United States anger was brought close to boiling point over the seizures of the Esso and Texaco refineries and economic retaliation in the form of a cut in Cuban sugar imports seemed certain under legislation before Congress.

This legislation empowers President Eisenhower to cut Cuban sugar quotas in the national interest. Further legislation on the sugar quotas is expected when Congress resumes its post-cop-vention sittings in August.

Reuters said that official Washington was particularly concerned at what officials described as Cuba’s “barefaced confiscation policy,” and the opinion that acceleration of that policy was moving Cuba closer to the Soviet orbit.

Observers said the United States was facing a dilemma in its policy towards Cuba. The problem was how it could t prevent property seizures without adequate compensation, and act against growing Soviet influence in Cuba without being accused of using gunboat diplomacy against a small Latin-American neighbour. There were signs the United States was trying to resolve this problem by looking to the Organisation of American States to place curbs on the Castro Government. The O.A.S. has power to take drastic steps, such as economic sanctions and diplomatic isolation. Dr. Castro’s Government was forced to shut , down the seized Esso refinery Jn Havana yesterday because of a lack of crude oil, but insisted on its ability to maintain adequate oil supplies for the country.

The Petroleum Institute said that operations were normal at the Texaco and Shell refineries and that the suspension at the third seized plant, the Esso installation. was mainly to allow completion of a Previously-Scheduled annual cleari-up. Port officials said the Soviet tanker, Chernovci, was due in Havana today with 10.900 tons of crude oil Reason For Take-Over The Texaco, Shell and Esso refineries had virtually exhausted their normal supplies Of Venezuelan crude oil when they were taken over by the Castro Government for refusing to refine Soviet crude oil obtained in a CubaSoviet sugar-for-oil deal. All equipment at the seized re-

fineries was being repainted yesterday and the Cuban press featured big advertisements for Soviet petrol which, it was claimed, afforded “special mileage.” American, British and Dutch oil officials, who have been leaving Cuba since the take-over, were confident yesterday that “generally excellent” Cuban technicians would be able to maintain the refineries. But outside Cuba, the Government’s action is having its effect. The newspaper “El Mundo” reported that a Cuban Airlines flight to Madrid was cancelled after authorities learned that “Esso had refused to supply the necessary fuel at Lisbon and Bermuda.” Major Ernesto “Che” Guevara, Dr. Castro’s economic chief, whose refusal to release dollars to pay the Western firms for crude imports from Venezuela was a factor in the take-over, predicted that Moscow would meet all Cuban oil needs. American Associated Press reported an active propaganda move to throw the blame for Venezuela’s loss of the Cuban market on the United States and Britain. Major Guevara told a radio audience Cuba had to seek oil in the Soviet Union because the two Western nations pressured Venezuela not to sell its crude oil to Cuba. So far, the Castro Government has seized about half of the 700 million dollars invested in United States properties—mainly cattle ranches,, sugar plantations, and oil refineries—in Cuba. Britain May Protest Some diplomatic observers in London think one of the British moves may be to make a protest to the Cuban Government against the take over of the Shell oil refinery. Shell, whose plant in Cuba is valued about £9,420,000, announced on June 30 that it was not sending any further crude oil to its Havana refinery. The British Foreign Office spokesman said yesterday—before the Havana announcement that the Cuban Government would run the refinery—that there had been no diplomatic exchanges with Cuba about the future of the refinery. There was no 'comment on the situation from the Shell Oil Company in London.