U.S. PROPERTY IN CUBA

Press, Volume XCIX, Issue 29250, 7 July 1960, Page 13

U.S. PROPERTY IN CUBA

Total Expropriation Authorised (N.Z Press Association—Copyright) (Rec. 11 p.m.) HAVANA, July 6. The Cuban Cabinet early today authorised the expropriation of all American-owned property in Cuba. An announcement after midnight specifically placed in the hands of President Osvaldo Dorticos and the Prime Minister, Dr. Fidel Castro, power to take over what remains of the nearly 1000 milliondollar investment which the United States and its citizens had in Cuba when Dr. Castro overthrew the dictator, Fulgencio Batista, 19 months ago. The expropriations were authorised “when deemed necessary in the national interest.”

The announcement added that the measure was adopted in view of “the constantly aggressive attitude” of the United States Government Cited as a specific instance of United States “aggression” was the authority given to President Eisenhower to reduce Cuba’s sugar sales in the United States.

The American Associated Press described the decree as “a formality prescribing a new legal procedure for seizures that in reality began months ago.” Except for agricultural lands — the expropriation of which is already provided for by the Agrarian Reform Law—the Castro regime up to now has been taking over American businesses through a process of “intervention," installing Governmentpicked staff to operate the businesses and removing American staff.

Dr. Castro made clear that if the United States made any drastic cuts in its purchases of Cuban sugar, Cuba would not pay for the American property it seized. The decree said Cuba would pay with money it earned from sugar sold to the United States in excess of 3,000.000 tons a year and at a price of 5? cents a lb or above. Cuba’s quota this year is 3.100,000 tons, and President Eisenhower is expected to cut that by perhaps 700 000 tons United Press International reported that the Cabinet decreed an amendment to article 232 of Cuba’s Constitution, whidh gov-1 erns expropriations, making it I

: possible for the revolutionary Government to pay for seized property in bonds rather than cash. The decree said the bonds would have at least a 30-year term at two- per cent, interest. i The law stipulated that there ' would be no appeal from the Executive Appropriations Committee. A Cabinet spokesman said > this was the only subject the Cabinet dealt with in its session. This week Cuba has seen a number of its diplomatic representatives in other countries turn against it There was a strong possibility ! Dr. Castro would decline to • anpoint a new Ambassador to Washington to replace Mr Jose > Miro Cardona. the respected revolutionary figure who defected yesterday Diplomatic sources see any de- > cision to keep the post vacant as a logical last step in the CubanAmerican cold war. Mr Miro Cardona, who had yet to take up his assignment to Washington, took refuge in the Argentine Embassy in Havana citing “ideological” conflicts with Dr Castro. His sudden resignation was be- : lieved to have contributed to a shake-up in the Cuban Foreign Sendee which included the announced dismissal yesterday of the Ambassadors to El Salvador, to Italy and to European headquarters of the United Nations; • Most of the defectors have ac- ! u=ed the Castro Government of i falling under the control of inter- : I national communism. Such a

charge was made last week by Mr Sergio, Rojas, Ambassador to Britain until he took. refuge in the Argentine Embassy in Havana. He was there to greet Mr Miro Cardona yesterday. In the background of the present crisis was Cuba’s steadily growing economic flirtation with the Soviet Union, China and other Communist countries. A Cuban delegation headed by the chief of the agrarian reform programme, Mr Nunez'Jimenez, was flying home today after a five-day visit to East Germany. The Deputy Foreign Minister of Czechoslovakia is visiting Cuba. Russia has promised to supply Cuba with its crude oil needs and technical help as a result of the refinery seizures. The United States protest on the seizures, delivered by its Ambassador. Mr Philip Bonsai, accused Dr. Castro of “relentless economic aggression*’ calculated to destroy Cuba’s . trade relations with the free world. The British protest was similarly worded.