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14-00000 104-10172-10041 2025 RELEASE UNDER THE PRESIDENT JOHN F. KENNEDY ASSASSINATION RECORDS ACT OF 1992 FROM: R137 KOUTING AND RECORD SHEET

NOTE: In the sbsence of comments or indication of ection Poten this cover sheet will be destroyed when the document is flod

TO NOOM DATE OFFICER NO PAD RECEIVED INITIALS

1 AL6 25

2 L 3 WH/III pad 1953 chona 4 Caulit/Fl Luck 5 PP

6 7 8 9. RECORD COPY 10 01/60 22 11
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14 15 Rid/AN 18 MAR 1970 16 KID/50 17 18

19 whi 20 RID/FF

ENCLOSURE ABSTRACT FILE NUMBER

DATE MICROFILMED INDEX DOCUMENT CATE I. Quin 11959 1959

FORM USE PREVIOUS DOCUMENT NUMBER 4-68 EDITIONS HKH -02130 SECRET

14-00000 FROM: Habana OPERATIONAL AND SOURCE COVER SHEET REPORT MADE BY: Nelson L. Raynock/psa 1AE hey REPORT APPROVED BY: Woodrow C. Olien DATE OF REPORT: 21 August 1959 DISTRIBUTION: By copy to: 5 - Headquarters v/nat 1 - Embassy (Eccronic Counselor) Orally to: 1 - Legal Attaché 2 - Filos

SOURCE CRYPΡΙΟΝΥΜ: See Commonts below SOURCE, OPERATIONAL DATA, AND COMMENTS: SUBJECT: Cuban Economic Crisis HAR-2130 REFORT NO.: NUMBER PAGES: 2 NUMBER ENCLOSURES: None REFERENCES: None

Field File No. 6-0-120 ID NO.: KRYPTON: Yes No

OPERATIONAL COPMENTS 05.

Source Alberto FERNANDEZ Rechavarria, the chief of the Cuban Sugar Stabilisation Board who has the job of selling Cuba's sugar, A former active mber of the 26 of July Movement during the revolution, he is now disillusioned, and reportedly is not going to last much longer in his job. He is wealthy and his fazily have lost through CASTRO's economic reforms. He appears to know a lot about the government and also seems to have an insight into CASTRO... He regards CASTRO as some type of a UNIVAC machine, his mind automatically photostating details which he can and will use in the future. He says that CASTRO is ruthless, and that nothing can stop him in his determination to do something, 1.6., agrarian reform, and that he will sacrifice his friends, his family, his money, and his fortune to accomplish his purpose.

Again illustrating the present situation in Cuba, the source said that he cannot publicly have contacts with American officials-refusing to let the writer use his telephone and he said that a record is kept of all his calls and that his movements are periodically checked.

The advisor who warned CASTRO in paragraph one of the attached report, was the source.

As a possible reference to this report and particularly to field comment number two, see HAVA-2526. TOCS-31400, 583

The second source referred to in Field Comsant No. 2 was AMPACK-1 who obtained his information from the president of the Banco Industrial de Cuba. 08.

FORM APR 1953 51-59 PREVIOUS EDITIONS HAY EL ιια CS COPI

HXH-2130 201-251853 14-00000 FIELD INFORMATION REPORT EVALUATION OF SOURCE A. Car sietely relighte 1. Usually rea sources of doubtral bonesty or loyalty, regardless of their competence), tested sources, PPPRAISAL CONTENT C. Famyable ( Hot reliabl 'Arpied to el canin toisie Asphed to untested or la mullitentig 2. Probably true. 1. Passe 1. Confirmed by other independent ant reliable sources felse 6. Cannot be judged. Documentary. Based on original document. 4. Doubtful Smoussy COUNTRY Cuba SUBJECT CCuban Economic Crisis C-O-N-F-I-D-E-N-T-I-A-L REPORT NO. ΗΚΗ-2130 DATE OF REPORT 21 August 1959 NO. OF PAGES 2. REFERENCES None

DATE OF INFO. PLACE & July-August 1959 DATE ACQ. Cuba, Fabana (20 August 1959) SOURCE EVALUATIONS ARE DEFINITIVE, APPRAISAL OF CONTENT IS TENTATIVE. NOTE FOREGOING EXPLANATION. SOURCE Cuban Coverment official (F). Appraisal of Contents 3 1. Contrary to the reports which are issued by the Cuban Government, the financial status of the Cuban economy is rapidly deteriorating and beconing a serious problem. During July 1959 an advisor to Prime Minister Fidel CASTRO Rua) warned him to proceed more alowly with the agrarian reform, because the Cuban treasury was running short of funds. It was pointed out that 57 sugar mills were barkrupt and had not paid the plantation owners for the 1959 sugar crop. CASTRO was told that if the reckless confiscation of agricultural properties continued, the Cuban Goverment would become obligated to assume even more debts in order to alleviate the hunger of farm workers.1 2. Another drain va the economy is government subsidies. For example, the danco de Desarrollo Economico y Social (BANDES, Social and Economic Development Bank) controls about U. S. $400 million in properties and investments such as the Compañia Cubana de Aviacion (Cuban Airline Company). The companies have been caught in the present contraction of capital and cannot survive without goverment subsidies. The subsidies paid by BAIDES amount to U. S. $8 million a month, and this is only one exemple of the many payments which are draining the Cuban treasury.2 Field Comments. 1. From the reports which have been received it appears that there is growing unemployment of farm workers. This is the "dead season"- the period between sugar cene harvests--but it is reported that most plantation owners and ranchers are fearful of confiscation of their properties for the agrarian-reform program/ and consequently are doing very little in the way of maintenance work. The latter provided at least a marginal field of employment, and this is nov denied to the agricultural workers. However, In spite of this warning, the agrarian reform program has not been alowed. In fact, it seems to have been intensified. : DISTRIBUTION C-O-N-F-I-D-E-N-T-I-A-L 1 221-25183. 14-00000 : C-O-N-F-T-D-5 -2- -T-X-A-L

1. The source thought that nothing could stop CASTRO in his determination to proceed with the agrarian reform program as fast as possible. Since the biggest obstacle to carrying out this program is the lack of money the source was of the opinion that CASTRO would do anything to obtain this money and might even confiscate bank accounts and moneys and nego- tiable instruments held in safety deposit boxes. Carrying this one step furthar, the yource thought such confiscatory tactics could only. be a temporary saving device and that eventually it would be necessary for CASTI to obtain a large loan from another country. He speculated that this veald mean either the United States or the Soviet Union, and feared that if it were the lattery it would mean the end of friendly relations with the United States. In respect to CASTRO's possible need for a loan, another, fairly reliable, source reported on 18 August 1959 that Casa) was trying to obtain a 30,000,000-peso loan from locat banks. Cuban עכל NEY SI C-O-N-F-I-D-E-N-T-I-A-L

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