LETTER OF TRANSMITTAL

OCTOBER 31, 1975.

THOMAS E. MORGAN,

Chairman, Committee on International Relations,

House of Representatives, Washington, D.C.

DEAR MR. CHAIRMAN: Transmitted herewith is a report on the factfinding mission to Cuba which I undertook on behalf of the Subcommittee on International Economic Policy from August 30 to September 3.

The principal objective of this visit was to examine, at first-hand, the extent of the economic progress made by Cuba since the 1959 revolution and the current status of the Cuban economy; the impact which the United States trade embargo has had both politically and economically on the government of Prime Minister Fidel Castro; the relationship between Cuba and the world economy; and the possibility of a resumption of trade relations between the United States and Cuba. In view of the determination of the Organization of American States, meeting in San José, Costa Rica in late July, to permit its members to decide for themselves the nature of their relations with Cuba, and the U.S. Government's subsequent announcement permitting American subsidiaries in third countries to trade with Cuba, my study mission was most timely.

I am hopeful that this report will be useful to our colleagues on the Committee on International Relations and in the Congress in general as we consider the future of American relations with Cuba in the months ahead. I trust it will also add to a better understanding of the present direction of the Castro regime and of those factors influencing policymaking by the Cuban Government.

Sincerely,

UNITED STATES RELATIONS WITH CUBA

INTRODUCTION

My 5-day factfinding mission to Cuba, from August 30 to September 3, was taken in order to examine at first hand the impact which the U.S. embargo has had on the political durability and economic viability of the Castro regime. I also sought to explore the present attitude in Havana toward the possibility of a resumption of economic and diplomatic relations between the United States and Cuba. My visit was well timed as it followed by just a little over a month the OAS' July 29 decision to permit each member state to determine for itself the nature of its economic and diplomatic relations with Cuba and by 9 days our own Government's announcement that it would permit U.S. subsidiaries in third countries to trade with Cuba. Both of these developments were well received in Cuba and the latter appeared to be interpreted by Cuban officials as an indication that the United States was seeking to move along the road toward the reestablishment of relations between our two countries.

I was accompanied on my trip by my senior legislative assistant, Stuart J. Brahs; Mark Liff of the New York Daily News; and Paul Guilden, a mechanical engineer and the president of Guilden Development Corp., Inc. During our stay in Cuba we were escorted by officials of the Cuban Ministry of Foreign Affairs, who did their utmost to make our visit enjoyable, informative, and productive and who were most helpful in making last-minute changes in our schedule. Valuable assistance was also provided by M. Blaise Schenk, Chargé d'Affairés of the Swiss Embassy in Havana, who represents American interests in Cuba. Although we were disappointed in not having had the opportunity to meet with Prime Minister Castro, useful conversations were held with officials of the Ministry of Health, INRA (the National Agrarian Reform Institute), the Ministry of Education, the Ministry of Foreign Trade, and the Cuban Chamber of Commerce. We also had a very interesting session with a group of students from the University of Havana and had informative tours of the Alamar housing project in Havana's suburbs and the Campamento de Pioneros "José Marti" in Tarara.

I believe that the information I secured during my visit to Cuba will be most helpful to both our committee and the Congress when it considers the question of our future relations with this island nation in the months ahead.

BACKGROUND

On January 1, 1959, rebel forces, under the leadership of Fidel Castro Ruz, overthrew the regime of Cuban dictator Fulgencio Batista and took possession of the island's Government. From this point on the Cuban Government gradually drifted into the camp of the Soviet bloc. Shortly thereafter it began the confiscation of foreign businesses (1)