INTELLIGENCE HANDBOOK CUBA: FOREIGN TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP86T00608R000500110010-5
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 23
• Document Creation Date: December 15, 2016
• Document Release Date: August 18, 2003
• Sequence Number: 10
• Publication Date: July 1, 1975
• Content Type: REPORT

 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110010-5
Intelligence Handbook
Cuba: Foreign Trade
A (ER) 75.69
Auly 1975
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This publication is prepared for the use of U.S. Government
officials. The format, coverage, and contents of the publi-
cation are designed to meet the specific requirements of
governmental users. All inquiries concerning this document
from non-U.S. Covernment users aa;e to be addressed to:
Document Expediting (DOCEX) Project
Exchange and Cift Division
Library of Congress
Washington, D.C. 20540
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Cuba: Foreign Trade
July 1975
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This handbook on Cuba's international trade was prepared as a research aid.
It contains (a) a short discussion of trends in Cuban trade since the Castro takeover
in 1959, with emphasis on developments in 1974; (b) statistics on the value,
direction, and composition of trade (see Tables 1-10); economic assistance received
from the USSR (see Table 11); and recent loan extensions by non-Communist
countries (see Table 12); and (c) background material on the economy and on
Cuban trading enterprises (see T2b1c3 13-14).
The trade data in this handbook through 1972 are based mainly on official
Cuban data. Statistics for 1973-74 are based largely on (a) data supplied by Cuba
to the International Sugar Organization and (b) estimates derived from data
published by Cuba's Communist and non-Communist trading partners. The estimates
of Soviet balance-of-payments and developmental assistance reflect (a) drawings
to cover Cuban trade deficits with the USSR, (b) estimated accrual of Cuban
liabilities for interest on the outstanding debt to the USSR, and (c) other invisibles
such as a portion of the wages of Soviet technicians in Cuba and other small
movements of short-term Soviet capital to Cuba.
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CUBA: FOREIGN TRADE
Trade Trends G?-efore 1974
1. CW1;n is the world's largest sugar exporter and has long been dependent
on sugar for most of its export earnings (see Figure 1). Despite spasmodic efforts
CUBA: Trade Trends
M114 M ON US $
3,58
Figure 1
by the Castro government to diversify the economy, sugar sales consistently made
up about three-quarters of total export earnings from 1959 to 1973. As a result
of both low world sugar prices and a failure to achieve sustained increases in sugar
production, Cuban export earnings remained largely stagnant until 1973. Rising
Soviet and world sugar prices ena!,lcd Cud-.;n receipts to jump sharpy in that year.
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2. About $4.4 billion in Soviet development and balance-of-payments
assistance since the Castro takeover in 1959 has permitted the Cuban economy
to invest and consume beyond itu means. Cuba has recorded consistently large
trade deficits throughout the Castro regin: , averaging about $255 million annually.
3. Cuban imports t'.re dominated by capital goods, industrial raw materials,
and petroleum, mimicking the industrial orientation of its Communist tutors.
Foodstuff - chiefly wheat, flour, and rice - made up about 20% of total imports.
Imports accounted for about 35% of the country's food supply. Communist
countries, mainly the USSR, provided about three-quarters of total Cuban imports.
Western Europe supplied most of the remainder.
Soa&ing Exports in 1974
4. Cuba's exports rose dramatically in 1974 on wings of unprecedented sugar
prices, permitting Havana to post its first trade surplus since the Castro takeover
(see Figure 2). Export earnings soared to an estimated $2.7 billion, double the
1973 level, as increased sugar production was paired with record sugar prices.
Bolstered by increased export earnings which encouraged a large inflow of trade
credits from its non-Communist trading partners, Cuban imports rose by 44%% to
$2.45 billion.
5. Sugar dominated the composition of commodity exports more than ever
in 1974, accounting for about 90%% of the total. An 8%, increase in raw sugar
output to 5.8 million metric tons and record world and Communist market sugar
prices boosted earnings from sugar about 125/x, to nearly $2.5 billion. Exports
of shellfish, which have been rising steadily, grew another 19% in 1974 as a result
of a larger catch and rising world prices. On the other hand, generally stagnant
nickel, tobacco, and citrus production helped to keep sales of these items at
approximately 1973 levels.
6. Cuba has not yet published import data for 1974 (or 1973). The relative
importance of the major categories of goods probably did not change significantly
from previous years. The high priority given investment suggests continued high
levels of machinery and transportation equipment imports. thereby precluding any
major shift toward nonfood consumer items. Failure to significantly expand food
production other than sugar or to discover domestic petroleum supplies suggests
continued large purchases of these commodities as well. Because of large increases
in the prices of goods imported from the developed Western world, the real gain
in imports obviously was substantially less than the rise in value.
a
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CUBA: Trade Balances
Expanding Relations with the West
Figure 2
7. High world sugar prices and a stronger domestic economy enabled I l: vana
in 1974 to expand its commercial ties with Western countries, which in turn have
been eager to exploit the Cuban market. Hard currency earnings nearly tripled.
to about SI.3 billion, as a result of an I8'h increase in the volume of sugar exports
and a near tripling of the average price received from world ma!kct sugar sales,
to about 25 cents per pound. Bolstered by increasing trade credits from these
countries. Cuban haporis from the non-Communist world doubled to about S850
million. 35% of total imports. compared with a 27' average in 11971.73.
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irban-soviet Ties Remain Strong
8. Despite growing commercial links with the West, Havana remains closely
tied to the Soviet economy. The Soviets accounted for about two-fifths of Cuba's
total trade in 1974 (see Figure 3) and continued to provide for virtually all of
CUBA: Direction of Trade
Figure 3
27
32
28
24
23
22
20
19
18
99
48
48
48
55
48
46
48
49
41
41
29
23
24
21
32
32
32
1959 1991 19112
1965
1997
1969 1971
1972
1973
1974
its petroleum needs and a major share or its imports of capital equipment and
foodstuffs. In addition, Mcr..cow furnished Havana about S275 million in
balance-of-payments and development credits, bringing the total amount of such
assistance to about S4.4 billion since 1961.
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Other
Communist
Countries
Ron-
Communist
Countries
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Prospects for 1975
9. Cuba's trade surplus will diminish and could well disappear in 1975.
Lower sugar output and declining world sugar prices will hold export earnings to
about the $2.7 billion level of 1974. Strengthened by large new Western credits,
imports on the other hand will probably increase to at least match exports.
Cuba: Foreign Trade Overview
1958
1961
1963
1965
1967
1969
1971
1972
1973'
1974'
Total exports
(f.o.b.)
742
626
545
691
705
671
860
837
1
380
2
745
Communist
countries
U
18
460
365
529
568
446
555
446
,
880
,
1,485
SSR
14
304
164
323
366
233
304
244
565
935
Eastern
Europe
Negl.
63
125
103
113
130
160
137
210
375
Far East
4
93
76
103
89
83
91
65
105
17S
Non-Communist
countries
724
166
180
162
137
225
305
391
500
1
260
Total imports
(c.i.f.)
860
707
832
866
999
1,222
1,387
1,297
700
1
,
2
450
Communist
countries
USSR
2
498
697
649
784
902
969
996
,
1,225
,
1,600
Negl.
294
461
428
582
669
731
778
950
1
175
Eastern
Europe
F
F
2
104
145
98
119
139
143
126
ISO
,
225
ar
ast
Negl.
100
91
123
83
94
95
92
125
200
Non-Communist
countries
858
709
135
217
215
320
418
301
475
850
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Cuba: Exports to Communist Countries
Million US $ (f.o.b.)
1958
1961
1963
1965
1967
1969
1971
1972 1973' 1974'
Total
18
460
365
529
568
446
555
446 880 1,485
USSR
14
304
164
323
366
233
304
244 565 935
Eastern
Europe
Negl.
63
125
103
113
130
160
137 210 375
Albania
0
0
1
1
1
Negl.
2
1 2 1
Bulgaria
0
6
9
21
24
27
31
26 65 90
Czecho-
slovakia
Ncgl.
22
38
46
41
43
44
42 45 70
East Germany
0
9
40
28
36
38
49
42 55 125
Hungary
Negl.
1
12
2
4
5
12
8 11 24
Poland
0
24
18
4
6
7
7
7 14 25
Romania
0
1
7
1
1
10
15
11 18 40
Far East
4
93
76
103
89
83
91
65 105 175
China
4
91
73
100
79
64
67
48 73 140
Mongolia
0
0
0
0
Negl.
Ncgl.
NegI.
I Negl. Negl.
North Korea
0
2
2
2
8
18
23
15 27 32
North
Vietnam
0
0
1
1
2
1
1
1 5 3
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Cuba: Exports to Non-Communist Countries
Million US $ (f.o..b
1958
1961
1963
1965
1967
1969
1971
1972
1973'
1974'
Total
724
166
180
162
137
225
305
391
500
1,260
Belgium-
Luxem-
bourg
3
Negl.
2
1
2
3
3
4
4
4
Canada
16
4
14
5
5
7
11
12
17
76
Egypt
Negi.
12
15
7
6
6
4
4
1
5
France
8
1
2
10
15
14
6
8
12
11
Italy
Negl.
1
19
7
6
11
9
15
21
24
Japan
47
27
21
21
18
67
100
149
182
440
Morocco
12
10
27
15
11
13
15
5
10
25
Nether-
lands
16
6
11
4
4
22
6
10
18
15
Spain
18
8
23
34
33
41
36
44
55
175
United
Kingdom
37
9
31
13
13
14
17
12
33
46
United
States
498
29
0
0
0
0
0
0
0
0
West
Germany
8
5
1
1
1
1
2
3
4
5
Other
61
54
14
44
23
26
96
125
143
434
7
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Cuba: Exports, by Major Commodity
Million US $ (f.o.b.)
1958
1961
1963
1965
1967
1969
1971
1972
1973'
1974'
Total
742
626
545
691
705
671
860
837
1,380
2,745
Sugar
587
540
473
591
599
503
657
616
1,110
2,470
Raw sugar
496
495
389
511
520
408
634
596
1,090
2,445
Refined sugar
61
37
70
68
65
80
Molasses
30
8
14
12
14
15
23
20
20
25
Minerals
37
36
35
50
54
92
135
125
165
165
Nickel
28
29
32
40
44
86
135
124
164
164
Other
9
7
3
10
10
6
0
1
1
1
Tobacco
49
38
22
33
30
42
32
40
42
35
Raw
37
32
15
19
11
14
14
15
13
10
Manuff c-
tures
12
6
7
14
19
28
18
25
29
25
Foodstuffs
22
4
4
5
10
28
36
52
58
70
Of which:
Fish and
shell-
fish
4
1
1
3
5
13
21
28
42
50
Fruit
2
1
1
i
1
2
3
5
12
15
Rum
1
1
Negl.
1
2
3
1
3
4
5
Other
47
8
11
12
12
6
0
4
5
5
8
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1958
1961
1963
1965
1967
1969
1971
1972
.
1973
1974'
Total
249
4,791
2,067
3,525
3,866
2,808
3,278
2,294
3
012
3
270
USSR
188
3,303
973
2,1102
2,473
1,352
1,81
1,097
,
1
661
,
1
900
Eastern
Europe
11
456
560
584
703
796
960
696
,
834
,
820
Albania
0
0
6
11
4
0
23
15
14
20
Bulgaria
0
57
56
158
195
205
211
154
213
200
Czecho.
slovakia
0
25
1.50
245
215
224
190
151
163
170
East
Germany
0
112
244
170
250
253
338
243
259
260
Hungary
11
0
U
0
17
17
59
38
52
45
Poland
0
262
104
0
22
28
30
22
55
50
Romanlu
0
0
0
0
0
69
109
73
78
75
Far East
50
:,032
534
831
690
660
737
501
517
550
China
50
1,032
501
7443
556
445
464
295
302
380
Mongolia
0
0
0
0
5
0
0
11
3
20
North Korea
0
0
20
21
83
155
197
119
136
75
North
Vietnam
0
0
13
66
46
60
76
76
76
75
1. Provisional,
2. Excluding 346,000 tons shipped to the USSR on Chinese account in repayment of a 1961 loan.
3. Including 346,000 tons shipped to the USSR.
Table 5
Cuba: Sugar Exports to Communist Countries
Thousand Metric Tons
Raw Sugar
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Table 6
Cuba: Sugar Exports to Non-Communist Countries
Thousand Metric Tons, Raw Sugar
1958
1961
1963
1965
1967
1969
1971
19772
1973
1974'
Total
5,383
1,623
1,454
1,790
1,817
1,991
2,233
1,846
1,785
2,100
Algeria
0
0
5
18
43
42
25
25
6
15
Canada
190
16
70
69
66
80
73
31
47
115
Egypt
0
75
78
125
114
69
43
21
5
N.A.
Finland
0
5
0
0
21
0
12
16
26
72
Iran
10
61
10
73
71
0
25
52
0
N.A.
Iraq
18
35
37
126
42
22
52
56
0
N.A.
Japan
556
423
161
415
542
1,018
912
909
985
1,200
Kenya
0
0
0
0
0
0
46
27
38
N.A.
Malaysia
0
0
0
0
119
105
141
88
29
60
Morocco
156
157
285
182
153
176
165
55
62
50
Singapore
0
0
0
0
0
37
38
0
14
N.A.
Spain
b9
53
103
174
159
182
82
98
104
350
Sweden
34
1
15
42
22
10
47
65
56
50
Syria
38
75
21
62
64
87
116
101
107
N.A.
United
Kingdom
487
79
174
113
70
43
51
29
122
60
United
States
3,240
0
0
0
0
0
0
0
0
0
Yugo-
slavia
2
34
11
85
65
67
72
43
12
N.A.
Other
583
609
484
306
266
53
333
230
172
128
10
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Cuba: Imports from Communist Countries
Million US
c1f;l
19SB
1961
1963
1965
1967
1969
1971
1972
191/3'
1974'
Total
2
498
697
649
784
902
969
996
1,225
1,600
USSR
Ncgl.
294
461
428
S82
669
731
778
950
1,175
Eastern Europe
2
104
145
98
119
139
143
126
150
235
Albania
0
1
1
1
1
I
1
1
I
Bulgaria
0
10
5
16
20
26
25
34
32
55
Czechoslovakia
2
29
55
36
36
28
31
33
4)
62
East Germany
0
26
36
25
50
43
63
39
50
55
Hungary
Ncgl.
9
12
8
4
3
8
8
7
13
Poland
Ncgl.
21
29
8
7
4
2
2
11
14
Romania
Negl.
8
7
4
1
34
13
9
8
25
Fur East
Ncgl.
100
91
123
83
94
95
92
125
200
China
Negl.
99
87
120
73
80
79
76
100
170
Mongolia
0
Negl.
Ncgl.
0
IVcgl.
Neg).
Ncgl.
Negl.
Ncgl.
Negi.
North Korea
0
1
3
3
10
14
15
15
23
28
North Vietnam
0
n
I
Meg).
Ncgl.
Ncgl.
1
1
2
2
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Cuba: Imports from Non-Communist Counirks
W111krn 0 $ (e, L
1958
1961
1963
1965
1967
1969
1971
1972
19731
19741
Total
959
209
135
217
215
320
418
301
475
1450
Belgium-Luxembourg
14
4
2
6
5
3
5
7
14
51)
Canada
20
39
II
IS
9
14
27
10
41
Mi
Egypt
NcN.
I I
I I
11
8
5
S
2
6
It
France
8
8
6
19
41
47
63
20
32
1l0
Italy
11
4
1
5
31
36
55
13
24
45
Japan
S
12
S
4
9
10
60
49
121
225
Mexico
6
6
2
3
6
Nell.
Neg1.
14
8
1.1
Morocco
Nell.
2
14
5
S
9
4
2
2
'l
Nethcrlandt.
8
12
8
6
14
6
16
7
12
3$
Spain
14
6
14
47
29
48
33
17
42
61
U'nti d Kingdom
24
17
11
50
29
66
61
47
47
60
United States
581
26
Ncgl.'
0
0
0
0
0
0
0
Venezuela
72
Nell,
0
0
0
0
0
0
0
Nell.
West Germany
33
18
12
S
12
30
17
23
36
105
Other
62
44
38
41
17
46
72
78
90
81
1. Prrvtskn'.I.
i. Excluding US ransom p.ymeni in kind velued.t 135 mplkon.
It
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Cuba! tmpiw , by 14
t Cmm~tnr by C.trMI
'r?rt.i
1,103
1,122
1r1 1 cr0
t.aft4ine
Ttanapnttatkm
equipment'
123
90
199
120
r,0
10
R6
.
.
1.1 ` A A
I.?I.,rmnti*t
1.4
NA.
2
NA
Ir.A..
at,
7
I 111 t'
Au hmxrhik,
ttvcki
160*
193
1
N,A
'
I.4t7
N A.
N A.
747
2.017
1.(1 3 1.474' 2.2'"
.
i.A.
114
2.91*
2. 2
1.712
3
271
?
2u : X112' 2
t:t'
11u,r.
76
NA
712
430
11t
62
.
~"4tt
.
.
I'J 7$' 7
ttach,tr,
2.404
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 Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110010-5
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Approved For Release 2003/09/29 : CIA-RDP86T00608R000500110010-5