INTELLIGENCE HANDBOOK CUBA: FOREIGN TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79-00928A000200070002-5
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 20
• Document Creation Date: December 12, 2016
• Document Release Date: May 7, 2002
• Sequence Number: 2
• Publication Date: July 1, 1975
• Content Type: REPORT

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Intelligence Handbook
Cuba: Foreign Trade
A (ER) 75-69
July 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. Government users are to be addressed to:
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Library of Congress
Washington, D.C. 20540
pprove or e ease 9-109 002000 0002-5
Approved For Release 2002/06/04: CIA-RDP79-00928A000200070002-5
Cuba: Foreign Trade
July 1975
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Foreword
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 Tables 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 Before 1974
1. Cuba 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
MILLION US $
3,500
Figure 1
CUBA: Trade Trends
0
1958 1961 1963 1966 1967 1969 1971 72 73 1974
566895 7-75
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 enabled Cuban receipts to jump sharply in that year.
1
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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 its means. Cuba has recorded consistently large
trade deficits throughout the Castro regime, averaging about $255 million annually.
3. Cuban imports are 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.
Soaring 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%, 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.
2
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MILLION US $
500
CommUnist Cou
Expanding Relations with the West
7. High world sugar prices and a stronger domestic economy enabled Havana
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 $1.3 billion, as a result of an 18% increase in the volume of sugar exports
and a near tripling of the average price received from world market sugar sales,
to about 25 cents per pound. Bolstered by increasing trade credits from these
countries, Cuban imports from the non-Communist world doubled to about $850
million, 35% of total imports, compared with a 27% average in 1971-73.
3
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Cuban-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
100
99
1
27
45
28
CUBA: Direction of Trade
32
45
23
28
48
24
PERCENT
24
55
21
23
48
29
22
46
32
20
32
19
49
32
Figure 3
Other
Communist
18 Countries
41
USSR
Non-
Communist
Countries
1958 1961 1963 1965 1967 1969 1971 1972 1973 1974
566697 7-75
its petroleum needs and a major share of its imports of capital equipment and
foodstuffs. In addition, Moscow furnished Havana about $275 million in
balance-of-payments and development credits, bringing the total amount of such
assistance to about $4.4 billion since 1961.
4
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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.
Table 1
Cuba: Foreign Trade Overview
Million US $
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
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
Far East
4
93
76
103
89
83
91
65
105
175
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
1,700
2,450
Communist
countries
2
498
697
649
784
902
969
996
1,225
1,600
USSR
Negl.
294
461
428
582
669
731
778
950
1,175
Eastern
Europe
2
104
145
98
119
139
143
126
150
225
Far East
Negl.
100
91
123
83
94
95
92
125
200
Non-Communist
countries
858
209
135
217
215
320
418
301
475
850
1. Provisional.
5
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Table 4
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
Manufac-
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
1
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
1. Provisional.
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Table 5
Cuba: Sugar Exports to Communist Countries
Thousand Metric Tons, Raw Sugar
1958
1961
1963
1965
1967
1969
1971
1972
1973
19741
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
1,581
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
2111
154
213
200
Czecho-
slovakia
0
25
150
245
215
224
190
151
163
170
East
Germany
0
112
244
170
250
253
338
243
259
260
Hungary
11
0
0
0
17
17
59
38
52
45
Poland
0
262
104
0
22
28
30
22
55
50
Romania
0
0
0
0
0
69
109
73
78
75
Far East
50
1,032
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.
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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 1972 1973 19741
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
Morocco
156
157
285
182
153
176
165
55
62
50
Singapore
0
0
0
0
0
37
38
0
14
N.A.
Spain
69
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
1. Provisional.
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Table 7
Cuba: Imports from Communist Countries
Million US $ (c.i.f.)
1958
1961
1963
1965
1967
1969
1971
1972
1973'
1974'
Total
2
498
697
649
784
902
969
996
1,225
1,600
USSR
Negl.
294
461
428
582
669
731
778
950
1,175
Eastern Europe
2
104
145
98
119
139
143
126
150
225
Albania
0
1
1
1
1
1
1
1
1
1
Bulgaria
0
10
5
16
20
26
25
34
32
55
Czechoslovakia
2
29
55
36
36
28
31
33
41
62
East Germany
0
26
36
25
50
43
63
39
50
55
Hungary
Negl.
9
12
8
4
3
8
8
7
13
Poland
Negl.
21
29
8
7
4
2
2
11
14
Romania
Negl.
8
7
4
1
34
13
9
8
25
Far East
Negl.
100
91
123
83
94
95
92
125
200
China
Negl.
99
87
120
73
80
79
76
100
170
Mongolia
0
Negl.
Negl.
0
Negl.
Negl.
Negl.
Negl.
Negl.
Negl.
North Korea
0
1
3
3
10
14
15
15
23
28
North Vietnam
0
0
1
Negl.
Negl.
Negl.
1
1
2
2
1. Provisional.
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Table 8
Cuba: Imports from Non-Communist Countries
Million US $ (c.i.f.)
1958
1961
1963
1965
1967
1969
1971
1972
1973'
1974'
Total
858
209
135
217
215
320
418
301
475
850
Belgium-Luxembourg
14
4
2
6
5
3
5
7
14
50
Canada
20
39
11
15
9
14
27
20
41
85
Egypt
Negl.
11
11
11
8
5
5
2
6
4
France
8
8
6
19
41
47
63
20
32
80
Italy
11
4
1
5
31
36
55
13
24
45
Japan
5
12
5
4
9
10
60
49
121
225
Mexico
6
6
2
3
6
Negl.
Negl.
14
8
13
Morocco
Negl.
2
14
5
5
9
4
2
2
7
Netherlands
8
12
8
6
14
6
16
7
12
35
Spain
14
6
14
47
29
48
33
17
42
60
United Kingdom
24
17
11
50
29
66
61
47
47
60
United States
581
26
Neg1.2
0
0
0
0
0
0
0
Venezuela
72
Negl.
0
0
0
0
0
0
0
Negl.
West Germany
33
18
12
5
12
30
17
25
36
105
Other
62
44
38
41
17
46
72
78
90
81
1. Provisional.
2. Excluding US ransom payment in kind valued at $35 million.
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Table 9
Cuba: Imports, by Major Commodity Category'
Million US $ (c.i.f.)
1968
1969
1970
1971
1972
Total
1,103
1,222
1,311
1,387
1,297
Foodstuffs
211
216
242
286
294
Raw materials and intermediate goods
284
270
290
295
296
Fuel
93
106
114
127
163
Of which:
Petroleum
91
103
110
123
157
Machinery and transportation equipment
292
373
368
390
245
Other (not specified)
223
257
297
289
299
1. A consistent series for 1958-72 is not available.
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Table 10
Cuba: Imports of Selected Commodities
Thousand Metric Tons'
1958
1961
1963
1965
1967
1969
1971
1972
19732
19742
Foodstuffs
Rice (milled)
194
N.A.
190
282
157
186
280
256
250
275
Legumes
73
N.A.
64
62
76
81
83
90
90
100
Wheat flour
86
1003
248
231
285
290
346
308
336
312
Lard
82
N.A.
48
39
41
23
26
20
40
40
Canned milk
7
N.A.
17
22
19
17
19
19
20
15
Raw materials and
intermediate goods
Wheat
139
1923
278
265
300
343
401
476
420
397
Raw cotton
9
153
8
23
17
20
19
19
19
22
Crude vegetable oil
6
N.A.
36
47
51
56
66
54
48
65
Woodpulp
30
N.A.
52
18
35
30
39
31
N.A.
N.A.
Rubber (natural, re-
generated, synthetic)
6
N.A.
6
6
9
9
7
6
N.A.
N.A.
Sulfur
11
643
46
68
105
124
179
123
1443
1473
Caustic soda
16
143
23
23
29
36
33
19
243
293
Pig iron
0.3
453
25
32
45
81
79
96
108
100
Tin plate
22
N.A.
30
23
43
44
40
39
313
273
Coke
41
103
28
37
46
52
75
88
54
51
Fertilizer
181
N.A.
331
432
1,250
862
614
652
N.A.
N.A.
Cotton cloth4
N.A.
N.A.
N.A.
81
50
63
57
53
50
45
Fuel
Crude petroleum
3,500
2,980
3,709
3,483
3,713
4,156
4,757
4,749
5,250
5,500
Fuel oil
260
835
159
791
975
995
1,409
1,315
1,400
1,500
Gasoline
125
90
199
120
60
10
86
13
N.A.
N.A.
Transportation
equipments
Locomotives
35
N.A.
2
N.A.
N.A.
66
7
1
113
53
Automobiles
16,064
N.A.
1,457
N.A.
N.A.
747
2,037
1,085
1,5743
2,2353
Trucks
3,195
N.A.
3,354
2,928
2,942
1,712
5,274
3,264
2,8323
2,5253
Buses
76
N.A.
712
430
315
62
998
191
753
723
Tractors
2,408
N.A.
3,443
6,574
6,249
8,828
7,042
3,024
4,0023
3,6863
1. Unless otherwise indicated.
2. Provisional.
3. Imports from the USSR only.
4. Million square meters.
5. Units.
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Table 11
Cuba: Economic Assistance from the USSR
Million US $
1961-67
1968
1969
1970
1971
1972
19731
19741
Balance-of-payments aid
1,393
432
494
231
509
631
418
273
Trade deficit with the USSR
1,180
382
436
162
427
534
385
240
Interest charges
59
28
34
45
57
69
02
02
Other invisibles
154
22
24
24
25
28
33
33
Cumulative aid
1,393
1,825
2,319
2,550
3,059
3,690
4,108
4,3813
Sugar subsidy payments4
632
150
86
150
56
-22
95
-325
Total cumulative aid
2,025
2,607
3,187
3,568
4,133
4,742
5,255
5,203
1. Provisional.
2. A Cuban-Soviet agreement of December 1972 exempted Cuban debt from further interest charges.
3. Consisting of (a) an estimated $3.9 billion in direct balance-of-payments assistance, (b) an estimated $450 million in
development aid, and (c) an estimated $21 million grant in 1964 following Hurricane Flora. Since Cuba thus far has made
no repayment, this sum represents Cuba's debt to the USSR. In 1972 the USSR agreed to postpone the beginning of
repayments until 1986.
4. The annual value of sugar subsidy payments is estimated as the difference between the value of sugar exports to the
USSR and the value of these exports computed at the average price for Cuban sugar sold on the world market. It is
considered a grant by the USSR and is not subject to repayment.
15
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Table 12
Cuba: Recent Extensions of Major Non-Communist Trade Credits
Donor Country
Value
(Million US $)
Date
Authorized
Terms
Argentina
1,200
Aug 1973
Medium-term credits for a purchase of
Argentine industrial and transportation
equipment, to be repaid in 8 years from
time of delivery.
Spain
900
Dec 1974
Trade credits for the purchase of Spanish
ships and whole plants.
United Kingdom
580
May 1975
Medium-term credits at less than 7-1/2%
per year for purchase of British capital
goods.
France
350
Jan 1975
Medium-term credits for the purchase of
French machinery, whole plants, and trans-
portation equipment; to be repaid in 10 years.
Canada
155
Mar 1975
$100 million credit to be repaid in 10 years
at competitive interest rates; $10 million de-
velopment loan to be repaid over 30 years at
3% interest and $3 million technical assist-
ance grant in February 1975; $24 million in
December 1974 and $18 million in April 1974
for purchases of oil tankers and rail equipment.
16
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Table 13
Cuba: Country Brief
Geography
Area 44,200 square miles
Capital Havana
Other major cities Santiago de Cuba, Camaguey, Nuevitas, Santa Clara,
Cienfuegos, Matanzas
Chief ports Havana, Mariel, Cienfuegos, Santiago de Cuba, Matanzas,
Cardenas
People
Population 9.25 million (mid-1975)
Language Spanish
Literacy About 96%
Economy
GNP growth rate 1961-73, 1.8%; 1968-73, negligible; 1974 provisional
estimate, 4%-6%
Agriculture
Major industries
Exports
Imports
Major trade partners
Main crops -- sugar, tobacco, rice, vegetables, citrus fruit
Sugar milling, electric power, petroleum refining, nickel
mining, food processing, cement
$2.7 billion f.o.b. (1974 estimate); sugar, nickel, tobacco,
shellfish
$2.4 billion c.i.f. (1974 estimate); capital equipment,
industrial raw materials, foodstuffs, petroleum
Exports -- USSR, Japan, Eastern Europe, People's
Republic of China, Canada; Imports ? USSR, Eastern
Europe, Japan, People's Republic of China
Monetary conversion rate 1 peso equals $1.21 US (nominal)
17
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Table 14
Cuba: Trading Enterprises
Ministry of Foreign Trade
Minister: Marcelo Fernandez Font
First Vice Minister: Ricardo Cabrisas Ruiz
Vice Minister for Commercial Policies with:
Capitalist Countries: Richardo Cabrisas Ruiz
Socialist Countries: Herninio Garcia Lazo
The USSR: German Amado-Blanco Fernandez
Enterprise Director
Import
ALIMPORT
AVIAIMPORT
CONSTRUIMPORT
CONSUMIMPORT
CUBACONTROL
CUBAHIDRAULICA
CUBAMETALES
CUBAPESCA
CUBATEX
EDUCUBA
FECUIMPORT
FERRIMPORT
MAPRINTER
MAQIMPORT
MEDICUBA
QUIMIMPORT
TECNOIMPORT
TRACTOIMPORT
TRANSIMPORT
U.S.I.E.
Export
CUBAZUCAR
CUBANIQUEL
CUBAEXPORT
CUBATABACO
Ricardo Espino Martinez
Eduardo Martinez Valdez
Olegario Cartelles
Jose Luis Mestre Roca
Eddy Ramos Lopez
Antonio Riambau Martinez
Dionisio Arranz Tremols
Rolando Alvarez Alvarez
Isaac Abascal CoaIla
Benito Fernandez Gachassin-Lafitte
Portirio Mederos
Carolos Rodriguez Benitez
Justo Armesto Pons
Jose de la Fuente Menendez
Orlando Romero Merida
Edgardo Machado Flores
Jose Enrique Quesada
Guido Valiente Romero
Antonio Vinagre Roca
Roberto Rodriguez Llompart
Emiliano Lezcano Viqueira
Osmani Martinez Vasquez
Tirso Luis Joanicot
Alberto Ramos Suco
18
Responsibilities
Foodstuffs, livestock
Aircraft, navigation equipment
Construction equipment
Consumer durables
Controls, supervises, and in-
spects exports and imports
Irrigation equipment
All metals, wire, fuel
Fishing equipment
Textiles, cordage, leather
Educational equipment
Railway equipment
Hardware supplies
Raw materials and intermediate
goods
Machinery and equipment
Medical equipment
Chemicals, fertilizer
Technology
Agricultural machinery
Automotive and transportation
equipment
Mining and drilling equipment
Sugar and sugarcane byproducts
Nickel ore
Foodstuffs and miscellaneous
products
Tobacco and tobacco products
Approved-For-Release 2002106104: CIA:ROP79-60928A0-0020-0070001-5"