THE CUBAN MENACE TODAY-- COMMUNISM'S BABE IN LATIN AMERICAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP65B00383R000200240017-8
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 13
• Document Creation Date: December 15, 2016
• Document Release Date: June 18, 2004
• Sequence Number: 17
• Publication Date: July 18, 1963
• Content Type: OPEN

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1963 CONGRESSIONAL RECORD - SENATE
continuous auction market, its market must
have adequate "depth," a need that is gen-
erally recognized in listing and delisting
standards. The depth of buying and selling,
according to the report, is directly affected
by the round-lot unit of trading; thus a re-
duction in the round-lot trading unit (100
shares) ? would tend to add to the flow of
buy and sell orders conttiuing the depth of
the market at any given time. Accordingly,
the study recommends a "Government-in-
dustry study of the feasibility and desir-
ability of reducing the round-lot unit for all
or some securities."
INSTITUTIONAL PARTICIPATION AND BLOCK
TRANSACTIONS
The report emphasizes the growing im-
portance of institutions relative to in-
dividuals as investors in stocks, although
pointing out that the holdings and trading
of stocks by institutions are still consider-
ably less important than those of individuals.
The report also notes the "special import-
ance" of institutions to the trading markets
resulting from their large unit holdings and
the concentration of decision making power
in relatively few investor units.
Institutional transactions showed concen-
trations inrissues listed on the NYSE. Trans-
actions executed on the regional exchanges
involve for the most part NYSE issues and
most were by the open-end investment com-
panies. While the NYSE is the most im-
portant market channel for institutional
transactions in listed stocks, many institu-
tions indicated that their use of the over-
the-counter markets for listed stocks has
been increasing in recent years.
The report also states that while the in-
vestment companies (mutual funds) have
noticeably higher stock turnover rates than
other institutions, the turnover of the in-
stitutional portfolios as a whole was lower
than the NYSE market. The institutions
lower turnover rates "raises questions con-
cerning the consequences of possible further
increase In institutionalization of the mar-
kets for stocks," which may Include the pos-
sible further "thinning of the markets in
particular issues."
Most institutions were found to have con-
centrated their commission business among
relatively few brokers: no more than 10
firms tended to account for more than 20
percent of the business of each institution.
NYSE member firms received more than two-
thirds of the total institutional commis-
sion business for the period studied.
PENSION FUNDS
With respect to pension funds, the report
observes that while they are one of the most
important institutional-investor groups and
are growing at the fastest rate, "they are
notable for the dearth of information pub-
Holy available on their holdings." The re-
port concludes the Commission should rec-
ommend that the Federal Welfare and Pen-
sion Plans Disclosures Act be amended to
require "periodic" disclosures by pension
funds of their holdings of individual corpo-
rate securities.
OVER-THE-COUNTER MARKETS IN EXCHANGE-
LISTED SECURITIES
The special study reports that one of the
most striking developments in the securities
markets in recent years has been the growth
of a market away from the floor of the stock
exchanges for securities traded on the ex-
changes. Because of the market's unique
character, combining elements of both the
exchange markets and the over-the-counter
markets, the study refers to it as "the third
market."
The size of this third market may be
judged, according to the report, by the fact
that in 1961 markets were made for 270 com-
mon stocks traded on the NYSE. The study
points out that while the volume of this
market is approximately only 14 percent of
NYSE volume, it has more than doubled in
the past 20 years and appears to be con- The report points out that there has been
tinuing to expand. The percentage increase an accelerating trend for the regional ex-
in volume of such trading between 1955 and changes to trade stocks listed on the NYSE,
1961 was three times the percentage in- as an offset to a continuing and significant
crease in volume on the NYSE. The list of loss of their business to the over-the-counter
stocks is described as large, diversified and market and to the two major New York
steadily expanding, exchanges.
Unlike the off-board trading of listed Of 1,168 common stocks listed on the NYSE
stocks of earlier years, which tended to con- In 1961, about 750 were also traded on one
centrate in issues of high quality and low or more of the regionals. The NYSE stocks
activity, the list now includes some of the selected for multiple trading by the regional
most actively traded stocks on the NYSE, as exchanges tend to be the most active NYSE
whether measured by number of stockholders
or of shares outstanding or dollar amount of
assets.
A notable characteristic of the market is
the stress on very large and very small trans-
actions. The, large transactions, it States,
are hardly unexpected since the handling of
block transactions by institutions has long
been accepted as a prime function of the
third market. The study also found, how-
ever, that the share volume transacted in
odd lots, i.e., transactions of less than 100
shares, constituted about 73 percent of the
transactions and 18 percent of share volume
on the offboard market, or about double the
corresponding percentages on the NYSE.
each regional exchange to concentrate on the
dual trading of securities of companies in its
vicinity.
The report discusses the factors which led
to the decline of the regional exchanges an
primary markets and observes that the major
causes of the shift to multiple markets have
included: (1) freedom from controls over
issuers in the over-the-counter markets as
compared with issuers of listed securities; (2)
greater flexibility of trading, "merchandis-
ing" and pricing practices in the over-the-
counter markets; and (3) Improvements in
communications accentuating the pull of
the New York exchange markets and foster-
ing the growth of the over-the-counter mar-
largest customers in the off-board market
being responsible for 62 percent of the dollar
volume of the third market in 1961.
INDIVIDUALS' ROLE SURPRISING
The relatively high percent of trading by
individuals in the third market, 38 percent
of dollar volume in 1961, is described by the
report as surprising.
Off-board trading of listed securities takes
place in many ways, according to the study,
but the great bulk occurs in over-the-counter
markets for listed securities "made" by brok-
er-dealers specializing in such trading and re-
ferred to. by the study as the "market
makers." Some 17 firms were making these
markets in 1961, with the largest part of the
volume being transacted by only 7 firms.
The study reports that though off-board
trading in listed stocks necessarily accounts
for some diversion of volume from the pri-
mary exchange market, this diversion is rela-
tively low in more than 70 percent of the
272 stocks traded in the third market in 1981.
Furthermore, much of the trading is in large-
size transactions which might create a tem-
porary imbalance on the exchange so that
pair depth in the primary market. Also, to The second part of the Securities and Ex-
the institutional customers of this market, change Commission's special study of the
the off-board market has the effect of adding markets is much more technical than the
to the depth of market, because it makes first. Its new recommendations are also
available the benefit of the market maker's considerably more drastic. William L. Cary,
substantial resources in addition to the trad- chairman of the SEC. has reiterated that
ing and resources available on the public the study should not impair confidence in
market of the exchange. Wall Street; but many of the proposed re-
MARKET BENEFICIAL
The third market has been, on balance,
beneficial to investors and the public inter-
GENERAL CONCLUSIONS
The special study concludes its chapter on
thQ interrelationships of -trading markets
with recommendations that the commission
improve its facilities for the continuous ac-
cumulation of data relating to trading mar-
kets and that the commission establish a
permanent policy and planning unit with the
responsibility of accumulating and analyzing
data bearing on market patterns and prac-
tices.-The growth of multiple trading of NYSE
securities raises two competing considera-
tions, according to the report. One is the
impairment of the depth of the primary mar-
ket. On the other hand there are the gen-
eral public benefits of competition that may
be provided by multiple markets.
The study concludes, not that impairment
of depth in the primary markets is irrelevant
or inconsequential, but that, under present
circumstances, the benefits of competition
by and. large outweigh any detriment attrib.
utable to that impairment.
[From the New York Times, July 18, 1963]
forms involve basic changes in the structure
of the securities industry.
In essence, the report calls for higher
est. By and large, the competition afforded is standards and stricter regulation in prac-
substantial and the impairment of depth tically every area of the marketplace. It is
limited. It declares "that the very existence evident that the rules governing the flnan-
of this market to satisfy needs not met by cial community are inadequate to cope with
the exchange market is indeed affirmation of the present mass market. The need to pro-
the inherent strength and viability of a sys- test the public demands elimination of
ten of free markets." every last vestige of the days when Wall
The study concludes, however, that the Street was a closed shop of professional
acute lack of data concerning this market - investors speculators.
must be corrected if the market is to be fully There e can and n Nor
safeguard the no culasprse interests dispute of with
the e public. reforms that
Nunderstood.
mooed practices simply because they are
The regional stock exchanges are the 14 well entrenched. The financial community
exchanges located outside of New York City. cannot maintain privileges- without respon-
In 1962, a total dollar volume of $3,750 mil- sibility.
lion was traded through the facilities of This is the main burden of the report. It
these exchanges, representing 8.9 percent of -calls for stricter supervision of the vast
the total dollar volume of securities traded over-the-counter market as well as increased
on all American stock exchanges during 1962. regulation of the exchanges, including re-
It is In the public interest to maintain a strictions on specialists, short selling and
strong regional exchange system, the report commission business. Its stress on the pub-
concludes. lie interest is also evident in the suggcted
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CONGRESSIONAL RECORD - SENATE July 18
reforms of the "odd lot" business. The
study questions whether trading In odd lots
(orders of less than 100 shares), which
represents the transactions of small Investors
and comprises a significant amount of busi-
ness on the listed exchanges, should be more
costly than other transactions, now that
automation is available.
Its odd lot reforms and Its proposal com-
pletely to eliminate floor traders are the
most controversial of the study's recommen-
dations. The report regards floor traders as
an anachronism in the present market.
According to Its evidence, floor traders are
in a privileged position and often accentuate
market fluctuations.
These specific recommendations call for
further study and debate. The report Is
primarily motivated by the laudable desire
of protecting the public; but the economy-
and the public-is best served by a liquid
and responsive market which requires a cer-
tain degree of speculative activity and a
wide variety of competition. On this score
there is some question that the study takes
full account of what makes the market tick.
The detailed examination of the Institu-
tions involved in the trading of securities
reveals that neither the listed exchanges
nor the vast over-the-counter market, which
has been pretty much of a mystery until
now, has fully acknowledged Its responsi-
bilitles. Wall Street has the most to gain
from reforms that will strengthen the mar-
ketplace. Its responsiveness to the need for
change is the key to Increasing participation
by the public.
[From the New York Herald Tribune, July
18, 19631
THE SEC's BoMssHEI.L
Yesterday's Securities and Exchange Com-
mission report blistered the financial com-
munity, which had not expected anything
nearly so severe. In essence, it holds that
self-policing has not been as effective as it
ought to be. It proposes some major tighten-
ing, aimed at wiping out the vestiges of
what it sees as the "private club" atmos-
phere of the major securities exchanges,
and hitting squarely at some well-estab-
lished prerogatives.
There is no question but that a number of
insiders in the securities business have
profited by their knowledge, by being in a
position to "feel" the market and to take
quick advantage of its movement. But what
the regulators have to weigh, primarily. Is
the effect of the various practices on the
over-all functioning of a free securities mar-
ket. Speculative activity, for example,
widens the swings of the market, but also
provides much of its vigor.
Back in 1934 a lot of financial men bit-
terly opposed the Securities Exchange Act,
which they saw as a threat to market in-
stitutions. But instead of destroying the
market it laid the basis for restored public
confidence.
It's going to take time for the financial
community to weigh in detail the five-
volume report, and it's going to take more
time to debate its recommendations ade-
quately.
Meanwhile, it's worth bearing in mind
SEC Chairman Cary's observation that,
though certain "faults and defects" exist,
these "do not call for public alarm as to the
basic integrity" of the markets. The mar-
kets not only have served the public well,
but they have made possible the phenomenal
growth of American Industry. This is no
mean achievement. Whatever improve-
ments may ultimately result from the SEC
report will be improvements in a mechanism
that already functions well.
Mr. JAVITS. Mr. President, I point
out that the study shows we have strong
institutions for trading in securities and,
on the whole, they are doing their job
well, but there are a few weaknesses, as
shown by the study, in trading in over-
the-counter accounts and in activities of
specialists and traders for their own ac-
counts which will require consideration.
Moreover, it must be remembered that
the SEC endorses the "general sound-
ness" of this part of the report but has
not endorsed specifically each finding or
proposal.
I give this pledge to the securities in-
dustry: the hearings before the Subcom-
mittee on Securities, of which I am the
senior Republican, of the Committee on
Banking and Currency on the SEC's
recommendations based on the first part
of the study report, and the legislation
which will be coming to the floor, reflect
a remarkable degree of unanimity and a
very prudent and balanced point of view
on the part of both the industry and the
Securities and Exchange Commission.
Chairman Cary, in sending the second
segment of the special study report to
the Congress, states that the recom-
mendations for a solution to the prob-
lems described in this part of the report
can be eeeted without legislation,
through the medium of the rule-making
power of the SEC, with the exception of
controls over operators of "quotation bu-
reaus," which handle price quotations of
over-the-counter scientists. The secur-
ities industry will have a chance to ex-
press its views at hearings which the
SEC is required to conduct prior to the
adoption of new regulations.
Some legislation may be required. I
think I can make the same pledge that
should such legislation be introduced, it
will be handled temperately, and that all
elements of the securities industry, as
well as the Securities and Exchange
Commission, will have an opportunity
to be heard.
I think the Securities and Exchange
Commission and the study group have
done a fine job. That does not mean
I have to agree with everything they have
said in part II of the study. The urgent
thing is for the securities industry and
the Commission to confer upon the spe-
cial study's recommendations and to give
us the full benefit of their thinking.
MUNISM'S BASE IN LATIN AMER
Mr. DOMINICK. Mr. President, I am
somewhat sorry that the two distin-
guished gentlemen from Brazil who were
here a short time ago are not present to
hear this address, because the subject I
want to talk about today is Cuba as a
Communist base in Latin America,
which obviously involves Brazil as well as
the other countries in South and Latin
America.
In the past few weeks on the floor of
the Senate concrete plans have been of-
fered by Senators ALLoTT, CURTIS, and
MUNDT for American policy toward lib-
eration of Cuba. These have been con-
structive, carefully documented propos-
als designed to assist in the downfall of
the Communist regime in Cuba without
resort to war or invasion. Unfortunate-
ly, several people have asked publicly
why we should do any of these things.
They have said "communism will evolve
peacefully," or "we cannot create crises
for Khrushchev," or "any action is too
dangerous and certainly Cuba does not
menace the United States." How naive
can we get? My purpose today, Mr.
President, is to show why Cuba is a men-
ace to us, to this hemisphere, and the
degree of that menace. This will be
carefully documented and should be a
complete answer to the recent adminis-
tration trial balloons that tensions are
easing and that Khrushchev and Castro
are at heart nice people interested in
maintaining peace and order in the same
way as we are.
The President said on September 4,
1962:
It continues to be the policy of the United
States that the Castro regime will not be al-
lowed to export Its aggressive purposes by
force or the threat of force. It will be pre-
vented by whatever means may be necesssary
from taking action against any part of the
Western Hemisphere.
He further declared on September 13,
1962:
If Cuba should ever attempt to export its
aggressive purposes by force or the threat of
force against any nation in this hemi-
sphere ? ? * this country will do whatever
must be done to protect its own security and
that of Its allies.
These are the words of the President
of the United States, speaking in formal
statements on American policy with re-
spect to Cuba on September 4 and 13
of last year. Lest anyone think that
President Kennedy changed his tune
after passing through the awesome ex-
perience of the October missiles crisis,
let me quote from his policy statement
of November 20:
If Cuba is not used for the export of ag-
gressive Communist purposes, there will be
peace in the Caribbean.
Put in plain English, therefore, Presi-
dent Kennedy in those statements
warned Castro and his cohorts that there
can be no peace in the Caribbean if
Cuba is "used for the export of aggres-
sive Communist purposes."
Mr. President, what is the meaning
of these somber Presidential declara-
tions of policy? Admittedly, the phrase
"export of aggressive Communist pur-
poses" is somewhat vague, as diplomatic
language characteristically is. But the
meaning of these warnings seem to have
been clarified by the distinguished Sec-
retary of State, Mr. Rusk, a man whose
discretion and tact are the hallmarks of
his performance as this Nation's chief
diplomat.
Listen to what he said, Mr. President:
It has been made very clear that the
Armed Forces of the hemisphere, including
our own, are made available to insure that
arms that are now In Cuba not be used out-
side of Cuba, either in terms of organized
effort or through piecemeal Infiltration of
those arms into other countries of the
hemisphere.
And again he said:
President Kennedy has made It utterly
clear ? ? ? that we would not permit any
arms that are In Cuba to be used outside
of Cuba ? ? ? that if and attempt were
made to launch forays against any other
countries, that those would meet the armed
forces of the hemisphere, including those
of the United States.
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1963 CONGRESSIONAL RECORD - SENATE
These statements, made in March of
this year are even stronger than those
made earlier by President Kennedy.
One would have thought, on the basis
of such warnings as I have just quoted
from the two key people in this coun-
try, who hold responsible positions, that
Castro and his cohorts might have read
the message loud and clear, the United
States will take all steps necessary to
prevent them from engaging in forcible
and violent attempts to overthrow the
non-Communist governments of Latin
American countries. I would have sup-
posed that Castro might have been de-
terred by these ringing declarations,
threatening the use of the awesome
power of the United States to enforce
their intent.
Well, Mr. President, what has been
happening since these warnings were
uttered?
Item: On June 5, after first notifying
a Caracas newspaper that they would
attack the U.S. military mission build-
ing, a gang of eight gunman from the
Armed Forces of National Liberation, or
FALN, the Venezuelan Communist ter-
rorist organization, invaded our mission
at pistol point, overpowered four Vene-
zuelan guards, forced six U.S. Army offi-
cers to strip, and stole their uniforms and
sidearms. They then set fire to the
building and left, chanting, "Down with
Yanqui imperialism! Cuba, si! Yanquis,
no!" after trampling and burning an
American flag. Two days later, Ha-
vana's CMQ radio hailed the attackers
as "patriots." Here is a clear example
of the export from Cuba of "aggressive
Communist purposes"-if these words
really mean anything. What did we do
to redress this humiliating attack on
official U.S. representatives and our flag?
Nothing. Absolutely nothing.
Mr. CURTIS. Mr. President, will the
Senator yield?
Mr. DOMINICK. I am glad to yield
to the Senator from Nebraska.
Mr. CURTIS. I commend the dis-
tinguished Senator from Colorado for
what he is saying today. His statement
continues with well documented facts.
He has rendered outstanding public serv-
ice. It seems to me that one of the great
tragedies of the time would be to have
the United States officially follow a pol-
icy which pretended that the Cuban
problem, the Communist problem on our
doorstep, did not exist.
The Senator has given time and ef-
fort and devoted his great talent to
bringing not only to this body, but also
to the country, every reason to repudi-
ate such an idea. If our Government
follows a policy of paying no attention
to communism on our doorstep --and it
matters not what the reason is, whether
it is deliberate, or whether it is due to
the greater amount of emphasis given
to other problems, or whether it is goaded
into such a procedure by Communist ir-
ritations around the globe-the fact re-
mains that to have the communism in
Cuba problem go without attention
would be a great tragedy.
It has sometimes been said that com-
mittee hearings and committee reports
are fine, but that once they are made
they are put on the shelf and 'forgotten,
unless some researcher or historian digs monies at the Roldan Theater publicly
them out. I come back again to the in- lauding Venezuelan communism's insur-
vestigation made by the Subcommittee rectionary arm, the Armed Forces of Na-
on Preparedness of the Armed Services tional Liberation, the FALN. Around the
Committee, and its clear cut statement same time in Caracas, FALN terrorists
on the danger of the Russian Commu- attacked a police post just 600 yards from
nists in Cuba and what will happen if the Miraflores Palace, which houses the
it is not solved. offices of Venezuela's President Betan-
I believe that this is one committee court. Two police guards were taken
report which not only should be required as hostages, and quantities of small arms,
reading, but should be required reading including three machineguns, were
weekly by responsible persons in our stolen. Havana radio gleefully reported
G
overnment, until the problem is solved.
I commend the Senator on his state-
ment. I ask unanimous consent that
following the remarks of the distin-
guished Senator from Colorado, and any
colloquy that may appear hereafter, I
may include in the RECORD an editorial
broadcast over WKRC, of the Taft
Broadcasting Co. of Cincinnati, Ohio.
The PRESIDING OFFICER. (Mr.
BARTLETT in the chair). Without ob-
jection, it is so ordered.
Mr. DOMINICK. Mr. President, I
thank the Senator from Nebraska. I am
glad he brought up the report of the
Preparedness Subcommittee, because it
is one of the things I will specifically re-
fer to in my remarks. One of the rea-
sons why I have undertaken to make
these remarks is to try to detail abundant
evidence of the need for the positive ac-
tion which has been recommended by the
Senator from Nebraska, by my distin-
guished colleague from Colorado [Mr.
ALLOTTI and by the Senator from South
Dakota [Mr. MUNDT].
I was discussing the' items of Commu-
nist aggression which have occurred out
of Cuba, the export of Communist ag-
gression, since these statements of policy
were made, in order to show that we are
not, in fact, doing what we said we would
do. I have already spoken about the
first one, in Venezuela. I should like to
take up the next one.
Item: The Minister of Interior of the
Colombian Government recently charged
that "Peasants' Leagues," similar to the
militant Communist groups in north-
eastern Brazil, are operating in two Prov-
inces of his country and are being fi-
nanced, armed, and staffed by Castro's
Cuba. Does this not constitute a clear
case of the export from Cuba of "aggres-
sive Communist purposes?"
Item: Excelsior, a Mexico City news-
a cache of arms by a member of the
,on the Yucatan Peninsula, the part of
Mexico nearest Cuba and reportedly a
depository for arms shipped clandes-
tinely from Cuba. The account of this
incident did not describe its outcome, ex-
cept to say that the patrolman left the
scene when he saw that the cache was
guarded by armed men "who spoke
Spanish with a Cuban accent." -Lil.?-
Washin ton D.C. rumors have circu-
lm or some time that Similar arms
cases have been located by but
permission to "I eS roy "em as een
of Communist aggression with nothing
done about it despite our declarations of
policy.
the incident. This is another clear ex-
ample of the export from Cuba of
"aggressive Communist purposes."
Item: On May 1 at a labor congress in
Prague, the Cuban delegate told the
assemblage that Cuba was striving pri-
marily "to stimulate support for the peo-
ple of Venezuela, Colombia, and Nica-
ragua-with the aim of overthrowing the
governments of those countries." A
plain, clear statement of intent and ac-
tion to export from Cuba "aggressive
Communist purposes."
Item: On May 20, Communist youths
attacked Puerto Maldonado in southeast
Peru. Several were arrested by the au-
thorities who subsequent discovered that
this attack was part of a Castro-Commu-
nist plan to unleash guerrilla warfare,
terror, and sabotage upon the area, and
to initiate similar operations against
Lima, the national capital, and the an-
cient Inca center of Cuzco. The captured
guerrillas were part of a group of 69
young Peruvians who had received 6
months of training in Cuba in guerrilla
warfare and related violent activities un-
der the direction of Maj. Ernesto "Che"
Guevara, Castro's guerrilla expert. This
is further proof of the export from Cuba
of "aggressive Communist purposes."
I need not remind Senators that
Havana is not alone and unaided in
engaging in such acts as I have just
enumerated. Listen to this excerpt from
a commentary beamed in Spanish to
Latin America on June 16 by Radio
Moscow:
The presidency of Betancourt recalls the
dictatorship of Perez Jimenez. Is it any won-
der. that the people have again taken up
arms? For the patriots of Venezuela no other
course has remained. They have been forced
to rise up in defense of the freedoms which
had already been won by the people and
which President Betancourt has trampled
upon.
Not only do the Communists struggle
against the police regime of Venezuela. The
National Liberation Front created in the
country includes the movement of the Rev-
olutionary Left, the Democratic Republic
Union, and many progressive organizations.
It is natural that the order to arrest all
Communists is an additional dictatorial
measure against all democratic forces, among
them the bourgeois parties of the left of the
country.
This is an impudent declaration of war
against all Venezuelan people. Betancourt,
in defending the interests of Nelson Rocke-
feller and company, as their loyal bulldog, is
leading the country toward open dictator-
ship. History repeats itself, but it can only
repeat itself until the end, and the puppet
of the monopolists will have the same fate
as his predecessor, who, for crimes against
the people, is now passing his days behind
bars in jail
Item: On May 11 in Havana, the Na- Mr. President, here is an example, of
tional Council of Culture staged core- the export, not only from Havana but
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CONGRESSIONAL RECORD - SENATE
from Moscow as well, of "aggressive
Communist Purposes."
And so, I return to the warnings
uttered by the high command of the
Kennedy administration that I quoted
earlier. How does one account for the
Castro-Communist forces' apparent In-
difference to these warnings?
I think that a clue to what was really
meant by these statements can be de-
rived from an impromptu remark by
the President at his news conference on
April 24, when he said:
We have made It very clear that we would
not permit the movement of troops from
Cuba to another country for offensive pur-
that "the Communist offensive in Amer-
ica has been intensified even more"
during the year and a half since the
foreign ministers of the American Re-
publics meeting at Punta del Este of-
ficially took notice of the offensive and
July 18
is true not only with regard to the spread
of the Communist ideology, but also, and
what is more dangerous, because it consti-
tutes a nearby center for traning agents of
every kind whose function It is to carry on
subversion in the countries of the hemi-
sphere.
alerted the peoples of the hemisphere Mr. President, that report was made
to the dangers it posed. The commit- by an OAS committee-not by a Senate
tee mentioned three factors as account- committee, not by the Senator from
ing for the intensification of the Castro- Colorado who Is speaking, not by the
Communist offensive: President of the United States, but by a
1. The Increase in Soviet military power Committee on the eight-nation OAS it-
In Cuba; self.
2. The emplacement of Soviet offensive Thus, the finger is pointed clearly at
weapons with nuclear capability In that
same country, which precipitated the crisis Cuba as the staging area for this massive
of October 1902; and and sustained offensive against the free
poses. 3. The campaign by the Castro regime to countries of Latin America.
Here is a clear statement by the Pres- Inspire armed Insurrection In the bemi- The Central Intelligence Agency has
ident, but it alters substantially the sphere. frankly and unequivocably reported
meaning seemingly conveyed by the Remember, this report was issued on similar circumstances In a statement by
statements I quoted previously. Here, in June 4 this year. its Director, John A. McCone, before the
effect, the President of the United States With respect to the third point, the Inter-American Affairs Subcommittee of
declared that the United States would committee declared its belief that "the the House Committee on Foreign Affairs,
not permit a conventional armed attack Cuban regime has begun a new phase on February 19 of this year. Mr. Presi-
by Cuba upon any other state in this of promoting and encouraging violent dent, I ask unanimous consent to have
hemisphere. Here we come to the nub subversion In other countries of the Mr. McCone's statement printed in the
of our difficulties In failing to convince hemisphere." It traced the origins of RECORD at this point In my remarks; but
Castro and his cohorts that we are really this new phase to the aftermath of the at the same time, Mr. President, I should
determined to thwart their offensive to October missiles crisis when "spokesmen like to emphasize certain portions of the
extend Communist powers in this hemis- of the Cuban Government began making statement, because I think them quite
phere. For the problem is not the like- a series of speeches openly advocating important.
lihood of conventional military aggres- armed insurrection in Latin America There being no objection, the state-
sion by Castro's Cuba. No one seriously as a means of Introducing economic and ment was ordered to be printed in the
expects Castro's Cuba to launch a major social changes based on the Communist RECORD, as follows:
conventional- attack on any other coun- system." Fidel Castro laid down the The public pronouncements of Cuban lead-
try because he would be slitting his own general line of action in his Important ers, the daily record of events in Latin
throat. If anything could goad Uncle speech of January 16, 1963. Other America, and reports from our intelligence
Sam into finally waking up to what is Cuban leaders calling for armed insur- sources within Communist and other left-
going on south of his border, this would rection include Ernesto "Che" Guevara, That Fidel extremist del elements throughout this bemi-
be it. So one reluctantly comes to the Minister of Industries; Carlos Rafael sphere all agree on one salient conclusion:
Castro Is spurring and support-
conclusion that the ringing declarations Rodriguez, president of the National In- ing the efforts of Communists and other
made by the President and his chief for- stitute of Agrarian Reform; Bias Roca, a revolutionary elements to overthrow and
eign affairs adviser are largely meaning- member of the executive board of the seize control of the governments in Latin
less. Castro guessed it and Is acting ORI, the Integrated Revolutionary Or- America,
accordingly. ganizationsof the Communist Party; and Even before the October missile crisis-
Our own Senate Committee on Armed Armando Hart, Minister of Education. and with increasing rancor since then-Cu-
Services, In the "Interim Report on the The OAS special committee declared ban leaders have been exhorting revolution-
Cuban Military Buildup," issued May V, that the Castro-Communist offensive an movements to violence and terrorism,
and supporting their activities.
1963, by the Preparedness Investigating manifests Itself in two forms: first, the Cuban support takes many different forms,
Subcommittee, states unequivocably bringing of hundreds of Latin Americans but its main thrust is In the supply of the
among its findings: to Cuba for indoctrination and training inspiration, the guidance, the training, and
The evidence Is overwhelming that Castro in subversive tactics and techniques; the communications and technical assist-
Is supporting, spurring, aiding, and abetting and second, Implementing a plan of sab- ante that revolutionary groups in Latin
revolutionary and subversive otage, terrorism, and guerrilla action in America require.
Communist
movements throughout the Western Hemi- several Latiri American countries, no- In essence. Castro tells revolutionaries
from other Latin American countries: "Come
sphere and that such activities present a tably Venezuela. to Cuba; we will pay your way; we will train
grave and ominous threat to the peace and The committee declared Itself con- you in underground organization techniques,
security of the Americas. vinced that "the Castro regime has se- in guerrilla warfare, In sabotage, and In ter-
Mr. President, Cuba is engaged in an lected Venezuela as its primary objec- rorism. We will see to it that you get back
extensive and unremitting campaign of tive," and it Quoted the following state- to your homeland.
forcible and violent subversion aimed at ment from a speech on January 24 by "Once you are there, we will keep In touch
bringing down all non-Communist gov- the old-line Cuban Communist, Blas with you, give you propaganda support, send
you propaganda materials for your move-
ernments in Latin America. This cam- Roca: ment, training aids to expand your guerrilla
paign is being waged by Latin American When the people of Venezuela achieve forces, secret communications methods, and
Communists, supplied and led by Ha- victory, when they gain full Independence perhaps funds and specialized demolition
vana, which In turn is receiving advice from Imperialism - - - then all America will equipment."
and material and arms assistance from be Inflamed, all America will advance, all Castro. probably also tells them: "If you
Moscow and other Communist capitals. America will be freed once and for all from succeed in establishing something effective
The nature and extent of the Castro- the ominous yoke of Yankee imperialism. by way of a revoiiltionary movement in your
The their struggle Is a help to us today, their homeland, if your guerrillas come down out
Communist offensive is vividly described victory will be an even greater help. Then of the hills and confront regular armed
in a report issued June 4 by a special we shall no longer be a solitary island In the forces, then we may consider more concrete
committee of the Organization of Amer- Caribbean confronting the Yankee imperial- forms of assistance" So far, it should be
ican States, established to recommend ista, but rather we shall have a base ofsup- noted, none of the movements in South
measures to all OAS member-states to port on the mainland. America has reached this final stage. In
combat this campaign. One of the most significant conclu- many ways, Cuba under Castro Is the Latin
version of the old Comintern, inciting, abet-
Characterizing the Castro-Comma- sions reached by the eight-nation OAS Ing, and sustaining revolution wherever it
nist offensive as "a grave threat to con- Committee was the following: will flourish.
tinental unit and democratic institu- Undoubtedly Cuba now constitutes the We have evidence of more concrete Cuban
tions," this committee, of which the regional center for subversive action by In- support. Cuban nationals, for example, took
United States is a member, reported ternational communism In American. This part in the La Oroya disorders In Peru in
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1,963 CONGRESSIONAL RECORD -SENATE
12177
December. We know that some funds move, American countries as Panama, Haiti, Nica- Some of the trainees arrive, and many go
generally in cash by courier, from Cuba to ragua, and the Dominican Republic during home, by way of the Iron Curtain and West-
the revolutionaries in other countries. We the first 8 or 9 months Castro was in power. ern Europe, using Soviet, Czech, or Cuban
know that Cuba furnishes money to buy Today the Cuban effort is far more sophis- aircraft and probably on ships as well for
weapons, and that some guerrilla forces in ticated, more covert, and more deadly. In the trip between Cuba and the bloc. This
Peru, for instance, are equipped with Czecho- its professional, tradecraft, it shows guidance is another attempt to conceal their move-
slovak weapons which most probably came and training by experienced Communist ad- ments, and in some cases permits further in-
from Cuba. visers from the Soviet bloc, including veteran doctrination and training in bloc countries.
Before going into more detailed evidence Spanish Communists. We believe that the scope and volume of
of Cuban subversion in Latin America, I The ideas move fairly openly in a massive this training is being stepped up, just as we
should note that Venezuela is apparently propaganda effort. The inflammatory broad- know that it increased in 1962 over 1961.
No. 1 on Cuba's priority list for revolution. casts from Havana and the work of Prensa The basic training covers cross-country
Fidel Castro said so to the recent meeting Latina are matters of public record I do not movement of guerrillas, firing, care of weap-
of Communist front organizations for Latin need to go into. It might be worth noting ons, and general guerrilla tactics.
American women. that the postal and customs authorities in Some of the trainees remain indefinitely.
"Che" Guevara and Blas Roca both em- Panama are destroying on the average of 12 The Cubans sometimes refer to these men
phasized the outlook for revolution in Vene- tons a month of Cuban propaganda. coming as their "international brigade." Sometimes
zuela in speeches in January. into their lands. Another 10 tons a month they are formed into national units from a
We have learned reliably that the. Com- comes into Costa Rica, and most of it is particular country, in effect forming a pack-
munist Party leadership in Venezuela feels spotted either at the airport or in the post aged cadre which can be returned to the
a peaceful solution to the present situation office and destroyed. homeland at the appropriate time to lead a
is out of the question. The know-how is not only imparted to the "liberation army."
We also know that in late 1962 Commu- guerrilla trainees who come to Cuba, but-is One group of trainees was asked to mark
fist guerrilla and terrorist operations in exported in the. form of booklets. There are bridges and other similar demolition targets
Venezuela were placed under a unified com- thousands of copies of the texts on guerrilla on detailed maps of their country. These
mand which coordinates activities with the warfare by Mao Tse-tung and by "Che" Gue- trainees were also required to fill out a
other militant extremist group in Venezuela, vara scattered over all of Latin America. lengthy questionnaire on sabotage targets,
the MIR. The result has been the creation There is also a little pocket booklet, about possibilities for subversion of police, methods
of the FALN, or Armed Forces of National 21/2 by 4 inches, called "150 Questions on for illegal entry and, travel, suitable drop
Liberation. Guerrilla Warfare," written by a Spanish zones for air supply, possible points of at-
The FALN is currently trying to publicize civil war veteran, Alberto Bayo. This was tack against police, and military posts, and
its existence by such acts as the hijacking apparently printed in Cuba, and turned up, similar information necessary for direct sub-
of the freighter Anzoategui, and by acts of first in Peru. version and insurrection.
sabotage and indiscriminate shootings. Another version, with 100 questions and Three Cuban nationals were involved in the
Tres a have a also been f designed rio dissuade answers, based on Guevara's and Bayo's strike violence at La Oroya, Peru, last De-
P to Wash- books, has been written especially for Peru- cember, which culminated In some $4 million
ington. In this, of course, they have failed. vian use, and mimeographed in Peru. This worth of damage to the smelter of the Amer-
Venezuela do nowiish ne to minimize thviolence of ex- is about 5 by 8, and includes drawings on ican-owned Cerro de Pasco Mining Co.
sabotage the w9 how to place demolition charges, and charts One of these Cubans has also been direct
perts,
done with advanced types -
explosd es being shooting has reached the for calculating the force of various explo- ing the armed invasions of big ranches in
sives. There Is a Portuguese text of Gue- the Andean highlands by land-hungry In-
point in Caracas where it is not safe to go vara's book in Brazil, and a mimeographed dians. Information of this nature contrib-
out
the some secti sections of the undecapital. abridgment of Bayo's 150 questions prepared uted to the decision of the Peruvian junta
But unlessht in
by a terrorist-guerrilla organization in Co- to crack down on Communists in January.
and accomplish the assassination of Presi- 'lombia.
dent Betancourt and other high officials, the All of these textbooks stress that the guer- rillas in Brazil, in gaca, the complaint of guer
they
present wave of sabotage and indiscriminate recruited camps there was othat f they
rills must be self-sustaining. They not only had
had been recrby a promise of Cuban
shooting is not the sort of activity which tell him how to make Molotov cocktails, ex- instructors, but found there were none.
would pose a direct threat to the govern- plosives, and incendiary preparations from
n inian press
ment. The Communists have not demon- materials that he can obtain easily and some- when 'r came re apor t lit o of a in the Cuban intelligence
strated the ability to stand up to the armed times even openly at home; they stress that agent, o forces, or seize and hold government build- , relaying their complaints to Havana,
in s. his weapons, his equipment, and supplies turned up in the wreckage of the Varig air-
s should come from the enemy; that is, from liner which crashed in Peru in November.
Cuba has given guerrilla training to more the security forces in his homeland.
nationals from Venezuela than from any At least 1,000 to 1,500 persons came to bans With are are follo wing the tg the te, extb book for general the
other country. Our best estimate now is Cuba during 1962, from all the other Latin regard guaey
that more than 200 Venezuelans received American countries with the possible ex- are teling the to provision
warfare f arms. They
such training in 1962. telling the guerrilla warfstudents and
ception Uruguay, to receive ideological In- their leaders to obtain their own weapons
Many of these are engaged in terrorism in dococtririnatition or guerrilla warfare training or at home.
the cities, and others were rounded up and both. More have gone in 1963 despite the
given long prison sentences when they com- limited facilities for reaching Cuba at pres- One trainee was trained exclusively in the
mitted themselves prematurely last spring ent rifle and
. use and mM-3 su aintenance of the Gar and the
in a countryside where the rural population The largest contingents have come from Br o o wning a nd nd Hotchkiss hkiss machineguns. , and His
statemy supports the Betancourt adminis- Venezuela, Peru, Ecuador, Argentina, and Bs
Bolivia. group was told that these were were the the weapons
weFor the past year Cuban spokesmen have Some of the courses are as short as 4 ca turf s would be able to buy, steal, or
been pushing the line that Cuba provides weeks, trainees the security forces at home.
the example for Latin American revolution, , designed to let it appear that the Other trainees were told that Cuba would
with the implication that nothing more than trainees had merely attended some confer- not be sending weapons because there was
guidance needs to be exported. ends or celebration and done a little sight- a plentiful source of supply for any de-
seeing.
he said, "We promise to continue making may include intensive training in such things Leaders of militant groups ' in Venezeuela,
Cuba the example that can convert the as sabotage, espionage, or psychological war- Brazil, and Peru who have gone to Cuba
Cordillera of the Andes Into the Sierra fare. seeking assistance have been told by the
Maestra of the American Continent." The Cubans go to great lengths to con- Cuban leaders that Cuba is willing to furnish
In his speech on January 15, 1963, Castro ceal the movements of trainees. The Cuban funds, training, and technical assistance.
said that if socialism in Cuba had waited Embassy in Mexico City gives the trainee Reference to weapons is pointedly omitted.
to overturn Batista by peaceful means, Castro a visa on a separate piece of paper, so that We have within the past month again re-
would still be In the Sierra Maestra. his passport, when he goes home, will only viewed what evidence we have of military
Since the October missile crisis, "Che" show that he has been in Mexico, shipments from Cuba. '
Guevara and Education Minister Armando In other cases, particularly in the case of (1) In Peru, radio transmitters were ad-
Hart, both In public speeches and in remarks travel through Montevideo before the quar-- mittedly brought in from Cuba. (In Vene-
to visiting Communists, have been insisting antine, the Cubans- have furnished pass- zuela so much radio equipment was stolen
that what they call socialism can achieve ports under other names for travel by way last fall this was unnecessary.)
power in Latin America only by force, of Curacao.
(2) In Peru, the guerrilla trainees who
The Cuban effort at present is far more However, in the case of Peru, for instance, were rounded up in the Huampani-Satipo
serious than the hastily organized and ill- we come up with a list of 235 names of in- incident last March had been issued kits eon-
conceived raids that the bearded veterans dividuals known to have made extended taming a Czech rifle with a pistol grip, ap-
of the Sierra Maestra led into such Central stays in Cuba in 1961 and 1962, parently of bloc origin.
No. 109-9
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Only the Cuban and Venezuelan Corn- addition, couriers and travelers can go back
munist Parties are totally committed to and forth between this city and the bloc
terror and revolution. countries and Cuba at any time.
.In spite of differences over tactics and tim- In conclusion, on the whole, while Cuban-
ing between various Communist groups, all backed subversive pressure is great in all of
intend eventually to deliver the Latin Amer- Latin America, the Cubans have thus far
scan countries into the Communist-Socialist been having only limited success. For ex-
bloc. The so-called Soviet conservative view, ample. Cuban attempts to organize a Com-
as it is now espoused, is more Intent on trying munist-controlled Latin American labor
to achieve power by legal means if possible movement have not yet gotten off the ground,
and by subversion rather than by force. despite the fact that the Cubans have been
Direct Soviet Interest In Latin America to working at It for more than a year.
clearly Increasing. An excellent example of In Venezuela, despite the great subversive
this was the setting tap early in 1962 of a pressure, President Betancourt seems to be
Latin American Institute in the Academy of proving that his Government can control
Sciences of the U.S.S.R. these subversive forces. Short of some dis-
The avowed purpose of this Institute Is to aster, there is every likelihood that he will
raise the study of the problems of Latin be the first freely elected Venezuelan presi-
America, which in their own statements the dent in history to complete his term. In
Soviets claim they have neglected, to the Brazil, some moderates were elected to con-
highest possible level. gressional and gubernatorial points last fall.
Teaching of Spanish and Portuguese lan- Mr. DOMINICK. Mr. President, I
guages is to be stressed In the Institute and emphasize the following portions of the
throughout the school system. statement:
A list of subjects on which this Institute
intends to publish shows that It Is to be used The public pronouncements of Cuban
to attack the Alliance for Progess; It has al- leaders, the daily record of events in Latin
ready attacked the Alliance program in Co- America, and reports from our intelligence
lombia-a showpiece of the Alliance, sources within Communist and other left-
Posters have been placed in some Colom- extremist elements throughout this hemt-
bian universities referring to the problems of sphere all agree on one salient conclusion:
the "national liberation and workers' move- That Fidel Castro is spurring and supporting
Otherwise, however, in case after case guer-
rilla hardware turned out to have been
bought or stolen locally, or smuggled in from
the adjoining country. Latin America has a
long tradition of smugglin', a long coastline,
innumerable isolated landing fields and drop
zones, and inadequate security forces to con-
trol all such channels.
In summary, then, we have evidence that
in principle Cuba is not sending identifiable
quantities of weapons to Latin American in-
surgents at present. But we have no reason
to believe that they will not or cannot do so.
when so doing serves their stated purpose of
creating uprisings In Latin American coun-
tries.
Needless to say, this is a matter that we
consider of most serious concern and we
intensively trace every rumor that comes to
us of the importation of arms from Cuba
to Latin American countries.
Cuban financing of subversive operations
in Latin America is generally effected by
couriers carrying cash. A few examples of
these operations are:
A Venezuelan politician, Fabricto Ojeda.
returning from Cuba in March of 1962, was
seen by several witnesses to have large quan-
tities of U.S. currency stuffed in a false-
bottomed compartment of his suitcase.
There is no law against bringing currency
into Venezuela, so that authorities could
not even determine how much he brought
in. Ojeda later was captured, tried, and
sentenced to prison for guerrilla activity.
A Nicaraguan exile. Julio Cesar Mayorga
Portocarrera, was flying from Mexico to Hon-
duras In September 1961 when weather forced
the plane to overfly Honduras and land in
Nicaragua. He was found to be carrying
$3,600 in cash, which he admitted he was
bringing from Cuba for Nicaraguan rebels
in Honduras.
Last April Ecuadoran troops raided a guer-
rilla training camp in the mountains west
of Quito and arrested some 48 members of
the URJE (Union of Revolutionary Ecuadoran
Youth). The leaders of the group*admitted
having received guerrilla training In Cuba.
They also received Cuban funds to support
their activities; one item involving 644.000
reached the public press.
There are also involved bank transfers by
which Cuban money eventually reached
Latin American front groups to pay for polit-
ical and propaganda activity.
The principle that guerrillas must be self-
sustaining has obviously been applied to fin-
ances as well. Communist guerrillas have
staged numerous bank robberies in Vene-
zuela, Peru, and Argentina.
The most spectacular holdup, for instance,
was that of a bank in a Lima suburb last
year which netted almost $100,000. From the
participants who have been caught we know
that the holdup was carried out by a com-
bination of guerrillas and ordinary criminals,
who divided the loot 50-50.
Just last week a bank in an outlying Vene-
zuelan town was robbed of $25,000 by men
wearing FALN armbands.
Since the October crisis, Fidel Castro has
obviously been trying to straddle the rift be-
tween Moscow and Peiping over global Com-
munist strategy. As Mr. Martin aptly put It
yesterday, Castro's heart is In Peiping but
his stomach is in Moscow.
This same split between all-out militancy
and a more cautious policy-call It coexist-
ence or "two steps forward, one-step back"-
is reflected on the extreme left in many Latin
American countries.
Thus Cuba at present not only seeks to
serve two masters, but to choose among rival
servants in its Latin American subversions.
Castro's views on what is good for socialism
and revolution in Latin America are more
in line with those of the Chinese Communists
than the Soviets.
meats in Latin American countries" as top-
ics which will be studied by the institute.
Results of these studies will be published to
the near future In a magazine called America
Latina, Intended especially for distribution
In Latin America.
A pamphlet, apparently to be distributed
by the institute, and entitled "Alianza Para
the extorts of Communists and other revolu-
tionary elements to overthrow and seize
control of the governments in Latin America.
Even before the October missile crisis--
and with increasing rancor since then-
Cuban leaders have been exhorting revolu-
tionary movements to violence and terror-
ism, and supporting their activities.
el Progreso," will, in the words of Its her-
alds, skipping some
"unmask the economic expansion of the Again in I quote,
United States of America" In Latin America. portions )
The Institute expects to enter Into close In essence, Castro tells revolutionaries
contact with the principal Latin American from other Latin American countries: "Come
scientists and academicians during 1983. to Cuba; we will pay your way, we will train
One of the most Important Communist as- you In underground organizaton techniques,
sets in Latin America is a large number of in guerrilla warfare, in sabotage and in ter-
bloc diplomatic and Cuban missions.. These rorism. We will see to it that you get back
missions are used to further Communist sub- to your homeland for future use."
versive activities even In countries where Here is another portion which I think
there are no bloc diplomatic missions.
The Soviets and In some cases some satel- extremely valuable in trying to analyze
lites as well, have diplomatic missions in what we are facing; and, again, I am
Mexico. Brazil, Argentina, and Uruguay. quoting from the statement of Mr. Me-
The U.S.SR. maintains relations with Bo- Cone, the head of our Central Intelli-
livia but has no resident mission there. gence Agency, in his official report to the
Cuba maintains embassies in Mexico, Brazil, House of Representatives on February
Bolivia, Uruguay, and Chile.
The Chinese Communists, of course, have 19:
no diplomatic ties In Latin America except The know-how is not only imparted to the
with Cuba. That fact alone would make guerrilla trainees who come to Cuba, but Is
Cuban missions Important to the Chinese, exported In the form of booklets. There are
Only seven Latin American countries--Chile, thousands of copies of the texts on guer-
the Dominican Republic. Ecuador, Et Salva- rilla warfare by Mao Tse-tung and by
dor, GuatLrmala. Paraguay, and Peru-have "Cho" Guevara scattered over all of Latin,
no official ties whatever with any bloc Anierica. There is also a little pocket book-
country. let, about-2,16 by 4 Inches, called "150 Ques-
Uruguay offers a good example of how the tions on Guerrilla Warfare," written by a
Communist misuse diplomatic missions and Spanish civil war veteran, Alberto Bayo.
the importance the Communists attach to This was apparently printed in Cuba, and
them. turned up first in Peru.
Communist subversive activities In Uru- All of these textbooks stress that the guer-
guay are not now aimed at promoting revolu- rilla must be self-sustaining. They not only
tionary activity against the Government. In tell him how to make Molotov cocktails, ex-
this case even the Cubans appear to be much plosives, and Incendiary preparations from
more interested In retaining the good will materials that he can obtain easily and
of the government so that they can continue sometimes even openly at home; they stress
to use the country as a base of operations that his weapons, his equipment, and sup-
against Argentina, Paraguay. etc. plies should come from the enemy; that is,
Communist diplomatic missions, however, from the security forces in his homeland.
are active in supporting local Communist At least 1.000 to 1,500 persons came to
and other pro-Castro groupie to retain enough Cuba during 1982. from all the other Latin
leverage within the country so as to prevent American countries with the possible ex-
the anti-Castro groups from forcing a break ception of Uruguay, to receive ideological
in relations. Indoctrination or guerrilla warfare training
The U.S.S.R., most of the satellites, and or both. More have gone in 1963 despite
Cuba all have diplomatic missions in Monte- the limited facilities for reaching Cuba at
video---some 70 or so bloc personnel. In present.
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The largest contingents have come from
Venezuela, Peru, Ecuador, Argentina, and
Bolivia.
Some of the courses are as short as 4
weeks, designed to let it appear that the
trainees had merely attended some con-
ference or celebration and done a little sight-
seeing.
Other courses last as long as a year, and
may include intensive training in such things
as sabotage, espionage, or psychological war-
fare.
Again, part of his evidence in support
of his conclusions and his statement:
Three Cuban nationals were involved in
the strike violence at La Oroya, Peru, last
December, which culminated in some $4 mil-
lion worth of damage to the smelter of the
American-owned Cerro de Pasco Mining Co.
One of these Cubans has also been direct-
ing the armed invasions of big ranches in
the Andean highlands by land-hungry In-
dians. Information of this nature con-
tributed to the decision of the Peruvian junta
to crack down on Communists in January.
In Brazil, in fact, the complaint of guer-
rillas in training camps there was that they
had been recruited by a promise of Cuban
instructors, but found there were none. This
came to light in the Brazilian press when the
report of a Cuban intelligence agent, relaying
their complaints to Havana, turned up in the
wreckage of the Varig airliner which crashed
in Peru in November.
I could continue indefinitely to quote
from his statement, but all of it will
be printed in the RECORD, pursuant to my
Tequest.
Mr. President, what is being done by
the American Republics, and principally
the United States, to thwart this offen-.
live mounted against them by Havana in
cahoots with Moscow? Obviously, we
are not going to allow a direct conven-
tional attack on any country by Cuba;
but, as I already pointed out, no one
seriously worries about such an attack.
What measures, then, are being taken to
defeat the Communists in the subter-
ranean war that is being fought in the
streets, in the fields, on university
campuses, and elsewhere by small bands
of highly dedicated and well-trained
Communists?
Admittedly, the United States has a
policy. In the first place, according to
the President and other administration
spokesmen, we are trying to persuade all
members of the OAS to adopt strict and
uniform measures to sever all diplomatic
and commercial contacts with Cuba and
to curb and control the movement of
Castro-Communist personnel, propa-
ganda, and arms throughout the hemi-
sphere and between each country and
Cuba. In addition, we are told, elements
of the Armed Forces of the United States
are conducting an intensive surveillance
of the Caribbean to detect and prevent
clandestine movements of arms and
persons from Cuba to- neighboring coun-
tries. Personally, I share the skepticism
of the Senator from Kentucky [Mr.
MORTON] voiced in his excellent state-
ment in this Chamber on June 13, about
the effectiveness of this imposing assign-
ment given to our fleet and air units,
especially in light of periodic reports of
such clandestine movements that we are
pledged to prevent. The difficulties
involved in preventing any such move-
ments from an island the size of Cuba
can be seen in reverse perspective by the
refugees who have conducted attacks
on Cuban territory, or even more dramat-
ically by the inability of the East Ger-
mans and Russians to prevent escapes
from East Berlin:
As the President pointed out in his
news conference of March 6, the control
of the movement of persons to and from
Cuba "is an action which must be taken
by each of the countries in Latin Amer-
ica." He said, further:
This is the kind of thing which each coun-
try finally has to do itself, because it is part
of the element of sovereignty that the con-
trol of movement is within the country of
citizenship. ,
Thus, as the President indicated, the
effectiveness of more stringent control
measures is predicated upon their imple-
mentation and enforcement by all mem-
ber states of the OAS, and particularly
all Latin American states.
Now, Mr. President, what are the pros-
pects for success in this endeavor? Not
very encouraging, in my opinion. The
President's hopes for the adoption of
strengthened internal security measures
by all OAS member states appear to have
been. frustrated. The,report of the spe-
cial OAS committee, from which I have
been quoting, notes that "the nature,
degree, and effectiveness of the control
measures" designed to curb the flow of
Communist arms, personnel, and, propa-
ganda "vary from country to country."
Since the release of this report, over a
month ago, a further blow has been
dealt to President Kennedy's hopes for
mutual cooperation among all OAS
member states on this urgent problem.
On July 4, the Council of the OAS,
meeting in Washington, D.C., to consider
the recommendations made by the spe-
cial eight-nation OAS Committee in its
report, displayed a serious lack of con-
sensus or concert on these recommenda-
tions. While 14 members of the OAS
Council voted for the recommendations,
which is great, 1-Chile-voted against,
and 4 abstained. The abstentions
consisted of Mexico and Brazil-two
of the largest countries in America and
sites of considerable Communist activ-
ity-Haiti, and ironically, Venezuela, the
No. 1 target of the Castro-Communist
insurrectionary offensive also abstained.
Why this dissension within the OAS?
Some observers attribute it to a distaste
for harsh police measures which, it is
feared, would abridge civil liberties. I
wish I could be charitable. In my opin-
ion, Mr. President, this dissension is a
direct reflection of the lack of effective
'leadership by the United States. Al-
though the President has expressed his
hopes for stronger internal security
measures by all OAS member states, he
has not conveyed any real sense of ur-
gency nor has he put any teeth in his
expressions. In fact, Mr. President, de-
spite the Department of State's denials,
our Government has apparently told its
OAS allies that is has decided to shelve
some strong measures it had previously
contemplated on the grounds that Castro
has put the damper on some of his prop-
aganda and subversive activities in re-
cent months with the alleged result that
tensions in the Caribbean have eased.
This is fantastic, Mr. President. The
barbudo-the bearded one-looks North
and smiles at us, and we heave a great
12179
sigh of relief. Hard as it is to believe,
Mr. President, this appears to be the
case.
Mr. BENNETT. Mr. President, will
the Senator yield?
Mr. DOMINICK. I yield.
Mr. BENNETT. I wonder if we are
not going through the same experience
in Moscow now. Mr. Khrushchev
smiles at us, and we feel that all of our
problems are solved. I wonder if we
are not being given the same treatment,
and that if in order not to take the smile
off of Mr. Khrushchev's face we are very
careful not to do anything that would
upset the bearded one, and if under that
situation we are not gradually putting
ourselves into a position in which it will
be more and more difficult for us to do
anything,to help our Latin American
friends.
Mr. DOMINICK. I am delighted that
the distinguished Senator from Utah
brought out that point. That is exactly
the situation. His point is highly per-
tinent to the subject. I was so irritated
the other day in seeing'a picture of our
own special ambassador sitting and ap-
parently having a series of good jokes
with Mr. Khrushchev in Moscow that I
almost decided I would try to rewrite my
address and talk about what a complete
terrorist Mr. Khrushchev has been dur-
ing his lifetime of power.
I appreciate the contribution of the
Senator from Utah very much. He has
described a part of the problem we are
facing.
The administration, which desperately
appears to look for any sign of Commu-
nist friendliness, has fallen for the co-
existence line emanating from Havana.
In this connection; Mr. President, I call
my colleagues' attention to a dispatch
appearing in the July 5 edition of the
New York Times, entitled "United States
Discards Plan on OAS Embargo Against
Cuba Trade," which I ask unanimous
consent to have printed in the RECORD
at this point in my remarks.
There being no objection, the article
was ordered to be printed in the RECORD,
as follows:
UNITED STATES DIS~ARDS PLAN ON OAS
EMBARGO AGAINST CUBA TRADE
(By Henry Raymont)
WASHINGTON, JULY 4.-The Kennedy ad-
ministration has abandoned plans to ask
the Organization of American States to de-
clare an economic embargo against Cuba.
This is the policy at least for the time
being while the State Department searches
for ways to press for the oplitical isolation
of Cuba and for a sharper fight against
Communist subversion of the hemisphere.
U.S. officials said 2 months ago that a re-
quest for an OAS trade ban on Cuba was
"under active consideration" and would be
submitted "within the next few weeks."
These officials now believe such a ban would
serve no useful purpose.
They also believe that no new measures
will be taken against non-Communist ships
.carrying cargoes to Cuba, even though this
traffic has increased in recent months.
LATIN OPPOSITION NOTED
According to diplomatic quarters, one rea-
son for the apparent shift in U.S. plans is the
growing opposition of some important Latin
American countries to Washington's policy
in the Organization of American States.
Diplomats from, those countries believe
that some U.S. requests for action against
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CONGRESSIONAL RECORD - SENATE July 18
Cuba were designed primarily for their
political and psychological effect and to ward
off domestic critics of the Kennedy adminis-
tration.
That the mood of the Latin American
governments for new measures against Cuba
is far from unanimous was emphasized yes-
terday. The OAS Council was divided on a
series of recommendations urging member
countries to curb travel to the island and
to establish closer security ties In the hemi-
sphere.
While 14 countries voted in favor of the
recommendations, Brazil, Mexico, Venezuela
and Haiti abstained. Chile opposed the pro-
posals on the ground that they threatened to
establish "police practices" that would
violate civil rights.
One U.S. official said today that demands
for action in the economic field at this time
could create difficulties within the Inter-
American alliance far greater than the harm
they would Inflict on Premier Fidel Castro's
government.
TRADE IS NOW MINIMAL
Trade between the Latin-American na-
tions; and Cuba is minimal. It is largely re-
duced to shipments of Chilean garlic and
beans in return for sugar. The administra-
tion believed, however, that a ban on all
trade would have dramatized Latin America's
repudiation of the Cuban regime and height-
ened the island's sense of isolation.
An embargo on arms shipments to Cuba
was adopted by the hemisphere foreign min-
isters' conference at Punta Del Este, Uru-
guay, in January, 1962. The conference also
excluded Cuba from the activities of the
inter-American system because of her ties
to international Communism.
Some Latin American diplomats link the
decision not to press for a trade embargo to
the administration's appraisal of Dr. Cas-
tro's recent efforts to reduce tensions in his
relations with the United States and a
change in the atmosphere of Washington's
relations with Moscow.
State Department officials insist, however,
that there has been no change in the policy
to hasten the overthrow of Dr. Castro by all
means short of war. They also concede that
his fall Is not in sight.
RADIO SOFTENS ITS TONE
U.S. officials who have been anal-
yzing Dr. Castro's offers to normalize rela-
tions believe they are motivated by a genuine
desire to relieve external pressures on his re-
gime at a time when it must concentrate
on solving pressing economic difficulties.
They point out that Havana radio's re-
cent broadcasts to the United States and
Latin America have shown less aggressive-
ness.
Similar observations were made by Latin-
American diplomats who recently returned
from Cuba. They said that Dr. Castro had
personally assured the Governments of Braz-
zil and Mexico that he would abandon his
campaign to subvert the Latin American
nations.
These assurances, they said, stemmed from
Dr. Castro's belief that foreign pressures
against him had decreased. The diplomats
also said Dr. Castro felt that his government
had consolidated itself internally.
Dr. Castro was also reported to have been
releasing a growing number of political pri-
soners in an effort to dispel the impression
abroad that the island was governed by police
terror.
Diplomatic Informants said that an ap-
praisal of the changing situation in Cuba was
given to the OAS Council at a secret session
June 28 by U. Alexis Johnson. Deputy Un-
der Secretary of State for Political Affairs.
According to these Informants, Mr. John-
son said that there had been a "definite de-
crease of tensions" in United States-Cuban
relations. He said Cuba no longer consti-
tuted it military threat to the hemisphere.
This assessment was felt by some Latin-
American officials to differ widely from the
report discussed yesterday by the Council.
It suggested that Soviet and Cuban attempts
at subversion were Increasing.
This report was prepared by a special eight-
nation committee headed by Ambassador
Juan Bautista de Lavelle of Peru. It rec-
ommended that the hemisphere nations curb
travel to Cuba, Increase vigilance over Com-
munist-bloc diplomats and establish closer
cooperation among security agencies.
A U.S. official said the discrepancy
between the two reports might have been due
to the fact that the report discussed yester-
day was compiled In January and that "there
may hive been some new developments since
then."
Mr. Johnson was also said to have told
members of the Organization of American
States of a "marked increase" in shipment
to Cuba. mainly Involving vessels from Bri-
tain, Greece. Lebanon and Norway.
Mr. Johnson was quoted as having said
that this Increase was "discouraging" but
that new action against the shippers would
be "Ineffectual" because none of the vessels
were known to have touched U.S. ports.
Under present regulations, a vessel carrying
goods to Cuba is barred from loading U.S.
Government cargo.
The Maritime Administration, in a report
issued today. showed that 37 non-Commu-
nist-bloc vessels arrived in Cuba in April,
40 In May and 21 up to June 28. In January,
only 12 vessels made the trip.
Mr. DOMINICK. In addition, recently
in the July 22 edition of U.S. News &
World Report there was published a di-
rect quotation from an article which
bears on what the Senator from Utah
was saying. The quotation is from an
article entitled "Is a U.S. Deal With
Russia Near?" On page 28 of the maga-
zine there is the following quotation on
Cuba:
The United States for Its part Is not going
to make strong demands about getting all the
Russians out of Cuba. The existence of Cas-
tro and the presence of Russians In Cuba
are not welcomed by Mr. Kennedy, but are
being accepted as facts of life. Cuba in
other words, Is not likely to upset a deal,
provided Khrushchev keeps Russian action In
the Island within bounds.
I say to the senior Senator from Utah
I Mr. BENNETTI and to all Senators that
that is a typical example of the accom-
modation with a most gripping and ter-
rible menace our world has ever faced.
Unless we point out the danger clearly
in this country and take effective leader-
ship against it, we will slowly but surely
be nibbled to death as we continue In this
overall war of attrition with the Com-
munists.
Mr. President, it should be self-evident
from what I have said that the OAS can-
not agree on stronger measures to com-
bat the Castro-Communist offensive. It
seems clear to me that it would do so if
the United States were willing to show
some urgency and back that up with
warnings of suspension of American eco-
nomic and other assistance pending a
more favorable response to our wishes.
But, Mr. President, this administration
apparently is not willing to exercise such
leadership. Rather, it appears willing to
invoke the dissention within OAS as an
excuse for not taking the lead.
It seems clear that, at the very least,
considerable time will pass before de-
sirable and necessary control measures
can be put Into effect by all the non-
Communist states in Latin America.
Meanwhile, insurrection will continue,
and if the past few months offer any -
guide, it is likely to intensify. But we
cannot afford a significant lapse of time.
The challenge posed by the intensified
Communist campaign of subversion is
immediate and urgent.
Where does this leave us now, Mr.
President? In the absence of a deter-
mined effort to defeat the Communist
campaign of subversion, we are falling
back on the Alliance for Progress. In
fact, we are told, this is the program that
ultimately will turn the tide in our
favor-provided, I hasten to add, that
the Communists throughout Latin Amer-
lea cease their disruptive activities, roll
over, and play dead. This contention,
that only the economic and social devel-
opment of Latin America can defeat this
campaign, is based on a number of ques-
tionable premises. These premises are
myths to.me, and it is to these myths
that I now turn.
Throughout the continuing controvery
over U.S. policy with respect to Cuba-
most recently, right here on the floor of
the Senate-facts have too often been
submerged in a flood of myths. And
some myths die hard. I would not want
to conclude my remarks today without
countering one such long-lived myth-
and one with special relevance to the
question, of effective action to thwart the
Communist offensive in this hemisphere
against free and self-governing nations.
There-is nothing mythical about this
offensive, as I have already demon-
strated. It is underway, no-holds-
barred so far as the Communists are con-
cerned. They are grimly determined to
bury all free nations in this hemisphere
by every possible means. The peril is
clear and the danger present.
Nor Is there anything mythical about
Castro's Cuba-the territorial and ideo-
logical base of this massive Communist
thrust. I have offered abundant docu-
mentation of this fact as well, documen-
tation that can be neither -wished nor
winked out of existence. To blunt the
Communist offensive, there is one utterly
indispensable first step: this advance
base of world communism must be elim-
inated. Cuba must once more rejoin the
community of free nations.
Let us have no delusions on that
score-unpleasant as the facts may be.
But then the question arises: what Is
the raw material on which this offensive
feeds? Why should the Republics of
this hemisphere provide such ready tar-
gets for the appeals of communism?
What are the vulnerabilities open to
Communist exploitation? Why, specif-
ically, did Cuba fall prey to the Castro
dictatorship?
And here is where the myths begin to
take over from hard facts. And here are
the premises on which our policy of pro-
crastination is based. As a case in point,
I cite the following remarks by the Sen-
ator from Idaho LMr. CHURCH), delivered
In this Chamber on June 17, when my
senior colleague [Mr. ALLOTTI proposed
that a provisional Government of Free
Cuba be spurred into formation, to spear-
.head ultimate Cuban liberation. This is
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what was said by the Senator from
Idaho [Mr. CHURCH].
I wish to make it very clear that I
called the Senator from Idaho [Mr.
CHURCH] before I came to the floor, to
tell him I was going to make these re-
marks. I quote what the Senator from
Idaho said:
I am sure that had it not been for the
dissatisfaction of the peons in Cuba, who
worked on the great sugar plantations, it
would never have been possible for Castro
to have achieved the popular support-the
grassroots support-that enabled him to
overthrow Batista.
Let us examine this flat assertion of
"fact" opinion-and identify the myths
hidden away in it.
Myth No. 1: That pre-Castro Cuba
was a nation of oppressed and impover-
ished peasants, on the brink of mass dis-
content and latent revolt. Now, this is
a beguiling notion-but it simply is not
true. Pre-Castro Cuba was no paradise,
no promised land of social and economic
democracy, but neither was it a sink of
poverty and mass misery. Indeed, it
was not even a rural-based country;
nearly 60 percent of the population lived
in the towns and cities. Its per capita
income ranked fourth among all Latin
American countries-much higher, for
example, than that of postwar Japan and
about on a par with postwar Italy. In
the words of a leading Cuban Commu-
nist-a Communist source, let me stress:
In reality, Cuba was not one of the coun-
tries with the lowest standard of living of
the masses in America but, on the contrary,
one of those with the highest.
And, as a recognized American au-
thority.on this subject, Theodore Draper,
has concluded:
Cuba was one of the most middleclass
countries in Latin America.
Mr. BENNETT. Mr. President; will
the Senator yield?
Mr. DOMINICK. I am delighted to
yield.
Mr. BENNETT. The last statement,
that Cuba was one of the leading middle-
class countries in Latin America, may
hold the key to the reason why the Com-
munists chose to attack it, because one
of the functions of the Communist rev-
olution is to destroy the middle class.
I think this may be a very significant
factor in the situation.
Mr. DOMINICK, I agree with the
Senator from Utah. There is no doubt
that one of the main aims of communism
is to knock out all middle-class person-
nel and the economic system we have
built up from the economic bases of this
country.
There is another myth hidden away
in the statement made by the Senator
from Idaho [Mr. CHURCH].
-Myth No. 2: That the Castro revolu-
tion depended upon an outpouring of
grassroots support-and specifically,
peasant support. Once again, this
simply does not square with the facts.
The Cuban revolution, led-or rather
perverted-by Castro, was essentially a
middle-class revolution, sparked. and
manned by students, by young profes-
sionals, and by artisans and urban work-
ers, and taken over by Communists from
within. Quoting again from Theodore
Draper:
The peasantry never had in its hands any
of the levers of command of the revolution,
before or after the victory. The revolution
was made and always controlled by declassed
sons and daughters of the middle class.
It was apparent that the people who
wished to overthrow the fascist dictator
type, Batista, were used as a part of
the Communist machinations to destroy
themselves.
Mr. BENNETT. Mr. President, will
the Senator yield?
Mr. DOMINICK. I am glad to yield.
Mr. BENNETT. Did Castro come from
the peasant class?
Mr. DOMINICK. He did not.
Mr. BENNETT. Was he a doctor of
laws?
Mr. DOMINICK. I think the Senator
is correct. He was a doctor of laws.
There is no secret about these facts
and, at this late date, no room for real
disagreement or delusion. Authoritative
documentation Is readily at hand. I in-
vite the attention of my colleagues in this
connection to the first chapter of Theo-
dore Draper's excellent study, "Castro's
Revolution: Myths and Realities," pub-
lished in 1962 by Frederick Praeger.
But both these myths, misleading as
they are and however destructive of so-
ber debate, are relatively minor when
compared with myth No. 3; and that
is that the appeal of communism is pri-
marily economic, and that its road to
power is paved with human misery, pov-
erty, illiteracy, and mass discontent.
This is the false idea of "stomach"
communism. It is, at best, a half-
truth-it may help explain the avowed
goals of communism, but never, in no
single case, its dynamic origins. We
have in our hands the clear record of
many years of systematic Communist
subversion and militant political warfare.
And what is incredible is the need still
again to have to reiterate the facts and
thus blow down the myth.
But the need is urgent because the
myth of "stomach" communism is not
only enduring: but it is also influential.
And influential at the very highest levels
of the executive establishment.
It is, I submit, the major premise un-
derlying the Alliance for Progress-
which, together with other aid pro-
grams, the administration has so vastly
and so dangerously oversold as the pana-
cea for all the ills that now beset the free
world, and, in particular, the third world
of underdeveloped nations. Such prog-
ress of mutual development-assuming
they are ever effectively implemented-
hold out great. long-term hope for basic
economic growth and stability. But they
must follow tougher and more urgent
problems. They must supplement rather
than supplant efforts to obtain our im-
mediate goals: not only the removal of
the Soviet presence from this hemisphere
but also the liberation of Cuba from
Communist tyranny.
It is the myth of "stomach" commu-
nism that beguiles us into believing that
to counteract subversion, humanitarian
sympathy will do the job; that wiping
out illiteracy is the same as cutting off
systematic infiltration by trained cadres
of the Communist underground; that to
eradicate poverty is to block Commu-
nist penetration into every free republic
in this hemisphere. It is the myth, in
brief, that half-measures can blunt the
thrust of world Communist aggression.
It is the illusion that massive expendi-
tures can substitute for a militant will to
win. It is, I suggest, an invitation to
disaster.
And yet, Mr. President, it may easily
be that it is this same type of myth dis-
aster that this administration appears
to be courting. On July 9, during the
colloquy . that followed the brilliant
speech by my senior colleague [Mr.
ALLOTT], I called attention to an Allen-
Scott report which alleged that the ad-
ministration was contemplating a major
shift in policy toward Cuba whereby, in
return for the withdrawal of Soviet
troops from Cuba at a later date, the
United States would gradually resume
diplomatic and commercial relations
with the Castro regime. The text of that
report is on pages 11596 and 11597 of the
July 9 edition of the RECORD.
I commented- at the time that we
should have a clear, unequivocal answer
as to the veracity of this report, and I
was joined in that view by the distin-
guished Senator from Iowa [Mr. HICK-
ENLOOPER] who is the ranking minority
member of the Committee on Foreign
Relations.
Mr. President, I ask unanimous con-
sent that that article be reprinted in the
RECORD at this point.
-There being no objection, the article
is ordered to be printed in the RECORD,
as follows:
[From the Colorado Springs (Colo.) Gazette
Telegraph, July 1, 1963]
SHIFT IN U.S. POLICY ON CASTRO
WASHINGTON.-President Kennedy is de-
liberating a gradual shift in U.S. policy to-
ward Dictator Fidel Castro's Communist
regime in Cuba.
For more than a month, the President and
his top foreign policy advisers have been
discussing a plan under which the United
States would resume contact with Castro
on both an informal and formal basis.
Under this backstage scheme, New York
Attorney James Donovan, who negotiated the
$53 million ransom of the ill-fated Bay of
Pigs invasion prisoners, would fly to Havana
and Moscow to seek the withdrawal of all
Soviet combat forces from Cuba.
In exchange for their removal, the United
States would agree to a step-by-step nor-
malization of diplomatic and trade relations
with the Red-ruled Castro dictatorship over
a 2-year period.
As a first step, the United States would
reopen its Embassy in Havana by sending a
Charge d'Affaires there. At present the Swiss
Ambassador is handling U.S. affairs.
An exchange of Ambassadors and lifting of
the trade embargo against Castro would fol-
low after sufficient time had elapsed to make
such a drastic readjustment palatable to the
people and Congress.
This far-reaching shift in Cuban relations
is part of President Kennedy's policy of seek-
ing accommodations with Russia and its
satellite bloc for the avowed purpose of re-
ducing the risk of nuclear war by moderating
tensions.
White House insiders say the proposed
switch in Cuba policy fits squarely with
strategy enunciated recently by the Presi-
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CONGRESSIONAL RECORD - SENATE July 18
dent in a speech that "any plan of action
in the Caribbean has to take Into account
conditions and potential developments be-
tween the United States and the U.S.S.R."
THE NEGOTIATOR
The President favors 47-year-old Donovan
for this highly explosive diplomatic mission
for two reasons: his acceptability to Cas-
tro and Khrushchev. and his close ties with
key administration officials, notably Attorney
General Robert Kennedy.
After Donovan arranged the swap of So-
viet Spy Abel for U-2 Pilot Francis Gary
Powers, the President wrote him, "The type
of negotiations you undertook, where diplo-
matic channels had been unavailing, Is
unique, and you conducted it with the great-
est skill and courage.'
Castro's enthusiasm for Donovan Is about
on a par with that of the President. In
feelers through diplomatic channels to the
State Department, the Cuban dictator has
indicated he would accept Donovan as ne-
gotiator. Words to that effect have been
conveyed on three separate occasions--March
8. May 12, and May 18.
A decision on this momentous scheme will
not be made until after the President returns
from his European trip.
By that time the White House staff hopes
to know whether the House Foreign Affairs
Committee will undertake an Inquiry Into
Donovan's previous Cuban negotiations. Re-
publican committeemen are vigorously press-
ing for such an investigation. They have
strongly urged it in a joint letter to Repre-
sentative THOMAS MORGAN, Democrat, of
Pennsylvania, chairman.
CUBAN FLASHES
Richard Goodwin, freewheeling Executive
Secretary of the international Peace Corps,
is still on the State Department's payroll.
The House Appropriations Committee has
ascertained that Goodwin is drawing $19,-
856 as Assistant Secretary of State for In-
ter-American Affairs, although he left that
post more than 4 months ago. Meanwhile.
Sterling Cotrell, who replaced Goodwin, is
being paid by the Bureau of Far Eastern Af-
fairs. The House committee began checking
Goodwin's pay as Congress voted down his
request for $80.000 to set up the new Peace
Corps organization. At a meeting with
British officials. Arthur Schlesinger Jr., spe-
cial Assistant to the President, described
U.S. policy on Cuba along these lines: The
first objective is to clean up our own back-
yard In Central and South America by vig-
orous implementation of the Alliance for
Progress. The second objective Is to bring
isolated Cuba back into the Organization of
American States as a chastened. cooperating
member. (Nice tricks, if they can be pulled
off.)
Intelligence reports that around 100.000
Cubans are in Castro's jails for refusing to
accept communism. Also that some 250,000
Cubans have fled, and another 160,000 are
awaiting approval and transportation to
leave. Senator JOHN STENNIS' Armed Serv-
ices Preparedness Subcommittee Is preparing
a new report on Castro-Communist subver-
sion, sabotage, and guerrilla warfare against
Latin American countries. The report, slated
for release next month, will warn that Castro
has ordered an increase in these operations.
Although Castro has loudly proclaimed
fealty and devotion to Russia, a so-called
Cuban "scientific delegation," beaded by a
Capt. Antonio Nunez Jlminez, is en route to
Red China, ostensibly for "study and obser-
vation" purposes. Beer bottles have become
so scarce in Communist Cuba that the out-
put of beer has been seriously affected. Ap-
parently there is no lack of beer, but there
aren't enough bottles to hold it. In an effort
to overcome this shortage, the "Revolution-
ary Taxicab Drivers Association" of Santiago
has pleged to collect beer bottles free of
charge. Presumably the cab drivers will
devote their spare time to rounding up
empty bottles. Russia. whose agriculture Is
notoriously In difficulty, is sending around
100 so-called farm "specialists" to help Cuba
with Its mounting agricultural headaches-a
clear-cut Instance of the Incompetent aiding
the inadequate.
Mr. DOMINICK. Mr. President, I
reiterate my call for an answer now.
Just what is the role of James Donovan
in our sub rasa contacts with the Castro
regime? Is there any foundation to the
report of the administration's major
policy shift? These questions demand
and deserve clear, authoritative, and im-
mediate answers.
Cuba will never be liberated by a pro-
gram of long-term investment In the
economic development of Latin America.
There has never been any country, once
taken over by Communist aggression,
which has ever been freed without out-
side assistance. As a supplementary
and supporting measure, yes; but first
must come the liberation of that op-
pressed land from the grip of Commu-
nist tyranny. And until the day of
Cuban liberation, the Communist offen-
sive In this hemisphere will move for-
ward-implacably and with mounting
peril to hemispheric and U.S. security.
Toward the goal of Cuban liberation,
the proposal put forward by my distin-
guished senior colleague [Mr. ALLoTT]
is a major contribution. I commend him
for his bold initiative and for his tough-
minded penetration to the real target.
I add my appeal to his: Let us debate this
proposal and consider it on its merits.
Let us also debate the proposals of the
Senator from Nebraska [Mr. CURTIS] and
the Senator from South Dakota [Mr.
MUNDT]. If the administration has a
better plan of action, well and good. But
In either case, lot us get on with the
urgent business at hand-to translate the
hardened will of the American people
into effective action, And to do it before
the Inter-American defense system be-
comes the graveyard of free world
security.
Let us implement the President's state-
ment that we will do whatever is neces-
sary to prevent the export of Communist
aggression. Heaven knows we are not
doing it now, and we need to take action.
Everyone knows there is only one way
to do this-restoration of a free Cuba.
Mr. ALLOTT. Mr. President, will the
Senator yield?
Mr. DOMINICK. I yield to my distin-
guished colleague.
Mr. ALLOTT. I read to the Senator
the President's statement:
It continues to be the policy of the United
States that the Castro regime will not be
allowed to export its aggressive purposes by
force or the threat of force. It will be pre-
vented by whatever means may be necessary
from taking action against any part of the
Western Hemisphere.
Does the Senator Interpret that state-
ment as meaning the President believes
the present actions of Cuba do not con-
stitute aggressive threats against this
country and against this hemisphere?
Mr. DOMINICK. All I can say is that
the lack of action of any kind by us
would certainly seem to Indicate that the
President does not think this is export
of Communist aggression. How he can
come to that conclusion I cannot under-
stand. If he does not mean this, he
must mean a shift in policy.
Mr. ALLOTT. My colleague later
quoted the President again when he
said, In substance, that the armed forces
of the hemisphere-and I refer to the
quotation used by my colleague-includ-
ing our own, are made available to in-
sure that arms that are now in Cuba
will not be shipped outside Cuba.
Has the Senator any doubt that arms
in Cuba, which originated from Czech-
oslovakia and Russia, are being trans-
ported, and that Implements of sabo-
tage are now being transported, all over
the Latin American part of this whole
hemisphere?
Mr. DOMINICK. There is absolutely
no doubt in my mind. I would add to
what my distinguished colleague has said
that not only arms in conventional
terms, physical weapons, but arms from
the standpoint of Communist indoctri-
nation, and persons trained in guerrilla
warfare, people being brought in and
shipped back, methods and promoting
revolt, are being exported by Castro as
rapidly as he can do It.
Mr. ALLOTT. The Senator is correct.
There Is one thing most people have a
harder time understanding, and that is
the means of subversion that the Sen-
ator has emphasized, but there can be
no question In anybody's mind that hard
arms are being exported throughout the
hemisphere.
I have another question, or perhaps
two. Can the Senator see any practical
difference between the net end effect
proposed in the statement of Blas Roca
and the net end effect of conventional
warfare?
The thought in my mind-and I do not
know whether It occurs to my colleague-
is that, so far as the net end result in
this hemisphere is concerned, such a
statement would have exactly the same
net end result as would conventional
warfare. Is there any question about
this in the Senator's mind?
Mr. DOMINICK. Not only is the Sen-
ator's statement absolutely correct, but
I would say that such action has the
probability of being more aggressive
than conventional warfare, because
Castro would be beaten in conventional
warfare. As long as he can confine it at
that level, he will never be beaten.
Mr. ALLOTT. If he instituted con-
ventional warfare he would Immediately
arouse the opposition of every country
In Latin America, whereas this kind is
warfare by attrition, day by day, week
by week, and month by month.
I congratulate my distinguished col-
league for participating In this continu-
ing debate upon Cuba. So far the ad-
ministration has seen fit to practically
put Its head in the sand and ignore the
fact of what exists in Cuba.
It seems to me the real contribution
of the Senator consists of two parts. The
first is calling to the minds of Americans
again the hard facts of what we are fac-
ing and what exists In Cuba. The sec-
ond Is the. diabolical myth of "stomach"
communism, which was pointed out so
well in the second part of the Senator's
speech. He has rendered real service.
I hope he will not cease in his efforts to
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 Approved For CRelease ONGRESSIONAL: RECORD 5BRR3.833, 00200240017-8 12183
.x,963
call this subject to the attention of the disregard for V.S. policies. This company our relationship in trying to get rid of
American people. has chartered 75 percent of its entire ship- the Communist menace. The only thing
Mr. DOMINICK. I thank my distin- ping capabilities to the Soviet Union, and that we have done, which we did legiti-
its vessels make up approximately one-half mately and well, was the effort last
guished colleague. of the entire British tonnage now engaged October ingetting rid of the missiles and
Mr. MORTON. Mr. President, will the in the Cuban trade. London & Overseas
Senator yield? Freighters, Ltd., controls the London & long range bombers from Cuba. That
Mr. DOMINICK. I yield to the Sena- overseas Tankers, Ltd., a firm which has car- was a real positive statement to Mr.
tor from Kentucky. ried more oil to Cuba than any other single Khrushchev to get out. The Russians
Mr. MORTON. I, too, have been very company since Castro assumed power. The got out, as far as they have gotten out
mis-
much impressed by the eloquent argu- chartering of the London Statesman is just since, with long-range bombers and mis-
another example of the lack of control exer- siles, even though we are not sure of the
ment presented by the junior Senator cised by the Department of Agriculture over total effect. There has been nothing
from m Colorado. o. He has rendered a real the chartering practices of foreign trade done to try to develop a position of lead-
go in pointing out the myths that missions."
go with the dialogues in connection with The AMA urged President Kennedy to pro- ership which would provide us and all
Cuba. hibit the owners of ships trading with Cuba the Latin American countries with the
It was called to my attention today from carrying any U.S. Government-financed ability to put Cuba back what the sside of
hould
that the American Maritime Association, cargo. It said similar rules should be applied the free nations. This is through its legislative director, sent a to steamship companies that trade with Com- be doing, in my opinion.
letter to the President on the subject of munist China, North Vietnam, and North Mr. GOLDWATER. Again I thank the
Korea. Senator from Colorado for his continu-
the rather loose application of our pres-
sures on friendly nations to desist from Mr. MORTON. Again I commend the ing effort in this field, and the other Son-
making their merchant ships available Senator for keeping this discussion alive. ators on this side of the aisle who have
to the Cuban trade. It has summarized It is certainly one that should be kept joined with him, to point out to the
it in a press release dated today, Thurs- before the Congress and the American American people the dangers which ex-
day, July 18th. Since it bears on the people, and it is one of the problems that ist in Cuba. I am sure that if the Amer-
present discussion, I ask unanimous con- will face our Nation for many days-not ican people have to depend on their
sent that it may be made a part of the that Cuba is a threat to this Nation; but President for true information on Cuba,
RECORD. once Latin America goes, we are indeed they will be waiting a long time, espe-
There being no objection, the state- threatened. cially when the President has said, "I
ment was ordered to be printed in the Mr. DOMINICK. I thank the Senator. think the United States has indicated
RECORD, as follows: A part of the purpose of my speech to- very clearly that we do not accept the
NEW Yoax.-The American Maritime Asso- day was to make crystal clear that we existence and cannot coexist in the
elation appealed to President Kennedy today may have been beguiled by the so-called peaceful sense with a Soviet satellite."
to order new steps to curtail free world ship- missile infiltration into Cuba and the so- The President is not being honest
ping to Cuba, called missile takeout, and the people with the American people and with him-
Pointing out that the State Department's may have been led to believe there is no self when he continues to hide his head
efforts to curb .allied shipping to Castro have danger. The danger is more real now, in the sand to the obvious threat to our
failed, the AMA urged the President to issue
new and stronger shipping orders to halt through subversion and infiltration, than country and to the whole world.
the flow of goods to the Cuban Communists. it was in October. It is certainly not less. Mr. DOMINICK. I thank the Senator
The association, which represents 40 percent Mr. GOLDWATER. Mr. President, from Arizona.
of the American merchant marine, suggested will the Senator yield? (During the delivery of Mr. DOMINICK's
a new order denying U.S. Government-gen- Mr. DOMINICK. I yield to the Sena- address, unanimous consent was granted
crated aid cargo to all shipowners who use tor from Arizona. for the inclusion of the following edi-
any of their vessels in the Cuban trade re-
gardless whether they are owned by a Mr. GOLDWATER. I am very glad torial at this point in the RECORD:
parent t organization n or or a subsidiary. The the distinguished Senator from Colorado CUBAN PROVISIONAL GOVERNMENT
order should also be extended to include the has made the point he has just made. Kentucky's Senator THRUSTON B. MORTON,
carrying of U.S. aid cargo from foreign ports I have felt all along that the weaponry, a familiar figure to all Cincinnatians, is one
to other parts of the world, the Association the soldiers, and so forth, in Cuba, do of a group of Senators who has supported a
said. not, in themselves, constitute a military proposal that this country get moving again
The AMA's views were contained in a let- threat to the United States, but Com- on the Cuban problem.
ter written by AMA Legislative Director Ray Specifically, these men propose that we
R. Murdock and released today by the As- munism in Cuba definitely constitutes a encourage the Cuban exiles to form a unit
sociation. The announcement came on the threat to the entire hemisphere. I hope which we could recognize as a provisional
heels of a Government report that 128 free the Senator will continue to hammer this government for Cuba. It may come as a
world ships have traded with Cuba since point home, because it is quite obvious surprise to many that we still recognize the
January 1963 when the United States issued that the President of the United States Castro government-but that's the fact.
orders denying certain American-financed does not understand it. All we've done is withdraw our diplomatic
cargoes to ships that have traded with Cuba. representation. By recognizing a new pro-
Mr. Murdock said that since January, free I refer to his press conference Of _ visional government we would finally with-
world ships have docked at Cuban ports on Yesterday and to a question and answer draw all recognition of Castro.
an average of one per day, and that only two in that conference as quoted in the New But the most dramatic part of the plan
companies have asked to be removed from York Times of this morning. The ques- would be to give this new government a
the Government blacklist since it was in- tion was asked: headquarters right on Cuban soil-at our
stituted last winter. These facts, he said, . Mr. President, do you see any indications mighty Guantanamo naval base. The effect
demonstrate that the State Department's Cl- that the Castro government is seeking a would be similar to our sheltering the Gov-
forts to curb allied shipping to Cuba "must more relaxed relationship with the United ernment of Nationalist China on Formosa,
be termed a miserable failure." They also States, and, if so, are we prepared to meet behind the might of our fleet. But, in Cuba,
indicate, he said, "that we have been unable the effect could be far more productive of
to convince those presently engaged in the them in that? results. It would provide a rallying point
Cuba trade to cease operation." The President's answer was: for the Cuban underground, a reason for
Because of the loopholes in the Govern- No, I've seen these verbal statements but them to keep up efforts which lately have
rent's shipping orders, the AMA said, any I see no evidence-and, as I say, I don't-I been dwindling due to the discouragement
foreign steamship company that owns more think the United States has indicated very of a do-nothing U.S. policy. It would serve
than one vessel is permitted to continue to clearly that we do not accept the existence effective notice on the Soviet that the
trade with Cuba and at the same time to and cannot coexist in the peaceful sense United States is not kidding about its de-
carry U.S. Government-financed cargo on with a Soviet satellite in the Caribbean. mands that Soviet troops be pulled out, all
other ships. of them. It would reassert American leader-
"A perfect example of this has recently I ask my friend from Colorado if he ship in inter-American affairs. Finally, it
come to light," the association continued. feels that we are demonstrating in any would achieve exactly the objectives of the
"A British vessel, the London Statesman, has way that we cannot coexist with Com- Bay of Pigs invasion but without firing a
reportedly been chartered to carry Public munism in this hemisphere, as the Presi- shot. That whole invasion, as Senator MoR-
Law 480 grain from the U.S. gulf to Formosa dent said. TON has revealed, was planned simply -to
between July 5-15. This vessel is owned by acquire a beachhead on Cuban soil from
the London and Overseas Freighters, Ltd., a Mr. DOMINICK. I have seen no evi- which a new government could be recognized.
company which has shown a most flagrant -dense of any action whatever to show Inevitably, it was felt, the Castro regime
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 Approved MM TONAL RECORD - SENATE 38000200240017-8 July 18?
would crumble under the gathering strength
that such a provisional government would
gather.
Whether or not this is the best plan it Is
at least a plan. And until someone can come
along with a better one, we hope that the
Guantanamo proposal receives full and seri-
ous consideration.
DEPARTMENT OF THE INTERIOR
AND RELATED AGENCIES APPRO-
PRIATION BILL-CONFERENCE
REPORT
Mr. HAYDEN. Mr. President, I sub-
mit a report of the committee of con-
ference on the disagreeing votes of the
two Houses on the amendments of the
Senate to the bill (H.R. 5279) making
appropriations for the Department of the
Interior and related agencies for the
fiscal year ending June 30, 1964, and for
other purposes. I ask unanimous con-
sent for the present consideration of the
report.
The PRESIDING OFFICER, (Mr.
TITLE I-DEPARTMENT
OF THE INTERIOR
Pt?PLlc LAND M
A
NAOEt[EN2
BUREAU OF LAND Y
ANAOENENT
Management of lands and resources
----------------------
--------------------------------------------
Construction
Public lands development roads and trails (liquidation
of contract authorization)------------------------------
Oregon and California grant lands (indefinite apps
priation of receipts)________ --
?--?---__?_-_
Range improvements (indefinite appropriation of re
-
?-----_--?---_----?---
cc ip Gs) -----------------------
Total, Bureau of Land Di
anagemen#_____________-
Education and welfare services--
?---------------
Resources management----------------------------------
Revolving fund for loans---------------------------------
Construction ---------------------------------------
Road construction (liquidation of
contract authorization)-
General administrative expenses
Dfenominec educational grants-.
Total. Bureau of Indian Ait
airs, exclusive of tribal
----.----
funds--------------------
Tribal funds (not Included in to
t
ats of this tabuiatlon)_--
SERVICE
Management and protection -------------- Maintenance and rehabilitation Construction----- ---
of physical >bc'.lll lira. _
- _?
Construction (liquidation of cant
ract auihorization)
General administrative expenses _
Total, National Park Service
_________?_-____-?--
BUREAU OF OUTDOOR REGREATION
Salaries and expenses-------------------------------------
OFFICE Of TERR
ItY1R1Ea
Administration of territories -----
--__?.-_.__??.??
Trust Territory of the Pacific
ands__?________________
Total, Office of Territories .........................
Ial U
________________________
Total, Public Land Management
__?--_----_-?----
MINERAL RESOURCU
OEOLOOICAL 9
slay
Surveys, Investigations, and research
-..-?-------?-----
JORDAN of Idaho in the chair). The re-
port will be read for the Information of
the Senate,
The legislative clerk read the report.
(For conference report, see House pro-
ceedings of July 11, 1963, pp, 11787-11788,
CONGRESS20NAL RECORD.)
The PRESIDING OFFICER. Is there
objection to the present consideration of
the report?
There being no objection. the Senate
proceeded to consider the report.
Mr. HAYDEN. Mr. President, I sug-
gest the absence of a quorum.
The PRESIDING OFFICER. The
clerk will call the roll.
The legislative clerk proceeded to call
the roll,
Mr. JAVITS. Mr. President. I ask
unanimous consent that the order for
the quorum call be rescinded.
The PRESIDING OFFICER. Without
objection, It is so ordered.
Mr. HAYDEN. Mr. President, as this
bill passed the Senate it provided for ap-
propriations totaling $985,693,400 for the
agencies and bureaus of the Department
of the Interior. exclusive of the Bureau
of Reclamation and power marketing
agencies, and the various related agen-
cies, including the U.S. Forest Service.
The. conference committee bill pro-
vides appropriations totaling $958,456,-
500 for the programs and activities of
these agencies. This total is under the
budget estimates of $1,028,509,000 by
$70,052,500; over the House bill of $928,-
625,200 by $29,831,300; and under the
Senate bill of $985,693,400 by $27,236,900.
I ask unanimous consent to have in-
cluded in the RECORD, at the conclusion
of my remarks, a tabulation setting out
the appropriation for the current year,
the budget estimate. the House allow-
ance, the Senate allowance, and the con-
ference allowance for each appropriation
in the bill.
There being no objection, the tabula-
tion was ordered to be printed in the
RECORD, as follows:
Appropria.
Conference
allowance com
pared wtth-
tiuns, 190
I
l
uding
(
nc
Budget
House
Senate
Conference
Supplemental
estimates,
allowance
allow, nce
allowance
A(~propt`(a-
A
t
7904
Budget
Rouse
Senate
nn
c
,
estimate
allowance
allowance
$44, 410. 200
$46, 285, 000
143, 292, 600
844, 652, 600
$44,152, 500
-$2,133,500
+$800, 000
500
000
1, 000, 000
1, 000, 000
300.000
300, 000
30(, ODD
-760, 000
--------------
-?-
,
_
--------------
1,000,000
760.000
700, 000
700. 000
-240, 000
+10, 000
._____-_____-.
(7,176, 000)
(7,326,000)
(7,126, 000)
(7, 326, ODD)
823
(7
ODD)
,
,
--------------
--------------
?__----------
(607,000)
(907,000)
(967.000)
(967.000)
(907,000)
--------------
_^__-________
----?_-_--_-?-
43.410. 200
48.280, 000
44.342.600
46,712,600
44 212, 500
-3,073,500
+870, 000
-600, 000
82, 600, 400
85, 590. 000
92, 6t0. 000
8
9, 402.000
88, 350, 000
87,239, 300
90, 381, 600
38, 147, 900
89, 235, 250
37
691
300
-3,374,750
-1
710. 700
+885, 250
+462
000
-1,146,250
-456
000
4.000.000
n
z 000, 000
2, 000, 000
2, OK 000
,
.
2, 000, 000
,
,
,
53, n5, 000
18, 000. 000
55, 200, 000
16, 000.000
58, 1100, 000
16.000, ODD
00, 440, 000
16.000,000
60, 300, 000
15, 000, 000
+2.100, 000
-1
000, ODD
' +2,800, 000
-2,1448,000
4,190. 960
4, 312, 000
t 206.000
4, 266, 000
4,2G5.000
,
-47,000
--------------
-------
--------------
--------------
132,000
132,000
132,000
132,000
--------------
-------
--------------
--------------
= -------------
108.004.350
210, ON, ODD
202, 485, 300
210.874,400
200.623, 650
-4,032,450
+4,137,250
-3,760, 850
(3,000.0011)
(3,000,000)
(1,000,000)
(3,000,000)
--------------
______________
______________
______________
25, 383,904
20, 578, 360
28,81C 000
'22,'293,000
27, 008, 000
21, 876, 000
27, 376.000
21,75& 500
27,124,000
21
566
760
-1,692,000
-728
250
+56,000
+191
750
-251,000
-191
750
46,776.600
27,000. 0QD
42,942,000
29.000, 000
32, 697,000
28, 000
000
80,895,200
100
30
000
,
,
82,007, 000
000
000
29
,
-10,245,000
,
1
000
000
,
4, 196, 200
2.056,200
2,803,000
,
2,120, 000
.
,
2,153.500
,
.
2, 136, 750
+
,
,
1,100 000
-16,,75(1
120,793,
,
,524,5W
-
-
-
-
5,757.700
1.2111 ON I
2.462,000 I
1,wo 000
1, ow, 000
1,900,000
--------------
-------------
13,796.6011
13,696,000
I3,819,000
16,009,000
13. 000,000 13,000,000
13,000,000 16,000.000
13,0(10,(10(1
16,000,000
-819,000
--------------
--------------
--------------
--------------
-_.----_------
27,696,600
28,819,000
28,000,000 28,000,000
28,000,000
-819,000
_._.._-_-__-__
__?__________-
393, 166,300
115, 579.000
887, 988, 800 404, 200.100
394,260,650
-21,318,450
+6,271,750
-10, 008, 650
87,943,000
68,016,000
63,760.000 6),808,500
63,7(0.ODD
-4,315,000
______________
-1,108,500
Approved For Release 2004/06/23 : CIA-RDP65B00383R000200240017-8
 ppr` easeK2804@8/B2+~rC~11949 000217 0
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SECRET
CENTRAL INTELLIGENCE AGENCY
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TO
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DATE
INITIALS
DC I
2
3
4
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ACTION
DIRECT REPLY
PREPARE REPLY
APPROVAL
DISPATCH
RECOMMENDATION
COMMENT
FILE
RETURN
CONCURRENCE
INFORMATION
SIGNATURE
Remarks: Attached is an excerpt from the Congress-
ional Record of 18 July in which Senator Dominick
refers to CIA's having located arms caches in
Mexico. He also inserted your statement on
Communist subversion in Latin America as
released b y the Foreign Affairs Committee.
ssistant Legislative Counsel
FOLD HERE TO RETURN TO SENDER
FROM: NAME, ADDRESS AND PHONE NO.
DATE
Assist islati e Counsel 7D01
pprove or ease 204/06/23 : C1 --
9 July b
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FORM NO. (~ Use previous editions (40)
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