CUBAN-SPANISH COMMERCIAL RELATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00429A001200060025-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 19, 2016
• Document Release Date: May 12, 2005
• Sequence Number: 25
• Publication Date: December 20, 1963
• Content Type: IM

Approved For Rele ye 2005/064cJ'RJ'19TOO429AOO1Q0060025-4
OCI No. 3454/63
CENTRAL INTELLIGENCE AGENCY
Office of Current Intelligence
20 December 1963
CURRENT INTELLIGENCE MEMORANDUM
SUBJECT: Cuban-Spanish Commercial Relations
1. The sudden spurt in Cuban efforts to expand
commercial relations with Spain. appears to be part of
a wider Cuban effort, evident since early November, to
increase economic relations with a number of Western
mid-November, Fidel Castro had personally initiated talks
with various Western missions in Havana seeking in-
creased trade relations. Since then, Cuban trade mis-
sions have been touring Western Europe.
2. Cuban-Spanish Trade: On 15 November, the Cuban
and Spanish governments conc ud.ed an expanded trade agree-
ment calling for the Cuban export of 100,000 tons of
sugar to Spain annually for three years. This agreement
apparently supplemented an existing three-year-old trade
agreement most recently extended last February. In ad-
dition to the sugar, Cuba is to send Spain increased
auantities of tobacco and other products.
State Department review completed
25X1
25X1
25X1
Approved For Release 2005/06f 1 79T00429A001200060025-4
 Approved For Rely 2005/06/ C1 P9T00429AOo-4D0060025-4
3. For its part, Spain has long been interested
in reversing the steady decline since 1958 in its ex-
ports to Cuba, which amounted to over $12 million in
1958 and only slightly more than 1 million dollars
in 1962. While Spain was traditionally a major trad-
ing partner of Cuba, by 1961, its trade had fallen
below that of the UK, West Germany, and Canada. So
far this year, Spain has exported or agreed to ex-
port to Cuba such items as garbage trucks, copper
wire, lead plate, chemicals and food items. Recently,
Cuba imported over $5 million worth of traditional
Christmas candies and wines for the holiday season
from Spain.
4. A deal that would,call for an exchange of
Cuban sugar for Spanish-built merchant ships, which
has been under discussion between private groups in
Spain, was featured in the Madrid press on 18 Decem-
ber. However, the Spanish Director General of Ship-
building is quoted by the Associated Press as stating
that the construction capabilities of the company
involved are limited and that, moreover, the financ-
ing of the operation would be "extremely difficult."
He added that the Spanish Government has not yet
become officially aware of the matter.
25X1
25X1
25X1
Approved For Release 2005106/~A ff79TOO429A001200060025-4
 Approved For Relee 2005/06/x. 0R79T00429A000060025-4
25X1
6. Airline Connections: The regular weekly round-
trip flights by Spain's Iberia Airlines, which ceased
during the missile crisis in October 1962, were resumed
last June. The Spaniards have issued conflicting state-
ments about this air connection; sometimes they say it is
losing them. money, but it is necessary for the welfare
of the many persons of Spanish nationality living in
Cuba. They have also said that Iberia would be in the red
were it not for the Havana-Madrid run. The flights gen-
erally carry passengers, many of them refugees, on the
eastbound flights, and cargo and a few passengers on the
westbound.
7. Since last October, there has been a steady in-
crease in Cubana flights between Havana and Madrid and
in November the service became regularly scheduled, with
twice-monthly service. After US representations to the
Spanish Government following the transit of Madrid by
Cubana aircraft flying to Algeria during the border
crisis with Morocco, the Spanish Government has prohibited
Cubana aircraft from varying the agreed-upon route be-
tween Havana and Madrid.
8. Spanish position: Madrid defends its diplomatic
and commercial relations with Cuba on the basis that
Spain always tries to exhaust all possibilities of main-
taining relations with Spanish-speaking countries. It
maintains that there are large Spanish interests in Cuba
which need protection, and that Spain needs certain bene-
fits derived from its trade with Cuba. Spain says this
trade cannot possibly affect the stability of the Castro
regime one way or the other. Spain further argues that
it is heavily dependent on Cuba for sugar--the biggest
export to Spain--to meet domestic needs, since it cannot
get sugar at reasonable prices from other countries.
Approved For Release 2005/06/09 : CIA-RDP79T00429AO01200060025-4
SECRET
25X1
25X1
 Approved For Releaae 2005/06/,
8IEi I'9T00429AOOp0060025-4
9. There are some signs that the Spaniards may be
having second thoughts about their trade with Cuba. Ac-
cording to the Spanish consul in Miami, Spanish Ambassador
Garrigues is due back in Washington on 30 December from
Madrid, where he took the position with his government
that Spain should reduce its Cuban trade in order not
to offend the US.
Approved For Release 2005/06@ 61q 79T00429A001200060025-4