ECONOMIC BURDEN OF CUBA'S INVOLVEMENT IN AFRICA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81M00980R003200010025-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 16, 2016
• Document Release Date: September 7, 2004
• Sequence Number: 25
• Publication Date: February 17, 1978
• Content Type: MEMO

wing that all.of.these people were productively em-
ployed at home, their absence will cause an estimated
loss in national output of about $80 million annually;
about l percent of estimated 1976 GNP.*
SUBJECT: '.Economi.c'Burden..of Cuba's Involvement
sent about`l percent of the Cuban labor force. Assu-
on the Cuban economy or on those Cuban leaders planning
Havana's African policy. There currently are 28,000-
30,000 Cuban military,. personnel. in Africa. They repre-
. Approved For
ark ienvolvementn Africa is not an important constraint
., 2. Logistical costs have been limited to no .
more than 10 percent of the Cuban merchant marine at
any given time and a small number of aircraft. The
cost of this diversion has amounted to only about
$15 million annually at most and has not seriously
disrupted. Cuban trade patterns or commercial airlines
schedules.
3. While the costs to the economy in general
have been relatively small, the loss of skilled and
unskilled workers has caused disruption in several
sectors of the economy; the loss of unskilled workers
has been minimized, however, by increased mechaniza-
tion of the labor-intensive sugar-cane harvest and
the widespread use of student labor in agriculture.
4. While Cuba supplies the bulk of the manpower
and probably most of the subsistence and salary costs
* A majority of these personnel (perhaps 70 percent) are
reservists who have been activated for duty in Africa. Active
duty personnel would be involved in military duties at home
and consequently their absence does not represent a drain Q LC_&'J'
on the economy-
SECRET
a
Classified b
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.Most of the Soviet-made military equipment being used
for its military ',personnel in Africa, virtually all
of the materiel.'costs-are being borne by the USSR.
sonnel who are now in Ethiopia.
,..utilized to transport. many of the Cuban combat per- .
planes and'pilots to'facilitate Cuban logistics and.
has leased two IL-62s to Havana for twice-weekly
flights to Angola. Soviet passenger ships have been
.by further. Soviet~':deliveries. Moscow has provided
remainder ofthedeficit i expected to be covered
Cuba to .Angola:-) has...been . replaced by newer, and in
-.in Angola and Ethiopia is shipped directly from the
USSR.- About..,three'fifths of the equipment sent from
5. The Angolan, government also is paying for
portion of the logistics cost. In addition, we believe
that the Neto regime is. now paying for the food and
lodging of Cuban civilian advisers, and perhaps
part of the subsistence costs for Cuban military
personnel as well.
-a share of the cost of the Cuban presence there.
Angolan airlines has recently begun a weekly flight
between Havana and Luanda which will offset a small
6. Cuba's burden is also partially alleviated
by other factors. For example, Angola has constituted
a new, although relatively small, hard currency market
.for Cuban experts at a time when Havana's major tra-
ditional sugar markets--such as Japan and Spain--
have shrunk considerably. The current world sugar
surplus has made new markets extremely difficult
to obtain. Cuban sugar sales to Angola--which were
nonexistent before 1976--amounted to at least 45,000
tons in 1977. These shipments amounted to approxi-
mately $8.5 million-, or about 1.5 percent of Cuba's
estimated 1977 hard currency earnings.
7. In addition, Cuba (along with the USSR)
has obtained exclusive fishing rights in the rich,
relatively unexploited waters off Angola at a time
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when it is being:'excluded from many of its tradi-
tional fishing grounds by the expansion of maritime
boundaries.-.the. end of .1977 there were 57. Cuban
fishing trawlers based in Angola. Their catch is
percent in 1975-,-,to-143.000 tons, rose dramatically
to these waters.undoubtedly contributed to the improved
performance of-the Cuban fishing industry in 1976.
Cuba's total worldwide catch, which had fallen 13
transferredto?=Cuban factory ships for export to
Western countries:and,.to a lesser extent, for con-
sumption in. Cuba. -Although we have no information
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INTERNAL USE ONLY
X1
(Unclassified - SF) LIAISON Sent by courier to Mr. Thomas K.
Latimr~,Staff Director, House Permanent Select Committee on Intelligence,
a report on the economic burden on Cuba's involvement in Africa. This was
X1 / sent at I request in response to interest from some
of the Members.
X1
Journal - Office of Legislative Counsel
Tuesday - 21 February 1978
of our office, would be getting back to him. Mr. Long sai t He report was
34 pages long with an annex of 8 pages.
Page 3
14. (Unclassified - SF) LIAISON Received a call from Pat Long,
on the staff of the House Permanent Select Committee on Intelligence,
requesting for Thomas K. Latimer, Staff Director, a copy of the DCI's
Intelligence Report for 1977 on the Community. I told him
17. (Unclassified - SF) LIAISON Sent by courier to Mr. Thomas K.
Latimer, Staff Director, House Permanent Select Committee on Intelligence,
a copy of a CIA book cable in its sanitized version dealing with
Privacy Act reporting requirements.
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INTERNAL USE ONLY
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CENTRAL. INTELLIGENCE AGENCY
Office of Legislative Counsel
Washington, D. C. 211-50-5
Telephone:
rua.ry 1978
TO: Mr. Thomas K. Latimer
Permanent Select Committee on Intelligence
House of Representatives
Dear Tom:
The attached report is being forwarded
to you in response to interest from some of
the Members on the economic burden on
Cuba's involvement in Africa. I think
you will find it a useful report.
Sincerely,
Assistant Legislative Counsel
Attachment
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