The Havana Conference served Fidel Castro as a life-preserver for his insecure regime. It served in the first place as a device to divert the attention of his downtrodden Cubans from the rigors of a bankrupt economy.

First-hand testimony regarding,, Cuban conditions was presented to the House Committee on Un-American Activities on June 11, 1965, by Juanita Castro Ruz, the sister of Fidel Castro, who found conditions unbearable and defected on June 20, 1964, deciding to acquaint the world regarding the true state of affairs Under the Castro dictatorship.

She described economic conditions as follows:

Miss CASTRO. When Fidel came into power, he devoted himself to the task of destroying the main Cuban industry, which was the sugar industry. I remember he said many times that we had to get away from a one-crop economy, that we had to diversify, not only on the farms but in industry also.

Not knowing what he was doing, he ordered the destruction of many canefields, to the amazement of those that knew that was the worst mistake possible. Ile talked about trying to build tip industry in Cuba and that Russia would send him whatever equipment and machinery he might require.

Besides all of this, also the Cuban peasants to whom Fidel had promised more land than just agrarian reform, well, Fidel was very far from fulfilling his promises to these peasants. The Cuban peasants, all of whom believed in Fidel, like all the rest of the Cubans, saw day by day how the wealth of the country, how their own livelihood, disappeared.

The Cuban peasants are one of the groups in Cuba who have completely ref used to cooperate with Fidel. They have absolutely refused, in spite of all threats, to work on the fields.

Miss CASTRO. All of the sugar mills in Cuba, all the sugar cane plantations, were confiscated by Fidel. There were even sugar mills that were dismantled and the machinery sent to Russia as pavement for Cuba's debts with Soviet Union for arms.

He did not distribute the land among the peasants, as he had promised, through the agrarian reform. He has forced them to work these so-called cooperatives or people's farms. The peasants have totally refused to do this and they do not cooperate with Fidel; they do not work in the fields.

Besides, during this last sugar crop, due to the fact that the peasants have refused to work, Fidel has been forced to take to the fields all the people of Cuba, including, students, public employees, even school children, so that they would do the work because the peasants refused to work in the fields. (Page 834.)

Miss CASTRO. Sugar production at present, in spite of the totals announced by the government, is lower than it was 10 years ago. For example, there is the fact that in 1952 Cuba produced 7 million tons of sugar. It was necessary, due to so large a production during the following years, to restrict the Cuban industry. But in spite of that it still continued to flourish.

The destruction of the sugar industry was so large that during 1959-1960, production decreased to only 3 ½ million tons.

Miss CASTRO. Standard of living in Cuba has decreased 100 percent. Although there may be some money, although some people may have some money, they can do nothing with it because there is no food to buy, no clothing, no shoes, no medical supplies. (Page 835.)

Miss CASTRO. For example, a family of five in Cuba-and I will try to be as accurate as possible, because' after I left Cuba, quite a few more items were rationed-for example, a family of five did not have the right to even one quart of milk a day, because in order to obtain this the family had to number six members. For example, a family of five had no right to fresh milk; instead, they received six cans of condensed milk per week. One quarter of a pound of meat a week was all thev received, and there were many weeks when they did not receive even this. (Page 836.)

Miss CASTRO. I said that Fidel's heart is in Peking, because on different occasions he has stated his feelings, his sympathy for the hard line of the Peking government, and that his stomach is in Moscow, because China cannot supply him with certain items that he requires, such as oil. (Page 840.)

("Testimony of Juanita Castro Ruz," House Committee on UnAmerican Activities, June 11, 1965, pages 834, 835, 836, and 840.) One of the biggest British banks (Barclays) recently summarized Cuba's 1966 position as follows:

Present situation-ecoiiomy weakening, despite excellent sugar harvest. Development dependent on aid from the Soviet bloc. Continued trade deficit. Reserves very low. No difficulties with payments for exports to Cuba, but position should be kept under review. Outlook: bleak.*

In its study of Foreign Agriculture, dated February 28, 1966, and published by the U.S. Department of Agriculture, we find the following estimate:

During the 7 years of the Castro regime, Cuba has failed to improve its sugarbased economv and has suffered a sharp deterioration in its food situation. * * * The cut in rice imports, coupled with reduced domestic output, means that the 1966 availability of rice in Cuba will probably be only half as high as even the low low 1965 level. On January 7, the monthly rice ration was cut from 6 to 3 pounds per person.'

The New York Times estimated the state of the Cuban economy in January 1966, in these words:

The present difficulties of the Cuban economy stem from the dubious ratio between the costs and rewards of sugar production. The recent concentration on sugar production has not produced the foreign dollar exchange which would eventually enable Cuba to return to a policy Of industrial and agricultural diversification. The 1965 sugar crop was the largest since 1961 and the Soviet Union buys most of the Cuban sugar at 6 cents per pound. But the free market price of only 2 cents per pound will probably limit the benefit Cuba will derive from the increase in production. Because only free market sales can provide scarce dollar exchange, they have acquired an importance out of proportion to their volume.

Food production in all commodities except for eggs has declined in the past few years. The Chinese cutback on shipments of rice (the most important Cuban staple) will further endanger the precarious economic balance. Cuba has abandoned most of her industrialization projects, although nickel production at Nicaro has continued. Delays continue to plague two major electrification projects.

According to most economists, the pathology of the one-crop economy has not been remedied by the Castro regime.

In a speech delivered on January 2, 1966, on the eve of the opening of the Tricontiiiental Conference, which also marked the seventh anniversary of the Cuban Revolution, Fidel Castro brought to light additional data regarding Cuba's economic plight. At the same time, this speech was in effect a blow at the international prestige of Comrnunist China, for which Cuba was to be compensated by the U.S.S.R. with supplies, both civil and military. We quote Prime Minister Castro in part from this speech:However, there is a product which we shall be short of this year, for reasons beyondourcontrol. That product is rice. I am going to explain these reasons to you on the basis of the report presented by our Ministry of Foreign Trade concerning the exchanges with the People's Republic of China.

The report says: "Our trade policy with China provided for a further increase in the volume of exchange in 1966, which would have meant continuing the trend of late years. * * *

"Compared with previous years, there was to have been an increase in sugar deliveries on our part and in rice deliveries by the other side.

"In mid-November our delegation arrived in Peking to discuss the trade protocol for 1966. After meetings with the Chinese authorities, the latter, made the following official statement:

"Sugar. The Chinese side will be unable to accept the 800,000 tons of sugar offered-for the following reasons:

"(a) China has had an ample crop this year;

"(b) In 1961 the U.S.S.R. lent China 500,000 tons of sugar, repayable in kind. This year China has completed the repayment of its sugar debt to the Soviet Union, using part of the sugar purchased from Cuba.

"(c) Sugar rationing has beeii abolished in China because there is a sufficient supply of it to meet the demand. * * *

"In spite of the fact that the crop was good, China does not see its way to deliver more rice than in 1964, or 135,000 metric tons,.for the following reasons:

"(a) It is necessary to create stocks in case of attack on the part of the U.S. imperialists.

11(b) China has to render assistance to Vietnam.

" (e) There is a shortage of other grain crops, which compels China to import grain from capitalist countries, and hence to use certain quantities of rice for obtaining the necessary foreign exchange." * * * 3

As regards rice, we used to import it from the United States, and since the blockade began we have been turning elsewhere for our supply, mainly to the Chinese People's Republic. Our country has never been able to meet its demand for rice and has had to import substantial quantities, especially in view of the extraordinary increase in the people's purchasing capacity.

Now to supply ourselves with our own rice, we would have to completely change our agricultural development plans for the next few years.

Like bankrupt governments which maintain themselves in power by printing more currency, communism can only maintain itself in power by continuing to export its bankrupt revolution to other countries.