Washington, October 7, 1958 - 8:30 p.m.

191. Deptel 175.[2] Department seriously concerned over possible implications recent rebel demands for financial contributions and any increased violence this may portend American properties and persons in Cuba particularly in eastern provinces. Recent depredations against Nicaro plant indicate some rebel moves may be unrelated to rebels' announced objective to raise funds for purchase arms. While recent Embassy and Consulate reports these questions have been very useful hope both will keep alert in assessment any future rebel moves for indications concerted attack American interests or other manifestations anti-U.S. point of view.

At moment Department believes best available course of action is to impress on rebel representatives serious view U.S. Government takes of any violence against American property interests and pointing out to these persons that any such activities are contrary lofty purposes rebels so often enunciate in explaining their case in the U.S. or in such documents as Caracas Pact, and could again cause anti-rebel reaction by U.S. press and public similar to that which occurred after June kidnappings. Department has already made these points to 26th July agent in Washington (see memo of conversation Betancourt September 30 [3]). As next step Department proposes Consulate Santiago get above message to rebels through local representatives Santiago. It should be pointed out that American companies, as is customary and in keeping with guidance offered by U.S. Government, are trying to maintain complete impartiality in internal Cuban conflict, are minding own business, and are abiding by Cuban laws. It could also be pointed out that if any U.S. companies in rebel controlled territory are forced to suspend operations because of rebel activities, the necessary resulting unemployment would certainly react negatively to the rebel cause.

If Embassy Habana agrees with this proposal request it so advise Consulate Santiago which should then make approach. [4]

Dulles

NOTES:

1. Source: Department of State, Central Files, 737.00/10-758. Confidential. Drafted by Little and Leonhardy; cleared with Wieland, Snow, Rubottom, Whiteman, McKelvey, and Murphy; approved by Rubottom; and signed for Dulles by Murphy. Repeated to Santiago de Cuba.

2. Document 138.

3. Document 142.

4. In telegram 348 from Havana and repeated to Santiago de Cuba, October 8, Ambassador Smith indicated that the Embassy agreed with this proposal. (Department of State, Central Files, 737.00/10-858) In telegram 349 from Havana, October 9, Smith recommended that Wollam be firm when he approached the rebel representatives in Santiago because the Cubans "only respect firmness." (Ibid., 737.00/10-958) In telegram 8 from Santiago, repeated to Havana, October 10, Wollam referred to indications that Embassy statements, among other things, were having some effect on the rebels and advised delay in approaching the rebel representatives. (Ibid., 737.00/10-1058) In telegram 353 to Santiago, repeated to the Department of State, October 11, Smith continued to recommend that Wollam carry out the instructions using a "firm tone." (Ibid., 737.00/10-1158) No further instructions from the Department have been found, but in telegram 201 to Havana, repeated to Santiago, October 14, the Department indicated that various rebel leaders in Miami, such as Urrutia, Cardona, and Varona, had reportedly informed Castro of the U.S. Government's views and those of other influential segments in the United States regarding the violence against American property in Cuba, as outlined in telegram 191 to Havana, and had urged Castro to stop this activity. (Ibid., 737.00/10-1458)