Mr. COTTRELL. I am talking about the SAM, surface-to-air missile sites, Mig-21's, and this type of thing. Apparently they are turning many of these things over to the Cubans as fast as they can train them. A third type of technician in there is assisting in the changeover from the Western-based economy to a Russian-based economy in the economic field. There apparently are more Soviet bloc people, actually, than Russians in there now-Czechs, Rumanians, Bulgarians, and others. Mr. MINSHALL. I gather from what you said, Mr. Secretary, the military threat as far as the Russian soldiers and equipment that they have in Cuba today, is not so paramount as using it as a base for the exportation of communism and subversion. Mr. COTTRELL. I am more concerned with that point than any other; yes. Mr. Chairman, if you will allow me equal time, I would like to add to that. Mr. PASSMAN. Go right ahead. LATIN AMERICAN REPRESENTATION IN CUBA Mr. COTTRELL. I would like to mention on that other point, representation in Cuba, that we have been progressivly attempting to reduce the political links Cuba has with the Western World. They are now down to five Latin American missions in Cuba. We are not pretending that these five should not be eliminated also. Mr. PASSMAN. Did we not Mr. COTTRELL. We did not buy off the others. Mr. PASSMAN. Why continue those five in the foreign aid program if they cannot eliminate their trade with Cuba? Mr. COTTRELL. In my opinion, all the Cuban missions in Latin American countries are focal points for infection of every one of these countries, and it does not help at all to have these Cuban missions in Latin America. I want to make clear that the administration is aware of this danger. Mr. CONTE. This is important, I believe, Mr. Chairman. PUBLIC LAW 480 ASSISTANCE TO LATIN AMERICAN NATIONS RECOGNIZING CUBA How much Public Law 480 do we give to Uruguay? Mr. TENNANT. About $38 million of Public Law 480 through fiscal year 1962. Mr. CONTE. Could you supply for the record the Public Law 480 program for the other four countries that have not broken relationships with Cuba? This is another important facet. They have a food problem in Cuba today which is extreme. We could be sending wheat, corn, farina, and any of our surplus products to these countries, and they, in turn, could be selling them to the Cubans. (The information supplied follows:) Public Law 480 program to Latin American countries recognizing Cuba, 1954-63 Country: [In millions of dollars] Bolivia__. Brazil--- Chile. Mexico--- Uruguay-- Grand total_--_-. Sales of surplus commodities for dollars or local currencies. Total $52.5 390.0 131.9 46.2 37.8 658.4 344.2 144.9 169.3 Surplus commodities granted for disaster relief and economic development purposes. Mr. COTTRELL. No. Again, according to our information, this is not being done. There is very little trade between Cuba and any of the other Latin American countries. Mr. PASSMAN. Would you say we do not believe it is being done! We have been fooled too often and gotten into too much trouble, even in Cuba, by the assumption that something was not being done. We do not believe it is being done. Would that be fair? Mr. COTTRELL. No. I cannot quote the statistics, but I can get them for you, which I am sure will prove this point. Mr. RHODES. May I ask another question about this? Mr. Cottrell, the country of Uruguay is an agricultural nation. What are they doing with $38 million worth of Public Law 480 products? Mr. COTTRELL. They are importing edible oils and wheat. Mr. RHODES. What are their agricultural products? Mr. COTTRELL. Their normal source of supply of wheat is Argentina. Mr. STERNFELD. Their export products are primarily meat and wool. Mr. RHODES. So, they do not grow a lot of grain. OIL SHIPMENTS INTO CUBA May I ask Mr. Miller to play a little Battle Act game with me. We have been discussing the application of the Battle Act and whether or not it should have been invoked from time to time. It strikes me that there is one statistic which we do not have which I think maybe we should have. This is the amount of oil which has been shipped into Cuba in total since the enactment of the Mutual Security Assist ance Appropriation Act for 1963. Let us have the total, and then let us have the amount of oil which has been shipped in, in free world bottoms, and the country supplying the bottoms. Mr. COTTRELL. From what date, Mr. Rhodes? Mr. RHODES. From the date of the enactment of the Mutual Security Appropriation Act of 1963, in October 1962. Mr. MILLER. I believe we can give you a fairly precise estimate on that. Mr. RHODES. If you can, put it in the clear. If not, provide it for our information. Mr. MILLER. I would like to make one point to be very clear here, Mr. Chairman. We have no information whatsoever from intelligence sources or from any other source, that indicates any country in Latin America has shipped any arms or ammuntion or implements of war or given any economic assistance to Cuba within the last year. Mr. RHODES. Of course, I hate to say this, Mr. Miller, but our Government did not think there were any missiles in Cuba, either, until we woke up one day and there they were. Until we can improve our techniques of determining what is happening as far as Cuba is concerned, you will not be very persuasive. Mr. MINSHALL. I would like to say Roger Hilsman was the most surprised member of this group. He was then Chief of State Department Intelligence. Mr. PASSMAN. I hope to see the final report you give to Mr. Rhodes on the number of ships going into Cuba. Mr. RHODES. That is already in the record. Mr. PASSMAN. Can it all be put in the record? Mr. RHODES. I could not put it all in the record as to number of ships. It is still classified. Mr. MILLER. We are working on that particular problem. (The information will be supplied the committee.) Mr. PASSMAN. I think I read in an article, or else in a statement from the Commerce Department, that there are actually more ships from friendly nations unloading in Cuba than ships from the other countries. (Off the record.) RATE OF EXCHANGE IN CHILE Mr. PASSMAN. We were talking about escudos a day or two ago. At what rate are we supporting the escudo in Chile? Mr. Moscoso. We are not supporting them. Mr. STERNFELD. You mean what figure do we have in the book on the escudo? Mr. PASSMAN. I mean, of course, the official rate of exchange for them, as shown in the book. Mr. Moscoso. 1.4. Mr. PASSMAN. Is that the rate upon which our aid is converted for the return payments? Mr. Moscoso. No, sir; 1.847. Mr. PASSMAN. So, you show in the book 1.4. It will be converted at 1.8, but the brokerage rate is 3 and the black market rate is 3.34. Mr. Moscoso. The brokers' rate, Mr. Chairman, is a very, very thin market, $400,000 to $1 million per month. Mr. PASSMAN. I do not care if it is as thin as cigarette paper. This information is what you gave to me, and I just want you either to say this is correct or tear it up. We asked you for positive information. You handed me something that is supposed to be positive. You gave me this paper, showing the brokers' rate at 3, did you not? Mr. STERNFELD. That is correct. Mr. PASSMAN. Then the commercial bank rate is at 1.847. Mr. STERNFELD. That is right. Mr. PASSMAN. The book rate which you show here is converted at 1.4, and we are exchanging on the basis of 1.8. Mr. STERNFELD. 1.847. Mr. PASSMAN. Have I read those items correctly? Mr. Moscoso. That is correct. MIDDLE CLASS IN LATIN AMERICA Mr. STERNFELD. I have a very simple statement to make to explain the number Mr. PASSMAN. Look at the divider sheet, page 75. I believe that primarily we are trying to build up a large middle class in all these countries, are we not? Mr. Moscoso. Yes. Mr. PASSMAN. On this sheet you have: The crux of Uruguay's problem (off the record). Why did you want to classify a statement of that type? Mr. COTTRELL. This is not particularly a happy kind of statement to be read by our Uruguayan friends. Mr. PASSMAN. Are they well fed? Mr. COTTRELL. I suppose they are. Mr. PASSMAN. Are they well educated? Mr. COTTRELL. Yes. The statement under discussion is an unhappy choice of words. Mr. PASSMAN. You people call that comment confidential, do you not, in your book? Should I not be permitted to state publicly that Uruguay has a well-educated, well-fed middle class of people? Mr. COTTRELL. There is a sentence that precedes that which is not appropriate for an open record. Mr. PASSMAN. Did I read the comment correctly? Mr. COTTRELL. You did. Mr. PASSMAN. Do you want to declassify the latter part of the statement? Mr. COTTRELL. The words are not something we would like the Uruguayans to read. Mr. PASSMAN. You do have a program in Mexico this year? Mr. PASSMAN. Previously we were discussing a country that had a well-educated and well-fed, middle-class people. Would I be violating the security of the United States by leaving that observation in the record? Mr. COTTRELL. It would be inaccurate with respect to Mexico, be cause many are hungry. Mr. PASSMAN. In Venezuela, Mexico, and 100 other nations, we have a program. We were discussing a nation which has a well-educated, well-fed, middle-class of people. Mr. COTTRELL. Perhaps I am too sensitive. CLASSIFICATION OF INFORMATION Mr. PASSMAN. You run into a nation that is getting along all right, and you do not want the American taxpayer, as I interpret it, to know anything about it. Only in those cases where it looks as if they are in poverty do you put it all in there. But when we come to a nation that has an 88 percent literacy rate, a middle class of people that is well educated and well fed, and you have a big aid program for them, you do not want the facts to show in the record. Mr. MILLER. Mr. Chairman, with respect to the classification and the assessments we make, we try to make them as carefully and complete an assessment as is possible. In this context, I think it would be a violation of the security of the United States. Mr. MINSHALL. I have gone through the justifications on numerous I occasions, and the directors of all these regions say they cannot understand why there is so much classification in them, and then you come out and make a statement like that. It is ridiculous. Mr. PASSMAN. It is the most overclassified piece of monkey business ever presented to any committee of the Congress. Mr. COTTRELL. I think it only fair to say you probably should be directing your wrath at me. Mr. PASSMAN. I did not direct wrath at anybody. I am just trying to see if we can get something in the record which shows that some people somewhere are getting along pretty well. Mr. COTTRELL. Just on the point of who is responsible for the gray, I think I should take more of the responsibility for State because these books are made up by AID, and our people look them over and look for sensitive areas and put them in the gray. Mr. PASSMAN. If there is valid reason why a statement that people are well educated and well fed, and that they maintain a substantial trade relationship with the Russian bloc nations, should be classified, then I am not able to comprehend that reason. PER CAPITA INCOME IN URUGUAY Mr. ANDREWS. What is the per capita income of the 2.9 million people in Uruguay? Mr. Moscoso. $450 per year. Mr. ANDREWS. That is the per capita income? Mr. Moscoso. Yes, sir. That is the best estimate we have. VENEZUELA Mr. PASSMAN. You are requesting $1,700,000 for Venezuela, according to the first page in the book. Will you put all the spigots together and tell us the total amount, excluding the Export-Import Bank! $ Mr. Moscoso. Including Public Law 480 and military assistance Mr. PASSMAN. Your book shows $1.7 million, but in reality it is Are they eligible for aid from all the 16 spigots? Mr. Moscoso. Yes, except ROCAP. Mr. PASSMAN. Ordinarily we would examine on $1.7 million, as we look at the book, but when we put the grants and soft loan parts into it, it comes to $ and, in addition, they are eligible for all the other accounts. |