THE WORLD malized relations with other nations of the hemisphere can obtain the products and technological and mana- gerial expertise its economy needs. ► Cuba's dependence on the Soviet Union, which has enabled Castro to sur- vive the OAS embargo and gives the So- viets their only toehold in the Amer- icas, is becoming increasingly burden- some to both Havana and Moscow. The Cubans owe the Russians at least $4 bil- lion, and the debt grows by about $1.5 million daily. The Soviets would like to be rid of this economic drain, and now, in an era of detente with the U.S., they have apparently given up any hope—for the present at least—of turning Cuba into an offensive military base. Castro no doubt wants less reliance on the Rus- sians and would probably welcome the departure of some of the Soviet "advis- ers" who help manage his economy.

CUBAN PREMIER FIDEL CASTRO GESTURING TO CROWD IN HAVANA By the beginning of next year, most Latin American countries will probably have recognized the Castro regime. The CUBA only diehards in the hemisphere are ex- pected to be the rightist regimes of Bra- zil, Bolivia, Chile and Paraguay. Emerging from Quarantine Washington, in recent months, has not tried to stop any nation from rec- One by one, the nations of the West- Cuba. But recent events have made the ognizing Castro. In fact, some observers ern Hemisphere that have boycotted resolution something of an anachro- believe that the U.S. is holding up rec- Fidel Castro's Cuba for the past decade nism. Items: ognition of Cuba out of a diplomatic have been having second thoughts. In ► The resolution was originally pro- concern for the sensibilities of the the past two years, official ties have been posed by Venezuela in protest against a Latin-American states. Proud Latin forged between Cuba and Peru, Argen- militant program by Castro and his Min- governments want to re-establish Cu- tina, Jamaica, Guyana, Barbados and ister of Industry, Ernesto ("Che") Gue- ban ties before the U.S., not after, in Trinidad-Tobago.* Last week vara, of exporting Communist revolu- order to avoid the appearance that they was added to the list when 30 jubilant tion throughout Latin America. Cuban are slavishly following Washington. Panamanian officials flew to Havana to arms and Cuban-trained guerrillas This spring the State Department went sign a declaration restoring diplomatic, turned up in the 1960s in Venezuela, the so far as to grudgingly allow Argen- economic and cultural links between the Dominican Republic, Panama, Haiti, tine subsidiaries of U.S. auto companies two nations. Next in line are Ecuador, , and Bolivia. But to sell 42,000 vehicles to Cuba, a clear Honduras, Costa Rica, Venezuela, Co- after 1967, when Guevara was killed in violation of the trade embargo. lombia—and probably the U.S. Bolivia, Castro muted his once pro- One major obstacle to improved Ha-il There has been as much economic claimed role as the "Wel- de las Am- relations has already activity as diplomatic. Cuba's trade with ericas." Today few hemisphere leaders been removed: Richard Nixon. Castro other Latin American nations may worry that the Cuban dictator will try hated the former President, blaming reach $100 million this year, up nearly to interfere in their internal affairs. him for advocating the 1961 Bay of Pigs 500% since 1969. To symbolize the im- ► The enormous jump in the world invasion, and the feelings were proba- portance he attaches to the recently de- price of sugar—Cuba's main agricultural bly mutual. The Ford Administration is veloped trade with Cuba, Brigadier Gen- product—is at last providing Castro with now expected to start reviewing its re- eral Omar Torrijos Herrera, Panama's a major source of foreign exchange. lations with Cuba. Secretary of State strongman, now smokes nothing but When he came to power in 1959, raw Henry Kissinger is already on record as long Havana cigars. Before his death, sugar was selling for 50 per lb.; it now saying that he has "an open mind" on Argentina's President Juan Peron grant- sells for nearly 30e per lb. Even though the matter. So does Castro. Earlier this ed Cuba $1.2 billion in credits to buy Ar- Castro must deliver half of his nation's year he told Canadian officials visiting gentine products, such as road-building sugar to the Soviet Union in exchange Havana that "time is the great healer. equipment, mining machinery, textiles for economic aid, he is still left with more We could be doing business with the and household appliances. In July, at a than $1.5 billion worth of sugar to sell Americans again some day." That day trade fair outside Havana the Argen- on the world market. may now be close at hand. tines sold the Cubans an estimated $100 ► Castro's style of governing has million in goods and agreed to help con- changed. He still runs a police state that struct and equip 300 enterprises in Cuba. tolerates no dissent, but he has started These diplomatic and economic de- to curb the whimsical use of power by in- velopments clearly flout the 1964 reso- stitutionalizing government processes. lution of the Organization of American The bureaucracy has greater authority, States that requires its members to break and instead of ad hoc economic deci- diplomatic relations and stop all trade sions there is now a Five-Year Plan. (except humanitarian shipments) with These changes aim, in part, at improv- ing living standards. Although Cubans 'Mexico never cut its ties with Cuba. The leftist now eat better, are healthier and claim government of Gossens in Chile the highest literacy rate in Latin Amer- re-established relations with Cuba in 1970, but they were severed again last year after Allende ica. there are still enormous shortages was toppled by a right-wing military coup. of all kinds of goods. Only through nor-

TIME. SEPTEMBER 2. 1974