-DATE-
19590919
-YEAR-
1959
-DOCUMENT_TYPE-
ARTICLE
-AUTHOR-
F. CASTRO
-HEADLINE-
IMPORT REDUCTION URGED BY CASTRO
-PLACE-
HAVANA
-SOURCE-
NEW YORK TIMES
-REPORT_NBR-
FBIS
-REPORT_DATE-
19590919
-TEXT-
NEW YORK TIMES, SA

IMPORT REDUCTION
URGED BY CASTRO

9/10/59

Premier Seeks Mobilization
of Savings by Cubans
to Insure Growth

9/19/59

By R. HART PHILLIPS

Special to The New York Times

HAVANA, Sept. 18--Premier Fidel Castro declared today that a drastic
reduction in imports, the mobilization of national savings, and sacrifices
by the people were necessary if the Cuban revolution was to triumph.

In a four-hour television appearance that ended at 3 A. M., the Premier
explained the economic situation to the people and expressed confidence in
the future of Cuba.

"When we have the support of the people anyone who thinks the
revolution is going to fall is wrong," he said.

The Premier declared declared that the habit of "living like
millionaires" by the middle and upper classes had ended and that Cubans
must face realities.

He said that Cuba must save $200,000,000 in foreign exchange and that
imports would be reduced to necessities.

Dr. Castro pointed out that $30,000,000 worth of automobiles had been
imported in contrast to only $5,000,000 worth of tractors.  He said
agricultural and industrial machinery was vital to the nation and that
foreign exchange must be saved for that.

Sugar Is Key Factor

Low sugar prices and few sales by Cuban producers have caused a
shortage of American dollars in Cuba, he said, emphasizing that the Cuban
economy is still tied to its principal crop--sugar.

"One of our greatest causes of economic dependence on the United States
is sugar," he said, "and it is imperative that we diversify our production
and our markets."

Despite the fact that Cuba will restrict imports from the United
States, the Premier said, Cuba "must fight to maintain its sugar markets
there."  Cuba can buy from the United States agricultural and industrial
machinery instead of the great amounts of food not being bought, he said.

Dr. Castro explained that agrarian reform was only the beginning.

Cuba "must be industrialized," he said.

Since Cuba can expect no foreign investors to establish industries
here, the Premier called on the people to buy "savings certificates," which
will be used for industrialization, the promotion of tourism, the building
of homes for the masses and public works.

Liquor Tax Discussed

The Government expects to receive millions of dollars from the liquor
taxes just imposed said Dr. Castro, who called drinking a vice as bad as
the use of narcotics.  He said that drinking had increased 300 per cent
since the victory of the revolution last Jan. 1 and that the tax was a
"social measure."  Now, he continued, if people continue to drink alcoholic
beverages they will at least be contributing to the progress of
industrialization and agrarian reforms through the high taxes.

Speaking of the need for tourists, the Premier said that most of the
money appropriated for tourism would be spent to improve beaches, build
hotels and construct vacation centers for the Cuban people at low cost.

Cuba needs public works and improvements costing about $1,000,000,000,
according to Dr. Castro, and this must be carried out during the next ten
years.

He told the Cuban workers that loafing on the job would not be
permitted and that all must work longer hours and work harder for the
revolution.
-END-