-DATE- 19740301 -YEAR- 1974 -DOCUMENT_TYPE- INTERVIEW -AUTHOR- F. CASTRO -HEADLINE- CALLS FOR NEW L.A. GROUPING TO REPLACE CAS -PLACE- HAVANA -SOURCE- HAVANA PRELA -REPORT_NBR- FBIS -REPORT_DATE- 19740304 -TEXT- CASTRO CALLS FOR NEW L.A. GROUPING TO REPLACE OAS Havana PRELA in Spanish 1933 GMT 1 Mar 74 C--FOR OFFICIAL USE ONLY [Text] Havana, 1 Mar--Cuban Prime Minister Fidel Castro said today that, under present conditions, an initial effort Latin America can make is to gather together in an organization that represents their true interests. In the course of a lengthy news conference with 30 Argentine newsmen, the Cuban leader said that, in his opinion, all the Latin American countries should unite and form a "large whole" capable of confronting tomorrow's world. We are prepared to deal with another organization, but now with the OAS. The best that could be expected from the OAS is its disappearance, Fidel added. But there will be no changes in the OAS unless they occur first in its member countries, he added. The United States and the OAS constitute a true Trojan horse, Fidel Castro told one of the newsmen seated next to him. Expanding on his idea about this possible organization composed only of Latin countries, he added that Latin American nations could deal with the United States in the United Nations or bilaterally. Regarding the supposed U.S. authorization for some Argentine companies to sell to Cuba, Fidel Castro said that what is being discussed is actually a problem of sovereignty, and we know that the Argentine Government is determined that Argentine laws be complied with. He added that if the United States makes a favorable decision we know it will be the result of a question of alternatives and not a policy [words indistinct] U.S. will. The United States has never found itself in a political situation such as it faces regarding Argentina, wherein affected companies are faced with the alternative of accepting what the U.S. State Department says or what the government under which is operates says. The Argentine decision to do business with Cuba, added Castro, is a large crack in the economic blockage imposed against Cuba by the imperialists. Cuba hopes for economic integration--as much as possible--with Argentina because the economies of both countries are complementary along some lines, said Fidel Castro, accepting a cigarette from one Argentine newsman. He said that if one takes into consideration the size of the countries, the more than $1.2 billion in economic agreements signed between Argentina and Cuba are the largest ever signed by Cuba other than with socialist countries. However, it has much greater political importance because commerce between both countries is a victory of the people against imperialism, he added. Fidel said that Cuba will give preference to the Argentine market when making its purchases because we always think of our Latin American community. There is a very strong popular movement in Argentina and a parliamentary majority which approves laws, he said. Castro added that Argentina's encirclement is relatively important [word indistinct] revolution may generate a greater force than all of its neighbors pooled together. This is the case of Cuba vis-a-vis the United States. When asked if he could reveal the contents of a message from Argentine President Juan Domingo Peron, which has hand-carried by Economy Minister Jose Ber Gelbard, who recently visited Cuba, the prime minister stated that for protocol reasons he could state only that it was a "friendly message." "It is not for me to disclose the contents of this message," he added. Speaking about late Chilean President Salvador Allende, Castro said Allende did the most that he could within the limitations he had and that he deserves the respect of all revolutionaries. He stated that Allende exemplarily waged one of the most heroic battles of this continent and did not accept compromises with the enemy. He did all he could and died for his cause. "I have always felt that Allende played his role correctly and that he was a revolutionary." Castro added. Regarding Brazil, Castro said it has achieved economic growth on the bases of having surrendered its sovereignty, and the hunger, repression and crimes against the Brazilian people. Brazil's situation at this time is the final phase of that type of system, he said. Replying to several questions on the Cuban Revolution today, Castro said it is in a period of consolidation following an initial few years of a period of survival. He gave statistics on the nation's development, saying that in 1971 growth was 5 percent; in 1972, 10 percent; and last year 11.4 percent. But the most important thing, he added, is that each time Cuban production increases, the people benefit. Regarding the institutionalization that has been effected, he said that the reorganization of local government [poder local], scheduled to take place the first half of this year in one of the provinces, will mean that leaders of those organizations will be elected through universal, secret ballot by all citizens. "We must give the masses not only real but also normal participation," he said. He said that by virtue of the new (?structure), both services and industries, according to their particular characteristics, will be administrated by the city, regional or provincial government with the central government retaining control over the national services or enterprises, as in the case of railways. When asked about incentives in this stage of socialist construction, Fidel Castro reiterated that without moral stimulus there is no revolution, but that material incentives must operate within certain limits at the present stage. He pointed out that the nation is now employing certain material incentives, although it is also true that they have a meaning different from capitalism's incentives. In socialism, wages never have the compulsive force they have in capitalism because in Cuba, regardless of wages, everyone counts on sure housing, education and other benefits. Fidel Castro stated that all those who say that the heroic guerrilla intended to do away with moral stimulants slanders Che [Guevara]. What actually happened, he added, it that Che gave great importance to moral stimulants. "Our youth, for example, are being educated in a communist way," said the Cuban leader. Referring to the energy crisis, he said that prior to the recent Middle East crisis the United States was sympathetic to a certain increase in the price of petroleum, which would allow it to compete more advantageously with Western Europe and Japan. At the present time, he added, the United States can cope internally with the petroleum shortage better than Western Europe and Japan, although externally the contradictions within the capitalist world are becoming more acute. In conclusion, Fidel Castro invited the Argentine newsmen to visit Cuba for a longer period to get to know the interior, where the revolution is developing more intensively. -END-