-DATE-
19801217
-YEAR-
1980
-DOCUMENT_TYPE-
SPEECH
-AUTHOR-
F. CASTRO
-HEADLINE-
CASTRO READS MAIN REPORT AT PCC CONGRESS
-PLACE-
PALACE OF CONVENTION
-SOURCE-
HAVANA DOMESTIC SVC
-REPORT_NBR-
FBIS
-REPORT_DATE-
19801222
-TEXT-
FIDEL CASTRO READS MAIN REPORT AT PCC CONGRESS

F1171620 Havana Domestic Service in Spanish 1513 GMT 17 December 80

[Cuban President Fidel Castro's main report to the Second Congress of the
Communist Party in Cuba [PCC] held at Havana City's Palace of Convention on
17 December--live]

[Text] Distinguished guests, Comrade Delegates: We are experiencing
exceptional and difficult times. No country today is isolated from the rest
of the world. No country lives or can live in a glass urn. What a state may
do, regardless of its size, can have repercussions for other nations. The
importance of each event, each new experience is evident in the presence in
this congress of the worthy of over 140 revolutionary, progressive and
democratic parties and organizations from all over the world. The strength
of a small country like Cuba is not military. It is no... [Castro
interrupts himself] This podium should have a raised edge or something;
there are so many papers they are about to fall off. [applause]

As I was saying: The strength of a small country such as Cuba is not
military, it is not economic--it is moral. The last nation to free itself
from Spanish colonialism has been the first in the hemisphere to free
itself from Yankee imperialist domination. It has been the first to pave a
new road to superior economic and social forms of life. It has been the
first to initiate the road to socialism in our continent. Everything in our
lives is new. This was not an easy road. We had to face the most powerful
imperialist country located just 90 miles off our coast. [We had to face]
reactionary ideas that had existed hundreds and even thousands of years:
the ferocious hate of the exploiting classes. We had to face isolation,
hostility, threats, slanders, the inexorable campaign of those who
monopolize a large part of mass information media. We had to meet
aggression and even the risk of extermination to forge ahead. We did not
always act wisely. Not all decisions were the right ones. It has never been
otherwise in any revolutionary process.

But here we are, almost 22 years since 1 January 1959. We have not
retreated. We have not made a single concession to imperialism. We have not
renounced a single one of our ideas or our revolutionary principles. This
political stance--clear, firm, unyielding, heroic and
exemplary--characterizes our revolution. Fear or vacillation never spread
in the ranks of our people and we have never hesitated in recognizing our
own mistakes or errors. Many times this requires more courage than giving
up life itself.

The wealth of revolutionary experience and ideas that have come down to us
throughout the history of our people and all humanity is our dearest
treasure. That wealth must be constantly enriched with practice and
example. It is the sacred duty of all revolutionaries. It demands the most
rigorous criticism and self-criticism and the most consistent honesty. Will
the Cuban experiment be halted? Will imperialism succeed in removing
Cuban's example from the face of the earth? Never. [applause]

Now that stormy winds are blowing in the hemisphere and the world, now that
reactionary and extreme rightist forces are entrenched in power in the most
powerful imperialist country. We simply say: Never, [applause]

Cuba may be physically removed but it will never be subjected to another's
will. It will never again be subjugated. It will never surrender. And it is
our firmest conviction that our example will be immortal. [applause]

As Marti said: Rather than give up the attempt to make the fatherland free
and prosperous, the southern sea will join with the northern sea and a
serpent and an eagle's egg will be born. [sentence as heard] [applause]
From the times of the Paris commune to the present, true communists have
been known for their heroism. No one ever surpassed them throughout history
in their capacity for sacrifice, their spirit of solidarity, their giving
of themselves, their capacity for renouncement and their determination to
die for their cause.

No political idea throughout the process of development of human society
ever met with such a degree of disinterested adherence and commitment. The
best and purest sentiments of man have manifested themselves throughout the
battles to liquidate the thousand-year-old exploitation of man by man. Only
the early Christians in the times of imperial and pagan Rome could compare
to them. But Marx, Engels and Lenin were not the bearers of mystical ideas.
Their self-sacrificing followers did not seek a reward to their sacrifices
in another world. It was here on this earth that the destiny of many had to
be changed and they were ready to face the most atrocious repression and
unhesitatingly give their lives for it, in other words, to give everything
in exchange for nothing for themselves and all for everyone else.

It is a cause for indignation to see how in our times the word
revolutionary is still sometimes used to refer to people who do not concern
themselves in the least with the exploitation of some men by others and the
cruel inequality this entails. Sometimes they even support it. The
bourgeoisie sometimes calls true reactionaries revolutionaries. We cannot
deny that someone who struggles for the independence of his fatherland in a
colonialized or neocolonialized country and that someone who fights for the
freedom of a tyrannized country is a revolutionary.

But today there is only one superior way to be a revolutionary: to be a
communist. [applause] This is because the communist embodies the idea of
independence, the idea of freedom and the idea of true justice and equality
among men. The communist embodies something further: the idea of
internationalism, that is, the brotherhood, solidarity and cooperation
among all men and nations in the world. And when the ideas of independence,
freedom equality, justice and fraternity among men and nations are joined
together, these ideas are invincible. That is what we want to be:
communists. That is what we want to go on being: communists. [applause]
That is our vanguard, a vanguard of communists. That is our congress, the
congress of the communists and a people who support them, a nation of
communists. [applause]

No force has existed, exists or will exist in the world to prevent it. That
is the first thing that we want to assert; reassert and proclaim in opening
our second congress. [prolonged applause]

We hope that this report from the Central Committee to the Second PCC
Congress will not take too long although in any event it unfortunately will
be and must be long. That is why we will try to be as concise as possible
in presenting the balance of the period between 1975 and 1980, what we
propose to do and the general outlines of our future national and
international policies.

We must begin by saying that in terms of exact figures and dimensions of
material production approved in the first congress, the economic plan could
not be fulfilled. As early as 28 September 1976 we explained to the nation
that in view of the drastic fall in sugar prices, world inflation, the
deterioration of trade relations and the aggravation of the international
economic crisis, the economic goals set for the 5-year period could not be
fulfilled. We told the people the truth with all frankness. We did not
achieve the 6-percent annual growth rate we had intended but we achieved
twothirds of that goal.

We cannot in the least disregard the efforts of our working people and our
party's militants and their extraordinary achievements in the hard and
difficult years that have elapsed from 1975 and 1980. It must be recalled
that many capitalist countries--developed and with greater resources--were
forced to reduce their rate of growth, produce below the level of previous
years and see their inflation, unemployment and economic and social crisis
grow at an astonishing rate. We, a socialist country with an underdeveloped
economy, have advanced in material production and achieved considerable
success in the social sphere during this 5-year period.

The whole experience of this period has been considered in the
preparation--with the most realistic criteria possible and on the basis of
sure indexes--of the economic directives for the second 5-year period, to
overfulfill and not to underfulfill--that is the basic idea, to commit the
party to the attainable and not the unattainable, it is a question of
responsibility, honor and prestige. It will in no way exonerate us from the
duty to do our utmost. We would not be revolutionary or honest if we acted
in any other way.

The present 1976-80 5-year period which is about to end has been one of
extraordinary progress in the organization of our economy, in the struggle
to create the conditions for a more efficient use of our productive
resources and also of significant achievements in our economic development
and in the aims to further meet the needs of our people, although it has
been a period full of many difficulties of an objective nature, both
internally and externally, which have prevented us from achieving all what
we had set out to do.

When we referred to the prospects for the present 5-year period in our
report to the first party congress, we warned that our sugar, with
remunerative and satisfactory prices guaranteed by the Soviet Union and
other socialist countries, would not enjoy the same situation in the
capitalist area and we noted that it was impossible to make definite
predictions concerning the way in which our convertible currency income
from our main export would evolve. During the first 4 years in the present
5-year period, sugar prices averaged some $0.09 per pound, that is, some
$200 per ton--approximatedly 55 percent of the world average of the cost of
production. This meant a plunge from the levels that they had reached in
the last 2 years of the previous 5-year period when they had averaged $0.30
per pound in 1974 and slightly over $0.21 in 1975, having jumped to $0.63
at certain times.

In contrast with the abrupt drop of the prices of our main export, the
prices of our country's imports from the world market continued to climb,
in keeping with the uncurbed inflation presently affecting the capitalist
world. In 1980 alone, the last year of the 5-year period, sugar prices have
gone up but this has not compensated for the first 4 years. This has meant
that our trade relations with the capitalist area, the so-called exchange
terms, have been reduced by 53 percent between 1975 and 1979. This meant
that even with the same physical volume of exports, we have not been able
to acquire as many products as we did in 1971-75 on the average.

In these years of capitalist crisis, interest rates on the external debt
and the credits we have obtained for the purchase of equipment, complete
plants and other goods on the world market have risen extraordinarily.
Likewise, freight and rental rates for the ships we must hire to transport
our goods have gone up. Added to these difficulties of an external nature
were the presence in Cuba of diseases which considerably affected our
agricultural-livestock economy. The sugarcane rust that damaged one-third
of our crops significantly reduced our sugar production potential in 1980.
The blue mold has affected our tobacco crops for 2 years running, first by
25 percent and in the past year almost 90 percent. In addition to these
plagues, we had African swine fever in two of the eastern provinces during
the first months of this year. Our rapid response to natural calamities
which, oddly, occurred simultaneously made it possible for us to control
them in a short time with all efficacy.

Despite all the aforementioned, despite the fact that at home we were
involved in a gamut of institutional and organizational transformations of
a diversity, complexity, depth and magnitude perhaps never before
undertaken by our revolution, we have achieved an acceptable and positive
economic growth rate if we take into account the situation the whole world
is experiencing and the conditions under which underdeveloped,
non-oil-exporting countries are laboring.

The average annual growth of the overall social product in these 5 years at
constant prices has been 4 percent. It must be pointed out that we not only
have obtained this rate of growth, but that we have also achieved
improvements in our efficiency in various areas. Work productivity has
grown at a rate of 3.4 percent a year and wage expenditures per peso of
gross production have been reduced about 2 cents. Likewise, according to
preliminary figures, material consumption--the largest component of
production consumption--has also been relatively reduced. This reflects
greater efficiency in the utilization of raw materials, energy and fuel,
although we are far from achieving the efficiency we should and can
achieve.

Considerable initial effort has been made in these years to increase our
exports and to replace imports, especially those from the capitalist
market. The growth of exports in this 5-year period with respect to the
previous one has been higher than the growth of imports. The changes in the
amounts and structure of our foreign trade, determined by our trade with
the CEMA countries, has made it possible to counter to a large extent the
harmful effects that the constant fluctuations of world prices and the
spurring action of unequal trade, manifest in relations with developed
capitalist countries, persistently exert on the economy of the country as
on all underdeveloped countries.

In the 5-year period just ending, industrialization came to play the
preponderant role in economic development. During these years a greater
integration of the economy was promoted and the country's infrastructre was
further expanded.

Expenditures in the 1976-80 5-year period amounted to 13.2 billion pesos.
This was approximately 75 percent more than in the previous 5-year period,
and three times that of 1966-70. Of the total spent, 35 percent went to
industry--some 4.57 billion pesos--or three times more than the previous
5-year period and 1 billion pesos more than the total spent in that sector
in the 15 years before 1975. Agriculture received 19 percent of
expenditures. This figure contrasts with the previous 5-year periods when
agriculture received approximately 40 percent of resources while
approximately 25 or 30 percent went to industry. This follows from the
agreements reached at the first congress concerning an emphasis on the
industrialization process during the 1976-80 5-year period. Industrial
capacity grew by more than 10 percent and utilization improved in relation
to the previous 5-year period, although it has decreased somewhat in recent
years.

[Castro pauses, remarking, "There is a paragraph missing here. I want to
make this clear." Then he resumes reading the report] Sugar production: In
the five harvests of the present 5-year period sugar production showed a
25-percent increase in relation to that of the past 5-year period. In 1979
the harvest produced 7,992,000 tons. It was the second largest harvest in
our history.

Industrial capacity increased by more than 10 percent as regards the sugar
industry. Utilization improved in relations to the previous 5-year period
although it has decreased somewhat in recent years. The average yield was
84.5 percent, as opposed to 82 percent in the previous period. In 1980,
petroleum consumption was one gallon per each ton of ground sugarcane. In
1976, it was 2.1 [gallons].

Expenditures in the sugar industry amounted to 968 million pesos, double
those of 1966-70, which had been the period of highest expenditures until
1980. More than 40 sugarmills were expanded or renovated. Two new
sugarmills began operations this harvest, one in Pinar del Rio and another
in Camaguey. There are two nearing completion and the construction of two
others was begun in 1980. These are the first sugarmills built in Cuba in
the last 50 years and they were designed by Cuban technicians.
Approximately 60 percent of their equipment was made in Cuba.

The railway system was improved. A total of 195 diesel locomotives were
added. The warehouse network was extended. Four more bulk sugar terminals
were put into operation. This made it possible to increase exports through
this system by 53 percent. Nine of the 10 plants in the yeast program were
completed. A plant to make panels out of bagasse was completed and two more
are under construction.

Agricultural yield in sugarcane areas rose from 49,000 arrobas per
caballeria in 1971 75 to 60,200 in 1976-80, although the rust affected 30
percent of the sugarcane in 1980 and disrupted the rate of the rise which
began in 1973.

Cultivating activities have increased. The area fertilized with nitrogenous
products in 1980 was two and a half times that of 1975. Those treated with
herbicides increased by more than 40 percent. This year the sugarcane has
been given the greatest weeding by hand in the postrevolutionary phase. The
sugarcane area has been broadened by about 10,000 caballerias and the
irrigated area was doubled to some 34,800 caballerias. Ten new varieties
[of sugarcane] were introduced. The sugarcane cultivated with harvester
increased from 25 percent in 1975 to 45 percent in 1980. Average
productivity of the canecutters increased by 53 arrobas. The number of
canecutters was reduced by some 75,000. More than 75 polytechnics with a
registration of 45,000 students currently are tied to the sugar industry.
Of those, 26 were built in this 5-year period.

Sugar industry-related courses are being taught in four universities. The
national center for training sugar industry workers was built in this
5-year period. During 1980, the sugar industry and sugarcane agriculture
were integrated and work on the organization of four agroindustrial
complexes already is underway. A number of measures were adopted this year
aimed at bolstering this important branch of the economy.

Weekly timeoff has been established and night differential payment is being
paid in the industry. Wages of workers in sugarmills and sugarcane
enterprises have been increased by 15 percent. Seniority payment to the
industry workers and harvesters' operators has been implemented. Wages of
agricultural workers have been improved. Continued work in harvest tasks
and fulfillment of quality standards are being rewarded.

A program to stimulate sugar industry workers will make it possible for
them to acquire certain items of great demand. Special work clothes have
been designed for the various harvest activities, and the quality of
various work tools has been improved. This year the industry was reinforced
with 541 university students from the final phases of different
specialties. A reserve of equipment and essential tools for solving the
problems emerging in the midst of the harvest has been created.

Sugar production will continue to be the pillar of the economy and should
attain a level of optimum efficiency. The supply of sugarcane and the
industrial capacities will have to be expanded for the 150 days of harvest
at all sugarmills. Loss of operational time must be diminished. The
recovery rate must be improved. The refining capacities must be increased
and the efficiency of existing ones must be improved. Manufacture of sugar
industry machinery must be further developed, as well as the byproducts
industry. We must struggle to raise the level of yields in sugarcane
agriculture and reduce impurities. All types of cultivation improvements
must be applied and weeding must be improved. Better use of machinery in
cultivation, planting and cutting must be attained. Work productivity must
be increased and the number of millionaire brigades [cutting one million
arrobas of sugarcane] multiplied. The number of agroindustrial complexes
must be gradually developed. Special attention must be given to social
problems to improve the quality of services and living conditions of sugar
industry communities. In short, organization must be improved and better
efficiency achieved.

Livestock-agricultural production, including that of sugarcane, grew at a
3.5 percent annual rate despite having been affected by diseases and
adverse weather.

The agricultural area was extended by clearing more than 850,000 hectares.
Damming capacity was increased by 2.6 billion cubic meters and the
irrigated surface surpassed the 44,700-caballeria mark to more than 63,300
in 1980. The preparation of state land has been totally mechanized, and
progress has been made in the mechanization of vegetables.

While there were 54,000 tractors in 1975, now we have 60,000. In 1975, the
total amount of fertilizer used was 950,000 tons, now it amounts to
1,574,000 tons. The use of pesticides went from 7,400 tons in 1975 to more
than 11,000 in 1980, and herbicides from 11,500 tons to more than 16,000.
More than 1,000 construction projects were completed, among them 555 dairy
farms for 109,000 cows, 95 breeding centers for 73,000 calves, fattening
farms for 160,000 hogs and 61 buildings for poultry.

Production of tubers was about 45 million quintals from 1971 to 1975 and
increased to more than 90 million from 1976 to 1980. The production of
vegetables in the current 5-year period was 30 percent higher than that of
the previous period. The amount of planting area for rice decreased by 20
percent and the yield per caballeria increased by 44 percent, increasing
the total production. The tobacco crop decreased as a result of blue mold
disease which seriously affected exports. The production of citrus fruits
grew by 60 percent compared to the previous 5-year period and amounted to
more than 400,000 tons in 1980, of which approximately 200,000 were
exported. Seven packinghouses were built and the refrigerating capacities
and shipping houses were expanded.

The recovery of the coffee and cacao plantations was initiated. Efforts are
being made to improve the plantations. More than 2,000 caballerias of
coffee have been planted. The prices for gathering centers were increased
by 34 percent and their workers' wages rose by 20 percent. A program of
socioeconomic reforms has begun in the producing areas. The last coffee
crop amounted to 24,000 tons. The number of head of cattle diminished by 7
percent, mainly due to a 20-percent reduction in the peasant sector.
Nevertheless, 55 percent of the herds now are dairy cows. The varieties of
pasture land have been improved. The production of hay and fodder has been
doubled. Numerous plants for bagasse and molasses have been completed.

Some 2.4 billion liters of fresh milk were produced in the previous 5-year
period and more than 3.7 billion have been produced in the current period,
a 54 percent increase. Pork increased from 140,000 tons from 1971 to 1975
to 200,000 in the 1976-80 period. Poultry meat production was virtually
doubled in this 5-year period. Egg production in 1980 amounts to more than
2.1 billion, 300 million more than in 1975. The average egglaying rate per
hen is 240, more than 4 higher than the 1975 rate.

Some 300 million trees were planted and 340,000 hectares were prepared for
forestry production. During the 5-year period, more than 5,600 university
students and 15,000 middle level technicians in livestock-agricultural
specialties were graduated. Agriculture will develop through substantial
improvement of yields, using quality seeds, applying appropriate
agricultural technology and increasing the irrigated areas, improving
animal feed and sanitary controls of herds, increasing the number of dairy
cows, improving the birth rate and reducing the mortality rate of calves,
increasing the size of the state's and peasants' herds, applying work norms
which will guarantee good use of working hours and implementing the system
of payment according to completed fields.

Reforestation must continue and forest and animal protection measures must
be augmented.

Basic industry production grew at a 5 percent annual rate. Installed
capacity in the electrical industry increased by 1,069 megawatts, which
almost doubled that of 1975. Electricity generation grew by 8.7 percent a
year, and fuel consumption dropped from 319 grams per kilowatt hour in 1975
to 285 in 1980.

The number of houses with electricity rose from slightly over 70 percent in
1975 to 74 percent in 1980. Per capita consumption of electricity went from
705 kilowatt-hours in 1975 to 1,028 in 1980. Expenditures in the electrical
industry grew to 500 million pesos; 11,900 km of lines were laid out and
the interconnection of the system with 220,000-volt lines has been
concluded. However, high demand is still not adequately met because
difficulties persist in the transmission and distribution installations, in
the operation of the units, and in the system as a whole, aggravated by the
excessive demand for electricity. We must develop a strong campaign and
take the measures to reduce this excessive demand. We have decided to
increase electricity rates for the state sector where the installation of
special meters has been initiated. A new rate for the population was
implemented to encourage people to conserve electricity.

In terms of fuel, 5.5 million more tons of petroleum were processed than in
the 1971-75 5-year period. Kerosene consumption went up, although there
have been difficulties in the distribution. A new factory was completed for
the production of ranges. Exploration for petroleum and gas continued, but
the deposits found so far are still of little significance. Fertilizer
production increased to 4.5 million tons, as compared to 3.3 million in the
previous 5-year period. Nitrogen-based fertilizers production tripled. the
construction of a complex with a capacity to produce 60,000 tons of paper
was begun in Sancti Spiritus. The pulp byproduct will be used by other
paper plants. Construction of a cardboard plant in Havana has begun. Plants
producing chlorine, industrial gases, glass containers, recapped tires,
industrial rubber products and agricultural tires were completed.

Geological investigation spread from 5 percent to 15 percent of the
territory. Nickel production levels were the same as in 1971-75. The
rehabilitation of the Nicaro and Moa [nickel plants] and the installation
of two new plants with a 30,000-ton capacity per year are underway. The
ironwork industry grew by 6.7 percent per year. More than 1,000 sugarcane
combines have been completed. Steel smelting rose from 1.1 million tons in
the previous 5-year period to more than 1.5 million tons in the present
one. Production of corrugated steel grew by 60 percent. Bus manufacturing,
which amounted to approximately 5,500 units in the previous 5-year period,
rose to 9,500 units in these past 5 years. Refrigerator production
increased from some 182,000 to 210,000 units. Radio production rose 223,000
to more than 670,000 and television sets, from 25,600 to almost 225,000.
Production of electrical wire and cables, storage batteries and
agricultural tools has increased. Spare parts production levels almost
doubled those of the previous 5-year period. Expenditures amounting to 440
million pesos were made in this area. Among other projects, a rolling mill
was completed in Antillana de Acero. The sugarcane combines factory, one
for storage batteries, two plants for irrigation elements, one for wheels
and a stainless steel foundry were all completed. More than 5,000 workers
take courses in the factories themselves, from which 3,389 already have
graduated. In 1980, more than 12 million pesos worth of ironwork products
were exported.

There is work to be done in future years to conserve energy, increase the
utilization of installed capacity, strengthen maintenance and raise
technological and operational discipline in the plants, struggle to reduce
possible power outages, improve fuel distribution, increase effectiveness
in putting the new projects into operation, considerably increase the
production of spare parts and increase the production of equipment for
entire plants and production lines.

Seven billion pesos worth of construction was carried out in this 5-year
period. This was some 2.8 billion more than in 1971-75. While 450 million
pesos worth of industrial construction was carried out in the previous
5-year period, more than 1.35 billion was carried out in this 5-year
period. More than 300 projects were completed, although there have been
delays in implementing some projects.

Hydraulic works increased by more than 29 percent. Work has been done on
the construction of 27 dams, of which 24 were completed. Work has also been
done on the construction of minidams. On almost 300 hectares, 141 km of
master canals and irrigation systems were built, part of which will be put
into operation during the coming year. More than 1,000
agricultural-livestock works have been completed. Also, 836 km of
embankments for railroad tracks were built, as well as 7,800 km of
expressways, highways and roads. Thousands of kilometers of roads including
334 km of the national expressway, have been paved. Work has been carried
out in more than 25 airports and airstrips. Maritime workers were double
those of the 1971-75 5-year period. Educational capacity has been
increased. While facilities for some 180,000 intermediate-level students
had been created in the previous 5-year period, facilities for more than
400,000 were created in this 5-year period. Twenty-four child care centers
were built in 1971-75; some 200 were completed in 1976-80. Hospital
services grew by 3,000 beds with the construction of four hospitals and the
expansion of three. Seventy more health facilities were built.

Twenty-two new hotels were built for the tourism industry. The housing
program has been one of the most affected. Some 83,000 houses were built by
the Ministry of Construction, a similar number to those built in the
previous 5-year period.

Hydrology works grew by 60 percent, and 3,360 km of aqueducts and 335 km of
sewers were built. Construction abroad in 10 countries rose to 125 million
pesos. The current capacity of the materials industry is practically double
that in 1975, which has made it possible to increase sales to the
population.

Among the new factories there are two cement factories with a joint
capacity of almost 3 million tons, 33 sand and gravel plants, two
asbestos-cement factories and three for prestressed concrete pipes, two
factories for health services equipment and two for glazed tiles.

Cement production in the previous 5-year period totaled 8.2 tons;
production in this 5-year period was 13.4 million tons.

Work will have to be done in projects to reduce the consumption of
materials, especially imported materials. The volume of ongoing
construction must be reduced. We must fight to raise quality and
conservation and reduce the time spent in the planning, execution and
putting into operation of works.

Transportation activity grew by 31 percent. The total circulation of goods
in the country's ports in 1980 amounted to more than 35 million tons--the
highest of all times--for a 35 percent growth in relation to 1975. Of that
total, foreign trade accounted for 25 million, and coastal trade for 10
million. The national fleet acquired 23 oceangoing ships with a 550,000 ton
deadweight capacity in 1975; today we have 815,000. Coastal transportation
grew by 10 percent [presumably per year] and went from 87,000 tons of
deadweight in 1975 to 128,000 in 1980. Total port and dry goods
manipulation grew from an average of 553,000 tons a month in 1975 to
638,000 in 1980. Eighty million pesos were expended in maritime works for
this purpose. More than 300,000 square meters of warehouses were built and
74 cold storage plants were put into operation. Railway transportation of
cargo increased by 26 percent; transportation of passengers reached 20
million in 1980 for an 82 percent growth in relation to 1975. One hundred
two heavy locomotives and 1,870 freight and passenger cars were rebuilt.
Trucking went from 7.7 million tons in 1975 to some 15 million in 1980 for
an annual growth rate of almost 14 percent. This service acquired 3,987
trucks. In the past 3 years, delays in the loading and unloading of ships,
rail cars and trucks linked to port operations increased. This situation
has significantly improved in the second half of this year as a result of
the organization and mobilization effort carried out. Bus transportation
grew in 1980 by 17 percent in relation to 1975.

The service acquired 10,000 units in the present 5-year period. Of these,
more than 9,000 were locally manufactured. In 1980, Havana has 2,400
vehicles. In 1975, the city had 1,400. Taxi services have not experienced
improvements in this 5-year period. The number of passengers in
international flights tripled, having reached 194,000 in 1980. Seven
airplanes were added. The Havana and Camaguey airports were remodeled and
the Lab Tunas, Bayamo and Manzanillo airports were put into operation.

There was great growth in communications. All provincial capitals, in
addition to other cities, can now dial Havana directly. A modern microwave
system and radio and television transmitters were installed. Medium wave
transmissions increased. They now cover more than 90 percent of the
country. Telex service was expanded, 430 km of coaxial cable were
installed, international communications were expanded and modernized and
new satellite communications channels were set up.

Timetables have not been observed and there has been poor service and
violations of operation and maintenance standards in railway
transportation. Critical situations have occurred in bus services in
Havana, which experienced serious difficulties for several years in the
current 5-year period. The adoption of a series of measures has made it
possible to make 25,000 trips a day in the last few months of 1980 and the
figure is now 29,000, an increase of more than 50 percent in relation to
the previous situation. Difficulties encountered in transportation must be
overcome since they have made it impossible to make the best use of
available resources or to consolidate the effort made in terms of
expenditures. Special attention will be necessary to improve efficiency in
the service.

In the food industry, production of staple items rose by 14 percent.
Production of pasteurized milk, cheese, butter, yogurt, ice cream, flour,
pasta and fruit and vegetable preserves has increased. Production of
alcoholic beverages grew by 33 percent, and of beer by 15 percent.
Production of soda pop in 1980 was 20 percent higher than in previous
years. In the meat industry, new types of products have been introduced.
This branch encountered difficulties during the 5-year period because of
the lack of raw materials and containers and encountered delays in the
construction of some new facilities. More than 360 million pesos were spent
and two flour mills were completed, as well as six bakeries, four candy
factories, six soda pop plants and three canning factories. Several oatmeal
and cornflakes plants, two animal meal plants, one glucose factory, and
eight pasteurizing plants were also completed. Evaporated milk facilities
underwent expansion. Sixteen ice cream plants and the citrus complex on the
Isle of Youth were also completed. The quality and appearance of products
must be improved, choice must be expanded, optimal use must be made of raw
materials, containers must be diversified and their collection increased,
and we must work for the integral development of the citrus fruit industry.

Light industry grew by 23 percent. The production of textiles amounted to
more than 750 million square meters. During the previous 5-year period it
was 600 million. In the area of outer garments, 240 million units were
produced, compared to 197 million during the 1971-75 period. In 1980, 21
million pairs of shoes were produced, which is still a relatively low
number. In the 1976-1980 period, the production of laundry soap decreased
in comparison to the previous 5-year period. However, the production of
detergent increased by 19 percent. Toothpaste production increased by 16
percent. The production of corrugated cardboard boxes in 1980 was 60
percent higher than that of 1975. More than 400 million pesos were invested
in this industry. the textile complex, which will produce 60 million square
meters, has begun operating in Villa Clara. In 1980, a towel factory which
can produce 10 million units and a textile mill which can produce 20
million square meters of fabric for cotton slacks began operating.

Three complexes for the production of school furniture began operating,
which almost doubled production. Two new factories for the production of
corrugated cardboard boxes began operating, increasing production capacity
by 120 million.

Production has been affected by the lack of raw materials, by deterioration
of the industry [presumably the equipment], by delayed investments, and by
the failure to make demands in the area of quality control. The design and
assortment of these items must be improved and diversified. Special
attention will have to be paid to work clothes.

In the fishing industry, the final count was some 930,000 tons, which
represents a 39-percent increase over the last 5-year period. In 1978, a
catch of 213,000 tons was recorded, the highest in our history. The
establishment of the 200-mile territorial limit and the cancellation of
some fishing agreements limited the possibilities of our fleet on the high
seas. During the period from 1976 to 1980, fishing exports amounted to more
than 400 million pesos, more than double that of the previous period. More
than 600 million pesos were invested and 21 large trawlers, 4 refrigerated
transport vessels and a vessel for transporting fuel were added to the
oceangoing fleet. The catch capacity of the fleets, especially that of the
oceangoing fleet, must be increased. We must take maximum advantage of the
continental shelf resources; we must increase the fish catch, processing
and collection and improve the supply of fish to the population.

Our foreign trade during this past 5-year period was basically
characterized by an improvement in trading terms with socialist countries
and by a decrease in our imports from capitalist countries. During the
5-year period a series of measures were adopted aimed at diminishing as
much as possible the negative effects of the worldwide economic crisis in
our economy. Contributing to this in a decisive way were the agreements
reached within the framework of CEMA in the area of credits, prices,
coordination of 5-year plans and procurement of raw materials and fuels,
among others. Imports in convertible currency were reduced to an absolute
minimum and an effort was made, at the same time, to transfer purchases to
the socialist countries, which had a favorable effect. In this process, the
share of trade with CEMA countries in overall trade, which amounted to 56
percent in 1975, amounted to 78 percent in 1979. For the Soviet Union it
went from 48 percent to 67 percent. Foreign trade transactions became more
numerous, especially the development of a mentality geared to exports,
based on an increase in exports of traditional exports and the addition of
many new items, although the effect of the latter on the overall total is
still not significant. During this period, trade with developing countries
increased, although the amount of this trade is still modest. In the future
we must increase exports and guarantee expanded markets and efficient
management, thereby improving the quality of products and achieving the
adequate incorporation of these goals into our internal economy. We must
study in depth the possibilities of adding new products to our market from
the socialist area and promote trade relations with developing countries.

International cooperation continued to develop during the 5-year period.
Within the framework of CEMA, we have been able to promote, in particular,
programs for developing the production of sugar, citrus fruits, nickel,
sugar industry machinery, and computer equipment and programs in the area
of geological prospecting and the development of science and technology.
Cuba has joined the banking system of the council and is participating in
various multilateral programs in other member countries. In the bilateral
area, the joint commissions are systematically engaged in the
implementation of the intergovernmental agreements for carrying out
investment projects and other means of economic, scientific and technical
cooperation.

During the period, we received soft credits and donations from
international governments and organizations. The main beneficiaries of
these were in the areas of education and health. In 1980 we received
technical assistance from 4,300 experts, primarily from socialist
countries, and 11,000 Cubans are rendering such assistance to more than 30
developing countries.

During this 5-year period, we purchased major industrial plants by means of
compensation transactions whereby the purchase cost is amortized with part
of the production. During the next few years, we will greatly strengthen
all forms of multilateral and bilateral cooperation and cooperation with
international organizations; we will promote new methods of financing; we
will work to improve the process of contracting for and delivering supplies
for entire plants; we will take advantage of foreign technical assistance;
and we will continue to give our aid to developing countries.

Scientific and technical activity has been carried out at an annual cost of
80 million pesos with the participation of close to 23,000 workers, of whom
5,300 are university graduates. Among the most important results have been
the selection of new sugarcane varieties, the acquisition of new pasture
land, the development of machinery for the sugar industry, the development
of technology which makes it possible to recover more nickel and cobalt,
and the development of electronic and computer equipment.

The work carried out to eradicate African swine fever was a success. The
National Animal Health Center was inaugurated.

Particularly relevant was the research program of the joint Soviet-Cuban
space flight.

The work to establish the national system of standardization, methodology
and quality control was begun, and more than 6,000 standards were
established.

We will begin building a nuclear research center. We will have to work on
the use of solar energy and of other energy sources, on the protection of
the environment and on the rational use of natural resources, as well as on
the plan to develop science and technology approved jointly with the CEMA
countries. In 1980, sales to the population increased by about 20 percent
compared to 1975, but the structure of these sales still does not meet
needs entirely. In the area of essential foodstuffs, basic levels were
maintained for the entire population. Major increases were achieved in the
distribution of tubers, which was 59 percent higher in 1980 than in 1975.
Eggs, yogurt, butter and other products are not rationed. Various canned
goods, cheese, milk and other products are purchased on the parallel
market. Difficulties were encountered in the distribution of coffee, rice
and cornmeal. This year the free peasant market began operating. There was
an increase in the number of those benefiting from socialist food
distribution through child care centers and workers and school dining
halls. In 1980 the average daily diet contains 2,866 calories and 74.5
grams of protein, which is 244 calories and 3.1 grams higher than in 1975.
The distribution of durable consumer goods registered a considerable
increase, which was made possible by the increase in the population's
purchasing power, by the development of the country's electrification
program, by the increase in national production, and by imports from
socialist countries, primarily the Soviet Union.

During the previous 5-year period some 460,000 television sets, 160,000
refrigerators, 890,000 radios, 82,000 washers and 28,000 fans were
distributed. During the current 5-year period, 770,000 television sets,
420,000 refrigerators, 1,350,000 radios, 465,000 washers and more than
400,000 fans were distributed. This means that between 1975 and 1980, for
every 100 homes that have electricity. the ratios increased from 33 to 74
television sets, from 15 to 38 refrigerators, and from 6 to 34 washers.
With regard to radios, in 1975 there were 42 per 100 homes, and in 1980
there were 105 per 100 homes--in other words, a little more than one radio
per family unit.

There was an improvement in the distribution of industrial products for
personal use, such as outer garments for men and women, some hardware
items, certain personal items and cleaning and hygiene items. The supply of
shoes was inadequate.

Advances have been made in the rendering of personal services, although
their quality has not been stable. With regard to the repair of household
appliances, material facilities have not kept pace with the increased
distribution. During the 5-year period the volume of repairs and
maintenance work on dwellings increased. Although it is not adequate, it
amounted to 91 million pesos. In addition, during the last 2 years of the
5-year period, sales of construction materials to the population have
increased.

We must improve workers dining halls, both with regard to supplies--which
were of necessity affected during the 5-year period now coming to a
close--as well as with regard to the quality and the preparation of the
food and the choices available to the workers.

The growth in the parallel market and in unrationed products should not
affect the stipulated consumption. The marketing of uncontrolled products
and of those produced by local industries must be promoted, and we must
increase sales of construction material to the population and raise the
level of housing construction and maintenance. We must improve services in
general, improving quality, hygiene and dealings with clients. Health
services have increased and improved during the 5-year period. Four
hospitals and three expansions were completed; and 3,000 hospital beds were
added. In 1980 there is a ratio of 4.9 beds per 1,000 inhabitants. Fifty
polyclinics were completed. Regarding new construction and renovations, 25
dental clinics, 17 homes for the elderly and 12 homes for the physically
handicapped began operating. Medical visits per inhabitant rose from 4.1 in
1975 to 4.6 in 1980, and dental visits rose from 0.8 to 1. Infant mortality
in infants under 1 year of age fell from 27.3 per 1,000 live births in 1975
to 19.3 in 1979. In the 1 to 4 age group it fell by 10 percent. Maternal
mortality fell from 68.4 per 100,000 live births to 47.4 in 1979. Life
expectancy at birth is more than 74 years for women, and more than 71 years
for men and almost 73 years for both sexes, while at the end of the last
5-year period it was 70 years [applause]. These figures compare favorably
with those of the most developed countries.

Four thousand six hundred and eighty-eight doctors have graduated; there is
1 doctor for every 626 inhabitants, while in 1975 there was 1 for every
1,000.

One thousand fifty-five dentists graduated, for a ratio of 1 for every
2,600 inhabitants; 8,870 mid-level technicians and 12,641 nurses also
graduated. Degrees in nursing began to be awarded. The building of higher
institutes of medical sciences was promoted. Medical enrollment rose from
5,973 in 1975 to almost 14,000 in this period. In dentistry, enrollment
rose from 862 to more than 2,000. Eight health polytechnical schools were
inaugurated and enrollment rose from 13,500 students in 1975 to 19,500 in
1980. The Institute for Health Development was created and the work of the
Tropical Medicine Institute was reactivated. This institute is currently
carrying out an extremely important and useful task.

Inadequate treatment at hospitals and polyclinics prompted complaints from
the population. In recent years and especially in 1950, this situation has
been improved by adopting various solutions, including the purchase of
additional medical equipment worth several million pesos. Nursing personnel
have received encouragement in their work. The value of the production of
medications increased from 108 million pesos in 1975 to some 137.3 million
in 1980, which covers 81 percent of national consumption. A semisynthetic
antibiotics plant and an optical complex are currently being completed, and
other investments are being made and planned.

Public health expenditures in 1980 amounted to 445 million pesos, 22 times
the amount spent yearly before the revolution. More than 2,500 health
workers are providing cooperation to 27 countries. We will continue to
improve the quality of medical assistance. We must improve the way in which
patients are treated, providing them and their relatives with humane and
solidary treatment, and we must incorporate all polyclinics into the
program for providing medical assistance to the community. We must optimize
the use of existing facilities, improve maintenance, implement and demand
compliance with sanitation legislation and carry out a comprehensive
educational program.

Educational levels have continued to improve. During the period, 1,293,000
sixth grade students graduated from the national education system, almost
twice the number graduating during the previous 5-year period; 575,000
students graduated from secondary school, or 7.2 times as many as during
the previous period; 105,000 students graduated from preuniversity schools,
or 4.4 times as many during the previous period; 194,000 skilled workers
and mid-level technicians graduated, or 5 times as many as during the
previous period.

There were 62,700 higher education graduates, or 3 times as many as during
the previous period; 77,900 primary school teachers graduated, or 3.6 times
as many as in the previous period. Virtually all the students who graduated
from sixth grade in the 1979-1980 school year continued their studies.

Twenty-five thousand seven hundred secondary school teachers and 4,800
physical education teachers graduated; 115,000 adults graduated from
secondary school; and 41,000 adults graduated from worker-peasant
facilities. The Manuel Ascunce Domenech Teacher Training School has already
graduated 9,597 teachers.

Enrollment in secondary education has doubled. In Cuba there are close to
16,000 foreigners holding scholarships. Currently, for every 2.83
inhabitants, there is 1 going to school.

More than 970 schools were built at a cost of some 800 million pesos, with
a capacity of more than 550,000 students. This includes, among others, 258
secondary schools and preuniversity institutes in the field, 251 urban
secondary schools, 150 primary schools, 63 polytechnical schools, 3 schools
for Camilitos [students at Camilo Cienfuegos military schools], 4
vocational schools, 6 schools for child care center teachers, and 5
teacher-training schools. Equipment was purchased for 877 laboratories and
workshops.

There are 216,900 professors, 51,400 more than when the 5-year period
began. All primary school teachers currently teaching hold degrees and
152,407 students are receiving teacher training, of whom 103,131 are
workers.

The Ministry of Higher Education was created. There is a network of 39
centers.

From an enrollment of 84,000 students in 1975, we jumped to an enrollment
of more than 200,000 in 1980, including some 30,000 students in self-study
courses, most of them workers. There were more than 20,000 higher education
graduates in the 1979-80 school year, a figure which is higher than the
overall university enrollment before the triumph of the revolution.

The child care centers were integrated into the educational system.
Installed capacity rose from 47,000 to 87,000 seats. In 1975 hardly more
than 2 percent of child care center teachers held degrees; currently 20
percent of these teachers hold degrees. The education budget for 1980
amounted to 1.34 billion pesos, in other words, 137 pesos per inhabitant.
This is 16 times greater than the corresponding amount for the year before
the triumph of the revolution.

The Che Guevara Internationalist Detachment and the Frank Pais and Augusto
Cesar Sandino primary school teacher contingents are teaching in Angola and
Nicaragua. Overall, more than 3,500 teachers, professors and educational
advisers are rendering internationalist service in 20 countries. [applause]

Our balance sheet in the area of education is encouraging, but there have
been difficulties. Problems have arisen with regard to discipline and to
the care of social and personal property at some schools, especially
boarding schools. We will continue to improve the quality of education and
perfecting the links between study and work. Scientific-technical interest
clubs and vocational activities will continue to be developed. We will
continue to improve the material facilities of schools. We will consolidate
improvements in primary and secondary school education. We must improve the
quality of higher education. We will promote the goal of getting
adolescents, youths and workers to complete the ninth grade. We will
continue to promote adult education, the betterment of women, and technical
and professional schooling. Education will continue to receive priority
among the objectives of our people.

We can derive satisfaction from our achievements in the area of culture. We
have experienced a highly creative atmosphere with regard to this important
aspect of social work. The incorporation of various institutions into the
Ministry of Culture, the work of the UNEAC [National Union of Cuban Writers
and Artists], and the consolidation of the social organizations of young
artists have made it possible to formulate a coherent cultural policy. The
people's cultural councils have been established. These are mechanisms for
social coordination and initiative. The people's power has worked
energetically to provide various basic installations for cultural work in
each municipality. One hundred and seventeen cultural centers are already
operating; more than 86,000 activities have been held. Days and weeks
devoted to cultural activities have been instituted in the municipalities.
The Saturday activities at Cathedral Square [Havana] and the cultural
nights on Heredia Street in Santiago are already meaningful events.

In the development of artistic schooling, we have followed the policy of
establishing vocational art schools; eight are already being built. We have
16 primary schools, 21 secondary schools and the Higher Institute of Art,
with an overall enrollment of more than 5,000 students. The amateur
movement has been consolidated. There are currently some 33,000 groups with
more than 250,000 members. In 1975 there were 18,000 groups with
approximately 200,000 members. Older theatrical groups have stabilized and
new, musical and mobile theater groups have been established.

The inauguration of the national theater was a very important event. The
prestige of the National Ballet of Cuba has grown. The three festivals
organized in our country brought together the most distinguished
international personalities in the field of dance. Cuban music had greater
impact on young people and the population in general. Eight million records
and 2.96 million musical instruments were produced.

The date 20 October was proclaimed the day of Cuban culture. We established
the Center of Marti Studies and the center for researching and developing
Cuban music.

Laws were promulgated on cultural patrimony, national and local monuments,
municipal museums and author's rights. Ninety-one national monuments and 59
local monuments have been declared. The country has 78 museums, more than
40 of which were established during the period. Restoration of the historic
wall of Habana Vieja will be started. Progress has been made in the
organization of the fundamental areas of artistic production. Progress has
been made in the organization of the fundamental areas of artistic and
literary production. It is planned to change the traditional concept of the
plastic arts to a broader social concept where artistic production is
linked to material production.

A total of 5,000 titles were published in more than 200 million copies. The
Juan Marinello Publishing Center in Guantanamo began operations with an
annual potential capacity of 30 million books. There has been a noteworthy
growth in the marketing of books. The average number of books per reader
has increased from 4.1 in 1975 to 6 in 1980. Literature for children has
increased. A total of 489 titles in 29 million copies were published. The
literary shops already have 5,000 members.

The Cuban movie industry produced 36 full length movies, 196 documentaries,
260 news reports and 72 cartoons. Forty-one movie theaters were built. The
color laboratory was put into operation.

The House of the Americas has strengthened its well-deserved international
prestige. The third Carifesta [Caribbean Arts Festival] was held
successfully. Hundreds of Cuban artists have performed in various countries
and we have been visited by hundreds of foreign artists.

Two hundred twenty-three prizes and mentions were won at international
contests. Of particular importance for the country was the Miguel de
Cervantes Saavedra prize awarded to the illustrious Cuban writer, Alejo
Carpentier. [applause]

The process of evaluation of this sector was completed. Methods and
mechanisms have been improved to promote stable work. Free time should be
increasingly better organized. The amateurs movement should continue to be
expanded. Artistic fields should be introduced in the education system. The
means of cultural information, dissemination and promotion should be used
in an increasingly efficient manner. An active and enriching presence of
the arts in material production should be facilitated.

Our sports movement continued to advance during this 5-year period. The
number of participants in sports activities doubled, while participation in
recreational and physical fitness activities also increased. Ninety-four
sports installations were built. Seven schools for athletic improvement and
five for the training of specialists were inaugurated. Forty-eight thousand
mid-level technicians were graduated, as well as the first 663 at the
higher level. Sports industry production was in excess of 11 million pesos
in 1980.

We maintained our first place in the Central American games and second
place in the Pan-American games. In both, we won the highest number of
titles in our history in such events. In the Olympic games, we moved from
14th place in 1972 to eighth place in 1976, and to fourth place in Moscow
in 1980, although some capitalist sports powers did not attend the latter.

Several Cubans hold Olympic and world records: We are world champions in
boxing, baseball and women's volleyball; and we have had meritorious
performances in other sports, some of which practically were not known here
10 years ago, such as handball and field hockey. Nevertheless, we have not
had the replacements in various sports capable of improving or at least
maintaining the positions attained. This was shown at the Moscow games, in
which we participated with a marked lack of new athletes, and where the
results should have been better in some events. This essentially is due to
the fact that a centralized and really massive work method was not
developed at all times, and because certain spirit of championship
prevailed which led to placing the desire for victory in each
event--regardless of its importance--ahead of the possibility of developing
new athletes.

The critical and objective analysis initiated with regard to these problems
should lead to rectification of mistakes and improvement of correct
methods.

We offer technical assistance in this field to more than 30 countries;
about 200 youths from 14 nations are studying in our sports training
centers.

The use of sports installations should be intensified and the massive
participation of the people should be increased, especially the students,
in sports, recreational and physical fitness activities as one of the most
adequate ways of using free time. At the same time, this guarantees a
strong sports movement.

Tourism accommodation capacities grew to 4,300 rooms--2,800 in new hotels
and 1,500 by the refurbishing of villas. Twenty-two hotels were built, of
which 21 have been inaugurated. Approximately 340,000 foreign tourists
visited the country. This does not include the Cubans living abroad. More
than 100,000 tourists came in 1980, or 2.6 times more than 1975. Some
10,000 Cubans visited the socialist countries. Seven million Cubans toured
within the country. Services such as camping, guided tours and excursions
are being developed. The quality of services should be improved
substantially. Utilization of capacities should be increased and tourism
offers should be diversified and expanded.

Organization of work experienced a certain stagnation in the first years of
this 5-year period, however, 725,000 work standards were established in
1980 and 8 percent more workers are paid according to such standards. A
total of 1.2 million workers already receive pay based on production, and
an additional half million workers have been included in the premium pay
system.

A general wage reform was approved this year which already benefits more
than 1 million workers and, when completely implemented, it will represent
a pay increase of some 670 million pesos annually.

The reform raises the pay of the workers with the lowest income. Its
application depends on improved organization of work and links pay with
productivity. To help cover the new expenditures involved in the wage
reform, a reform of retail prices is anticipated to compensate for a
proportionally smaller share of such expenditures. Other measures will be
adopted, including a greater offer of materials and services to the people.

Women's participation in jobs increased from 27 percent in 1975 to 32
percent in 1980. There are nearly 11,000 youths working and being trained
in various socialist countries. About 20,000 [Cuban] workers are being used
in technical assistance and construction projects overseas.

The government issued a decree on labor rights of internationalist workers.
The law which prohibits the creation of new historic wages [pay rates prior
to the revolution] was approved. It was decided to gradually establish the
system of direct contracting of the labor force. This will be applied in
the Havana provinces later. An occupational health and safety law was
promulgated. The Institutes of Occupational Safety and Occupational
Medicine were created. The social security law was approved. It improves
the services and perfects the social assistance system. The number of
social security beneficiaries increased by more than 150,000 and it now
reaches almost 700,000. To this end, 715 million pesos were assigned in
1980, or 122 million more than in 1975.

In order to recover and strengthen labor discipline, a decree-law was
issued granting authority to administrations to impose and apply
disciplinary actions. Another decree-law was issued concerning the
responsibility and discipline of leaders and officials.

The organization of work should be consolidated. [We must] struggle to
increase productivity, improve the function of standards, complete the
implementation of the wage reform and control its results, promote the
premium pay systems, promote the creation of new useful jobs, be more
precise in the number of graduates from the various specialties in
accordance with requirements of the economy, and work to fulfill the
provisions of occupational health and safety.

An aspect of the economic sector in which we unquestionably have advanced
is in the process of the gradual implementation of the economic management
and planning system to create the mechanisms which help us to be more
efficient, use our resources with better results, and achieve economic
awareness among our political and administrative cadres. Important tasks
have been carried out in economic planning and the plan has begun to
fulfill its role as the leading element in economic activity. There has
been progress in the methodological aspect and in the drafting of annual
and 5-year plans. Moreover, work is being done on development prospects
until the year 2000.

The organization and timetables for drafting the plan have been improved
year after year, and there has been greater participation by the
enterprises and workers in this process. We have incorporated categories
into the plan such as investments, costs, expenditures and profits; work
has been done in the planning by sectors and the necessary organizational
bases have been created for the development of territorial planning.

The establishment and control of the economic contracting system is being
developed, although with difficulties because there has not been total
understanding of the importance of contracts for the fulfillment of the
plan. The process of drafting and approving these regulations has been
slow, and state arbitration organs have been organized on a delayed basis.
These organs are an important link to establish economic discipline.

The State Committee for Statistics was created. The national data
collection network was organized with offices at all the municipalities.
Statistical information systems were developed--national as well as local
ones--in addition to complementary ones. We have tried to eliminate
unauthorized requests for information and duplication.

Classifiers and codifiers for economic activities were prepared. The
inventory and assessment of basic assets were done. Numerous surveys of
great importance for economic activity were conducted. We are struggling to
achieve greater efficiency and quality in tourist services, and we are
working to prepare for the population and housing census to be conducted in
1981.

The State Committee for Finance was created and since 1979 the budget has
been prepared down to the municipal level. The organic law on the state's
budget was approved. Revenues for the budget coming from enterprises and
other sources have been defined. The enterprises draft their financial
plans and apply financial standards. A national accounting system and
amortization rates have been established; and regulations have been issued
on the use of the amortization fund, although we still have work to do on
these latter points.

The banking reorganization was implemented and collections and payments
among the state agencies were reestablished. A cash plan is being drafted
which helps in the planning, control and analysis of the circulation of
cash. A short-term loan system to the enterprises has been established, and
the national bank controls the salaries and investments funds. A savings
bank is being organized to facilitate and encourage the people to save.

The State Committee for Prices was created. Initial work was done to record
and systematize prices and tariffs, and surcharge and discount rates were
applied thereafter so that commercial enterprises and restaurants could
operate under economic estimates.

Regulations were drafted for the planning, estimating and registration of
costs, and as a more important matter, a wholesale price reform was applied
in the drafting of the 1981 plan. At this time work is being done to adjust
retail prices.

The State Committee for Technical and Material Supply was created and this
activity was reorganized throughout the country under more rational bases.
Work has been done to simplify mechanisms in an attempt to make them more
flexible, and [work has been done] to standardize warehouses and preserve
products, as well as on inventory and material consumption where still
there are delays, unfulfillment and lack of discipline.

Work is being done to recover raw materials and other materials and to
eliminate useless inventories. The basic elements are being created to
establish and organize the system of state reserves.

Regarding the organization of work and wages, the basic elements also have
been established to develop the system. Work also has been done on the plan
of incentives which depend on the efficiency of enterprises. The creation
and distribution of funds for prizes and for sociocultural activities have
been implemented in about 200 [enterprises] on an experimental basis. This
system should be expanded to all enterprises during the next 5-year period
for the benefit of the workers and the economy as a whole.

The State Committee for Standardization was created and we are providing
the basic conditions so as to begin certifying the quality of products
in"the next 5-year period.

The first Data Processing Institute was created. Progress has been made in
the organization of networks that did not exist prior to the development of
the already existing ones. Moreover, progress has been made in the use of
data processing centers for collective use which provide services to
various activities in the provinces. Computation equipment is being
gradually furnished to the enterprises. Work is being done to design
automated control systems and, to a lesser extent, for technological
processes and projects.

The training of cadres and leaders in economic activity has been developed
successfully. Some 10,000 economic management cadres have attended the
National Economic Management School--recently converted into an institute
of higher education--and provincial schools. However, about 30 percent of
economic directors and deputy directors of enterprises have not attended
these schools. Therefore, the resources of these schools have been
underutilized.

The training of economic management cadres at the university level has
begun on a regular basis with the 1980-81 school term. Moreover,
graduations from the general education system during the current 5-year
period will include more than 6,000 higher-level technicians, and more than
18,000 mid-level technicians in the various economics specialties.

The organization of the network of enterprises is being improved gradually.
When the system was created there were some 3,500, and currently there are
2,420. Although they have limitations, deficiencies and lack of discipline,
and although it is necessary to eliminate these weaknesses, 95 percent of
the enterprises are applying the basic elements of economic estimate.

The general regulation for enterprises was approved. It establishes the
degree of autonomy and independence they require for their economic work.
Nevertheless, complete implementation of this principle still has not been
achieved. Dissemination of the system has improved this year, although
there still are deficiencies. The basic elements and principal mechanisms
of the economic management and planning system were created during this
5-year period. When we decided to implement this system we were aware that
the road would be a long one before we could hope to obtain results.

We believe, however, that from the beginning our effort has yielded results
of one degree or another. The difficulties encountered were examined at the
two plenums organized by the national implementation committee created by
the congress. The policy followed has been to seek the most appropriate
adaptation of the system to the conditions of each moment and to eliminate
mistakes and deficiencies. During the next 5-year period we will work to
develop and improve to the maximum all mechanisms of the system. And it is
a revolutionary duty and a political duty of everyone--first of all of the
party, of the state's central organs and organizations, enterprises,
workers, mass organizations, economic and administrative cadres and all
leaders of our economy--to struggle consistently and exert their maximum
effort so that we can fulfill the purpose and decision of applying the
system regardless of current deficiencies.

It is one of our duties to determine constantly how we can strengthen and
improve what we are doing so that we can achieve a constant increase in
efficiency in the economic work of the enterprises and of the economy as a
whole.

In the period between the first congress and this second congress, the
revolutionary state has experienced noteworthy progress in institutional
matters. On 24 February 1976, anniversary of the 1895 cry for independence,
our socialist constitution was promulgated. It was approved by 97.7 percent
of the electorate in a plebiscite in which 98 percent of the electorate
went to the polls. It was a popular, clean, free and honest decision.

Throughout 1976 the country's political-administrative division was
substantially changed. Fourteen provinces and a special municipality
directly subordinate to the central government were established. Formerly
there were six provinces. [Also established] were 169 municipalities
replacing the 407 that existed up to that time. The 58 regions that existed
between municipalities and provinces were eliminated.

The new territorial division has helped to bring the leadership levels
closer to the grassroots, thereby facilitating management, organization and
control tasks of the state, party and the various political and mass
organizations. The provinces and municipalities were given a more rational
dimension and this has helped to make an important reduction of
administrative cadres and employees.

This radical transformation, however, generated numerous difficulties
during the entire process of its implementation because it forced the
reorganization of all state, political and mass organizations. This altered
the regular rate of our work for some time.

The creation of people's government organs throughout the country was made
within these new territorial frameworks. The election of delegates and
deputies was organized and held and the corresponding assemblies were
established. It was the most important step taken by our revolution in the
institutionalization process.

By means of the people's government organs, the most appropriate conditions
were created for the exercise of socialist democracy, which is the superior
form of democracy, by institutionally facilitating the participation of the
masses in the government of the society in local as well as in national
affairs.

More than 10,000 delegates to people's assemblies of the 169
municipalities, elected under absolutely democratic procedures and
constantly subjected to the control of the masses, represent our people in
the local governments. They exercise the power to name and replace
administrative officials and leaders at municipal activities.

They also make the fundamental decisions on local matters. They also elect,
mostly within their own group, the delegates who form the provincial
assemblies and the deputies to the National Assembly--the supreme organ of
the state.

The local people's government organs are responsible for the principal
services activities relating to education, public health, sports, culture,
recreation, community services and for the collection of
agricultural-livestock products, the retail trade, food for-the people,
repair services, local transportation and numerous industrial production
activities.

These basic institutions of our state have undertaken an intensive
economic, administrative and socioeducational effort, giving significant
assistance to the government's central organs in such important activities
as the sugar harvest, tobacco harvest and investments control. They also
are paying increasingly efficient attention to activities under their
control.

The delegates have met regularly with their electorate. The assemblies and
their executive organs also have held sessions regularly. The delegates to
these assemblies have done unselfish and outstanding work in their
districts as representatives of the people. They have examined and tried to
find solutions to problems raised by the people, although the best response
to problems of the people has not always been possible.

The achievements reached by the people's government can be described as a
victory of our people and their socialist revolution. They have confirmed
the correctness of the decisions adopted by first congress for
establishment of the people's government.

Along with the advances made, however, important aspects of the functions
of these institutions should be improved. In the next 5-year period, we
should work hard to strengthen even more the prestige and authority of our
representative institutions and raise the role of delegates and deputies by
improving the support they should receive so that they can perform their
functions with greater quality.

We should struggle to eliminate the causes which in many cases have turned
the rendering-of-accounts meetings into a merely formal activity. We should
strengthen the work of local administrations; improve the functions of
delegates, assemblies, executive committees and administrative
directorates; maintain a constant struggle against the tendency toward
bureaucratic distortions, the lack of agility in the solution of problems,
paperwork, negligence and indifference to the problems and needs of the
people.

The local people's government organs should intensify their demands on
administrative dependencies, enterprises and units so that these can work
with greater efficiency in providing adequate solutions to the problems
raised by the people and give satisfactory explanations when they have no
immediate solutions.

In order to conduct government activities according to the constitution and
according to the need to follow a guided and planned economic system, the
central state administration was reorganized in 1976. It is made up of the
Council of Ministers, its executive committee and the central
organizations, which were initially 43 in number and were reduced to 35
this January during a second trimming. State arbitration was instituted
during the same process and new central organizations were created, such as
the state financial, prices, statistics, technical-material supplies, and
normalization committees and the computation institute, all of which play a
major role in the guided and planned economic system.

The central government institutions have been simplified and perfected. We
can work toward the improvement of our central administration with the
objective of making the state administration more effective, less
bureaucratic and more flexible at all levels. We can study with more
technical rigor the organization mechanisms and further spell out the
functions and relations between those institutions and the local people's
government organs.

The judicial and fiscal bodies also were restructured during this phase, so
they would mesh with the new political-administrative division and with the
existence of the people's government organs. Several laws were enacted on
the operation of those bodies. However, despite these changes, important
deficiencies can still be observed in the administration of justice, with
regard to both juridical regulations and their practical application. Those
deficiencies are now being overcome by the Supreme People's Tribunal and
the attorney general's office, but it will also be necessary to review the
legislation concerning the judicial system, as well as to study and more
precisely outline the activities of the Justice Ministry with regard to the
operation of those bodies.

As we said during the main report to the first congress, the force of the
constitution compels us to destroy the legality of the society of the
exploiters and to build our own legality, the socialist legality. To do
that, it is necessary to abolish many anachronistic provisions which were
contained in old laws, codes and regulations belonging to a bourgeois
society and to replace them with socialist juridical norms.

The prolific legislative work carried out by the National Assembly, the
Council of State, the Council of Ministers and its executive committee
during the years following the first congress has been a considerable
contribution to the development of socialist legality in our country. This
work experience suggests the necessity of a legislative plan which
establishes a set of priorities for the promulgation of legal provisions in
line with the demands of our development.

The draft 1981-85 5-year plan has been worked on for more than 2 and 1/2
years. Its main indicators are the economic and social guidelines which
will be considered by this congress. According to the agreements already in
effect with the Soviet Union, the GDR, Bulgaria, Czechoslovakia, Vietnam
and Mongolia on the coordination of plans--and those which are virtually
completed with Romania and in a very advanced stage with Hungary and
Poland--trade with these nations will increase by over 30 percent from the
past 5 years. The amount of credit extended to us will be twice what we
have received during the past 5 years.

These agreements spell out almost 900 export items by name and according to
the amount to be received per year, that is, three times the number listed
in the past 5 years. Furthermore, we have made careful projections of our
relations with the capitalist market, on which our economy is still
somewhat dependent.

In summary, we think the plan has a realistic basis. The plan permits us to
expect a general economic growth averaging about 5 percent per year for the
next 5 years, which will be above the 4 percent achieved during the past 5
years. The plan is marked by a strong exporting tendency and a tendency to
find substitutes for imports in order to try to cut back on foreign
dependence. The export plan contemplates a growth rate higher than that of
the overall social product, while the import plan shows a yearly growth
rate which is below the overall growth rate of our economy.

It is expected that the volume of traditional export products will increase
and that emphasis will continue to be placed on the development of new
export funds. We expect that the specific amount of import funds per peso
of [cada peso] production will be reduced by 15 percent during the next 5
years. [as heard]

The plan seeks to give a greater response to the needs of our people,
placing emphasis on those needs that have not been met and on solving some
economic bottlenecks. Therefore, it is not primarily an investment plan,
although investment is growing between 15 and 20 percent and it includes a
good number of economic development objectives.

The savings rate, that is, the part of the national income which is
earmarked for increasing production and investments, is slightly reduced in
comparison to the past 5 years. We will try to finish the investments which
are underway rather than make new investments and shorten the construction
deadlines and the exploitation of the investment projects. The new
investments will be devoted on a priority basis to productive industry and,
the nonproductive field of housing construction will be emphasized. It is
expected that about 200,000 homes will be finished during the next 5 years,
which is 2.5 times the number of homes built in the past 5 years.

We will work on about 1,200 investments and listed programs, of which we
plan to conclude about 1,000. We are planning to finish about 500
investment projects and industrial programs out of a total of 560. We also
are planning to finish more than 250 school projects, 150 health facilities
and more than 1,000 agricultural facilities. Twice the amount of funds used
from 1976 to 1980 is being earmarked to build storage facilities. Special
attention also is being given to building cold storage facilities and the
construction of loading and unloading centers in order to try to solve what
has been, and still is, a bottleneck in our economy, because we do not have
enough room for the proper storage of our products, which often are damaged
by being left out in the open.

We are also giving priority attention to works aimed at improving internal
transport services in accordance with the resources provided by the ports
program.

We have assigned to maintenance more than twice the resources we assigned
to it this past five years. We are contemplating a substantial increase in
aqueduct and sewage works, giving special attention to the cities of Havana
and Santiago de Cuba.

Regarding overseas construction, there are plans for increasing the works
that have been carried out during the present 5-year plan. The percentage
of workers that will be assigned to this activity will be more than twice
the percentage assigned in 1970.

It is expected that the production of sugar will increase between 20 and 25
percent in comparison with the present 5-year period.

An important investment plan will be put into effect in the sugar industry.
This plan will permit an increase of between 13 and 15 percent in the
grinding of sugar.

In the next 5 years no less than 8 or 9 sugar mills will be built and
another group of sugar mills will be completed in the following 5-year
period. Sugar production must be higher than the national average of 70,000
arrobas per caballeria and in some provinces the production should be
higher than 80 or 90,000 arrobas.

The machine harvesting must be higher than 50 percent. Approximately 20,000
caballerias will be added to the sugar production effort. It is expected
that more than 30 percent of the total area will have irrigation systems.

The number of harvesters and tractors will be increased and their length of
service will be increased. Approximately 50,000 homes will be built to
improve the standard of living of the sugar industry and farmworkers.

The generation of electricity will increase by more than 50 percent and it
is expected that an additional 1,000 or 1,200 megawatts will be available.
The construction of the Jaragua electronuclear powerplant and the
hydroelectric works there will continue. In spite of this, during this
5-year period there will be difficulties during peak-usage hours. However,
it is possible to reduce these difficulties a great deal if energy saving
programs are complied with.

It has been decided to install special meters to register the maximum
consumption of approximately 5,400 state consumers who use 55 percent of
the total energy provided by the national system. By doing this, it will be
possible to set up high rates for these large consumers in order to
discourage consumption during peak-hours.

The new home electricity rate already established should encourage the
people to conserve electricity. To make this easier, the plan has approved
the sale of fluorescent bulbs to the population. These bulbs provide better
light with less electricity. While right now there are only 18 fluorescent
light bulbs for each 100 families, by 1985 it is expected that there will
be 250; that is, there will be 2.5 bulbs for each family.

In the area of fuel, a growth of between 10 and 15 percent is expected. The
increase in grinding capacity will permit important increases in the
national production of oil derivatives, including liquid gas and kerosene
for consumption by the population by the end of the 5-year period. The
production of finished lubricants will also increase.

Investments in this field will be more than two and a half times what they
were during the present 5-year period. Investments will include the
completion of the reconstruction and expansion of the Nico Lopez and
Hermanos Diaz refineries. Work on the first phase of the new Cienfuegos
refinery will be continued and the base for supertankers will be initiated
in Matanzas.

Nickel production will be increased with the completion of repairs at the
Moa and Nicaro mines and with the initiation of work at the Punta Gorda
plant at the end of the 5-year period.

Construction on a new nickel plant in Camariocas will be initiated. An
industrial center in Castellanos mine, Pinar del Rio, will also be built
for the mining of zinc, lead, pyrites and barites and for the production of
sulphuric acid.

In chemistry there are plans for an increase of 30 percent in the
production of fertilizers, of 25 percent in pharmaceutical products and of
approximately 50 percent in the production of inner tubes and tires. The
expansion and modernization of existing factories is being contemplated.

Plans are to more than double the production of liquid chlorine and caustic
soda. The production of industrial gases will be increased more than 40
percent. There will be increases in the production of soap, makeup and
cosmetics and plans are to greatly increase the production of detergents.
There are also plans to construct a liquid detergent plant with a capacity
of some 15,000 tons.

The investment program of this branch includes a factory making
concentrated insecticide, the beginning of an intermediate resins factory
[planta de resinas intermedias] for the production of paints and of resins
for artificial wood, as well as the expansion of the saltworks and the
modernization of soap and textile printing plants. The salt production
increase during the next 5-year period will be more than 50 percent.

The production of bottles will be doubled. The production of paper and
cardboard will increase more than 50 percent. Plans are to partially
complete a plate-glass factory in Pinar del Rio and to expand the plant in
San Jose de las Lajas, to start up the bottle factory in Las Tunas, the
paper plant of the Uruguay sugar mill, a new line of toilet paper of Cuban
manufacture, the modernization and expansion of the pulp and [word
indistinct] paper factory and the startup of the cardboard and paperboard
factory in Santa Cruz del Norte.

Plans are to complete the third stage of the expansion of Antillana de
Acero as well as the initiation of construction of the integrated steel
mill in Holguin. The production of deformed steel bars will be 15 to 20
percent higher than at present. The production of sugar combines will be
more than double that of the present 5-year period. The production of
automotive and transportation equipment will increase more than 40 percent,
especially 11-meter city buses.

The production of batteries will be more than doubled and the production of
irrigation equipment will be gradually increased in the factories of
Manzanillo and Cienfuegos.

There are plans for an increase in the production of spare parts based on a
better use of the existing capabilities as well as the utilization of some
new capabilities that are now being exploited. A factory to produce disks
for harrows and plows will be put into operation, as will the Martyrs of 26
July agricultural tools factory, the factory for sugarcane trailers, plants
for the repair of diesel and gasoline engines and others.

There are plans to develop the production of entire pieces of equipment and
plants, with an eye to replacing imports and to make exports. Plans include
the construction of railroad passenger cars. The production of television
sets will be increased, with the production of color tv sets to be
introduced, as well as radio receivers and production of drycell batteries.
All of these will be more than doubled.

The production of kerosene stoves and spare parts for them is also
increasing. The production of textile products will be increased by 50 to
60 percent. The weaving facility of (Balanje) will be put into operation
with an annual capacity of 15,000 tons, as will the textile combine at
Santiago de Cuba, with a capacity of 80 million meters per year.

A program of modernization of the existing tanneries and shoe factories
will be carried out, as well as other investments that will make it
possible to create the bases for improving the quality, durability and
comfort of shoes and to diversify the stock. There are plans to
substantially increase the production of mattresses, cushions and furniture
for the home.

The production of cement will reach over 4.5 million tons in 1985, which
will make it possible to meet domestic needs and increase exports. The
production of gravel and sand will increase by 14 and 40 percent,
respectively, in comparison with the present 5-year period. To guarantee
the housing plan for the coming decade, there are plans to build 50 plants
for prefabricated units, of which 35 will be completed in this 5-year
period. Investments in the construction materials industry are also
directed toward solving the deficit in installation and finishing
materials.

Production in the area of foodstuffs will be increased at an average annual
rate of between 4 and 4.5 percent. The production of meat products will
increase by over 20 percent over the 1980 level, with improvements in the
structure of the canned food industry.

The production of canned fruits and vegetables will be almost doubled. In
this area, a basic role is played by an increase in the industrial
processing of citrus fruits.

There will be a significant increase in the production of alcoholic
beverages. The soft drink industry will increase by over 50 percent over
the present 5-year period. There will also be an increase in the production
of beer, with emphasis placed on improvement of quality. The five existing
factories will be modernized. A new brewery will be built in Camaguey and
in the latter part of the 5-year period, another will be initiated, to go
into operation in the 1986-90 period. Plans include the installation of
five lines [cinco lineas] and four new soft drink factories as well as two
new mineral water plants.

In the production of tobacco and cigarettes, a process of recovery is
foreseen after the negative effects of the blue mold are overcome.

In the fishing industry, a growth of approximately 10 percent annually in
gross catch, in comparison with that of the present 5-year period, is
foreseen, as well as an important growth of fish breeding including the
construction of 10 (?hatcheries) and over 20 stocking centers.

In the agriculture and livestock sector, plans include important increases
in the production of coffee, tobacco, citrus and other fruits, grains and
above all, tubers and other vegetables.

The construction of 33 dams has been programmed, as well as other hydraulic
works. The area under irrigation in 1985, excluding cane fields, is
expected to be higher than that of 1980 by some 18,000 or 19,000
caballerias. The number of tractors will increase significantly. The use of
fertilizer in 1985 is expected to be 40-percent higher than that of 1980.
Three thousand five hundred km of rural highways will be built and over
30,000 housing units will be built for farm workers.

It has been decided that all state farming enterprises, including sugarcane
and cattle enterprises, will produce tubers and other vegetables in
addition to their usual crops for those in charge of these enterprises and
for consumption by the families of the farm and sugar workers.

In addition, there will be complementary contributions by the open peasant
market. The production of citrus fruits should be approximately 2 and a
half times that of the present 5-year period. Milk production is expected
to show an increase of more than 30 percent over the 1976-80 period.
Production of meat will grow steadily during the period, including beef,
pork and poultry.

In the production of eggs, the high levels already achieved will be
increased. It has been decided to develop the production of grain,
primarily beans, with an eye toward replacing imports and satisfaction of
the people's needs.

There are plans to improve railroad passenger transportation. The
completion of the central railroad is planned, as well as the initiation of
construction of new railroads, stations and the main secondary railways.

For transportation of urban passengers, over 2,500 buses will be added in
the 5-year period to provide a basic response to the needs of the city of
Havana. The other cities will receive over 4,000 Giron buses and some of
the buses that are presently operating in Havana.

The incorporation of 13,000 cars into taxi service is foreseen. The air
fleet will be increased by 16 long- and medium-range airplanes. The
participation of the maritime fleet in the country's transportation system
will increase with the acquisition of over 30 ships. Construction of over
250 km of national highway is planned, as well as the construction of over
600 km of other highways, in addition to the reconstruction of another 1000
km of highway.

Telephone lines will be increased by some 87,000 and there are plans to
subsequently exploit the coaxial cable in stages and complete it by the
year 1985, in addition to the installation of a national automatic dialing
system.

The people's standard of living will experience a sustained improvement
with emphasis on personal consumption, which will grow by more than 4
percent yearly. Social consumption will grow by approximately 3 percent
yearly.

Real per capita income in 1985 will be some 15 to 20 percent higher than at
present. In food, there is expected to be a daily consumption rate of 3,155
calories with 81.7 grams of protein per inhabitant. Production of tubers
and other vegetables will increase to the level of 250 to 300 pounds per
capita per year. There will be important increases in other basic foods,
although the increases will be more moderate.

There are also plans to improve supplies for public food programs, giving
primary importance to the improvement of workers' dining halls, the
servicing of which has deteriorated in the past few years.

The total supply of woven fabrics will increase by approximately 3 percent
per year and there will be two and a half times as many towels available as
at present.

The availability of work clothes will increase and the quality of shoes
will improve, which will also modestly increase in accordance with funding
possibilities.

The plan has taken resources into consideration that will give an important
reply to the need for work protection and hygiene articles.

As far as home electrical appliances and other durable goods, large numbers
of television sets, refrigerators, radios, washers, fans and, for the first
time, air conditioning equipment will be put on sale.

A plant will be installed for reactivating 50,000 television tubes a year.
Some 30,000 cars will be imported, twice as many as during this 5-year
period, to be distributed as directed and some 60,000 motorcycles for the
people.

Over 1 million stoves--mostly kerosene--will be produced during this 5-year
period and funds will be invested to ensure repairs to those already
existing. Availability of home fuel will be increased and transport and
[word indistinct] funds have been assigned to improve their distribution.
In addition, there are plans to continue developing the parallel market in
a series of products, both in the food and industrial lines, for the
purpose of progressively reducing rationing and increasingly freely
offering products to the people without jeopardy to lower income families.

We are currently studying a modification of retail prices which would be
based on the reduction in price of products of capital importance such as
medicine, and the increase of others, whose cost has increased
considerably.

Although as a whole the price reform will imply an increase in the expenses
of the population, this will be substantially lower than the increase of
income derived from the wage reform and the payment of premiums to the
workers, which are already in the process of being applied.

Also under consideration is a system of taxes on the income of peasants,
which will make it possible for them, like the rest of our people, to
contribute to the development of our economy and the maintenance of such
important services as health and education.

It is believed that the taxes to be paid by cooperatives will be lower than
the taxes for the individual peasant. There will also be important
improvements in public health with regard to the present situation.

The rate of medical assistance for every 1,000 inhabitants will increase
from 4.9 to 5.2. There will be 1 doctor for every 440 inhabitants, while
today, there is 1 for every 626; and dentists will go from 1 for every
2,600 inhabitants to 1 for every 1,900. Towards this end, some 10 hospitals
will be completed, 80 polyclinics and twice the number of homes for the
aged that were completed in the 5-year period now ending.

In education in the next 5-year period, there will be a change in the
structure of enrollment due to the modification in the age pyramid and
educational development. Therefore the increase of capabilities will be
oriented toward responding to this situation, improving the index of
availability at all educational levels.

Regarding infants, if in 1980 there is room for 110 children out of every
1,000 children up to 4 years of age, in 1985 there will be room for 120.

In primary semi-boarding schools, for every 1,000 children between 6 and
11, it will go from 208 in 1980 to some 300 in 1985.

In middle education boarding schools, for every 1,000 adolescents and
youths between 12 and 17 years, it will go from 357 this year to more than
400 in 1985.

The index of students in higher education will go from 34 students for
every 1,000 inhabitants over 17 to some 39 in 1985.

Brigades will be organized with the capacity for repairing 100 secondary
schools per year.

The cultural and recreational activities of the population will continue to
advance. There are plans for the construction of 40 new movie theaters and
the reconstruction of several theaters. Thirteen hotels will be completed
and the existing installations will be repaired and modernized with an
increase of nearly 6,000 rooms.

As we have seen, the plan proposed, although modest in its intents,
purports important improvements in the standard of living and is also an
important development in our economy because, to achieve a 5 percent
average annual growth under present world conditions, in the midst of the
crisis the world economy is facing, in the situation of an underdeveloped
country such as ours, subjected to a blockade and U.S. imperialist
aggression, will doubtless represent a great success. And our duty is to
dedicate ourselves to the task of every effort in our hands to turn into
reality the economic and social plans that will be discussed in this
congress and the plans outlined in the 5-year plan.

Many necessities, many desires, many ambitions are not outlined in this
plan. In our aspiration to resolve the problems of the people, we always
have a tendency to be idealistic, to be impatient to give the quickest
possible reply to all their needs.

However, it is necessary to be realistic and to be aware of our
possibilities, and our people understand it when we explain to them the
reasons and the factors that limit us and block us from achieving what we
want to within a given period.

We must work to accomplish this plan, which is based on our most immediate
possibilities and which definitely gives a positive reply to the demands
and most essential needs of the population. And at the same time, we must
work for future solutions which we cannot give nor execute in the next 5
years. [applause]

The podium is fixed. [laughter] The carpenters did an excellent job in a
few minutes. Everything has a solution. [applause]

Comrades, the first steps to draft what has been called the strategy for
the economic and social development up to the year 2000 were taken more
than 2 years ago. Since the average life expectancy has increased, one must
not be scared of the year 2000. Hundreds of experts and leaders of all the
organizations have participated in this work. They have made a great effort
and this has permitted the outlining of certain groundworks and goals for
the future development of the country. These studies are in their early
stages. We will work on them in the next few years so that the next 5-year
plan will be drafted based on this long-term perspective.

The main goal of the country's economic and social development is to
culminate in the building of the technical and material basis of socialism
through a socialist industrialization; sustained increase in efficiency of
social production; the progressive evolution of the economy toward a
rational structure of production that make possible a relatively high and
sustained growth; development of specialization, cooperation and economic
integration nationally as well as internationally; increased satisfaction
of the material and spiritual needs of the people and the integral human
training. A gradual approach to the level of development of the European
CEMA member countries must be promoted in this manner. The sugar, mining,
metallurgical, mechanical, electronic and chemical industries and the
sectors which produce consumer goods must be considered the main leaders in
the preferential development of the industrial sector.

In the sugar industry, we must guarantee the continued growth of our main
export and promote the diversification and expansion of sugarcane
byproducts.

In the mining and metallurgical industry, we must promote a more effective
extraction of the valuable metals contained in the existing mineral
deposits based on technologies which are energy efficient and on increased
integration with the mechanical industry through the highest production of
steel.

The mechanical and electronic industries will have to ensure an efficient
output to meet the needs for machinery, equipment and spare parts demanded
by the industrialization process combining the country's needs with the
possibilities for exports.

The development of the chemical industry must combine the alternatives of
production of sugarcane byproducts with those which can be obtained from
national resources with low-energy consumption.

Regarding the industries which produce consumer goods, particularly the
food and light industries, we must align their development with the needs
of the people and the expansion of exportable funds, thus promoting the
development of local industry.

Farm production must be maintained as one of the most important elements of
our economy. For this reason, it is required that it grow at higher and
more sustainable levels than those reached so far. This goal must be based
on an increase in farm and cattle production through a more rational use of
land, water and the assigned resources, the rotation of crops, the
development of a program for animal nutrition, the development of animal
and plant health and the intensification of the process of cooperatives
already underway.

The other sectors of production which render productive services, such as
transportation, communications and trade, must reach levels of activity
which guarantee the development of production, circulation and consumption
of goods needed by the country's economy.

The industrialization of our country also calls for an increase in the
level of interrelation among the branches of the national economy in order
to form great productive complexes to permit the maximum use of available
resources. The possibility for the integration of three great interrelated
productive complexes is foreseen in the near future. They are the sugar
agro-industrial complex, the agro-industrial food complex and the mining,
metallurgic and mechanical complex. The country must devote large resources
to face an increasingly complex process of investment as an indispensable
condition for economic development. This calls for an expansion of the
industry that produces machinery and equipment, an increase in the
construction capacity of the industry of construction materials, the
development of the national planning base as well as the reaching of high
levels of organization, planning, direction and implementation of the
investment process on a new scale superior to the one we have today.

Regarding the energy field, we must continue to implement a very efficient
policy of savings, to increase the electrification of the economy,
basically by implementing nuclear powerplants, and to promote the use of
our own energy resources, particularly the renewable resources and the
nonconventional sources.

The knowledge and the efficient use and protection of the natural resources
are essential factors to increase the national base of raw materials. Our
country does not have abundant resources. Some of them will tend to be
completely used up by the end of this century. Therefore, the soil, the
forest, the hydraulic potential, the marine platform and the mineral
reserves must be seen as resources of high strategic value.

Scientific and technical progress must be closely linked to the main
guidelines of production. Standardization metrology, quality control and
the strengthening of apparatuses for the design of new technologies--this
country was an example of a bad design [laughter]--will play an important
part in the reaching of this goal.

The mechanism for planning and directing the activities of science and
technology must be improved, especially regarding the introduction of
scientific and technological advances into production.

The natural resources which will be available to us over the next 20 years
will be one of the most important factors of our economic and social
development. To take fullest advantage of them we are going to need an
adequate selection of technology, so that whenever necessary advanced
techniques are introduced, other less costly techniques and more labor will
be used whenever it is possible and logical to offset them.

The training of technicians and specialists must be closely related to the
quantity and structure of specialties and the requirements of this process
for the utilization of the labor resources while at the same time taking
into consideration the requirements for technical assistance of other
underdeveloped countries to which our country can offer its cooperation.

The rational growth of consumption by the population in volume, quality and
variety must be considered as a permanent principal task in order to
satisfy the fundamental social necessities, to ensure the development of
the socialist way of living and to promote the realization of the principle
of distribution according to the quantity and quality of work.

The increase in the consumption of food, durable goods and other industrial
goods must be satisfied progressively based on the national production.

Special attention must be given to the development of the individualas a
whole creating the propicious material conditions for the development of
their creative spirit in cultural, artistic, scientific and educational
improvement activities for their massive participation in sports, physical
culture and national tourism, aimed principally at satisfying rest and
recreation. Therefore, free time must be increased and its rational use
improved.

To satisfy the housing needs, which requires integral development that
takes into consideration basically the realization of a strong and
sustained construction process, a type of housing must be selected
according to the characteristics of the family nucleus rather than
according to its construction and the expansion of the community services.

During this period, public health must be consolidated and must surpass the
level attained. Outpatient consultations and housecalls must continue to
increase the number of consultations per person thereby intensifying the
activities of preventive medicine. Similar efforts must be made in dental
[estomatologica] attention.

In the development of inpatient care, the number of beds per person must
continue to increase. A qualitative change is being considered in emergency
care by improving its organization, speed and quality. Specialized medical
care for workers will be increased, as will social assistance for old and
handicapped persons. Hygiene must continue to improve together with
epidemiology, paying special attention to the elimination of environmental
pollution, being on guard to eliminate the risks for the population,
especially in industrial zones.

During the period in question, the education system must fundamentally work
for internal improvement in order to consolidate the position attained and
simultaneously develop the capacities to educate and improve the qualified
labor force at the higher and middle levels.

The territorial distribution of the productive forces must have as an
objective a profound transformation of the territorial structures with an
efficient distribution of the productive activities, a more rational and
complete utilization of the natural and human resources, a better balanced
and faster development of the most backward provinces and a progressive
integration of the living standard of the various regions of the country,
the adoption of measures and orientation of internal migrations and the
consistent structuring of the urban system.

Our economy's foreign relations must be converted into a factor for the
stimulation of development, promoting the growth of traditional exports and
accelerating the start of the nontraditional exports of products with a
greater added value. Exports must increase and surpass the dynamics of
imports.

The attainment of these objectives must be based on broad, international
cooperation whose principal direction will be the intensification of
economic, scientific and technical integration in the framework of the
CEMA, especially with the Soviet Union, as well as an active participation
in the specialization and cooperation of production and the deepening of
economic relations with other underdeveloped countries, particularly with
those of Latin America and the Caribbean, taking into consideration the
positive tendency of national recovery of natural resources, which creates
possibilities for Cuba's participation in the commercial and economic
unions which are being established in this region.

In the next few years we should complete the work of the prospects up to
the year 2000, for which there are plans to draft, with the help of the
other socialist countries, a general scheme of economic and social
development which will permit us to define the most adequate path for
long-range development, to structure the plans and specific measures to
ensure its attainment and to define the principal directions of our
country's participation in the international socialist division of work.

The drafting of this scheme will require a considerable effort and
coordinated and close work among all entities in the country, the best
organization and the strictest discipline. Its successful completion should
enable the country to be provided with a panorama of the prospects to work
for, a long-range economic program to become a work banner for the party,
the government and all the people.

In the framework of this program, we have tried to shape our 5-year plan as
the specific expression of the goals to be attained and whose fulfillment
will constitute the principal task of everyone in the economic field.

We must now discuss the work accomplished by the FAR. Our duty under the
tense prevailing circumstances consists above all in examining the progress
made in the military area with the perspective of determining the policy to
be followed and to establish the specific measures which we are obliged to
adopt for the strengthening of the defensive capability of the country.

During the last few years we have developed the organic improvement of our
armed forces as planned. This has permitted a decrease in the number of
posts in the organs of management and security, simplifying their structure
and the exercise of command. All of this has created more favorable
conditions for strategic deployment in the defense of the national
territory. Of special importance has been the participation of the
organizations of the central administration of the state and of local
organs of people's government in the tasks of defense, whose links to the
FAR must be systematized and the preparation of the national economy and
the country as a whole must be made viable for the war of all the people.

Therefore, the FAR must continue to elevate its preparedness to mobilize
and to fight, to complete and to consolidate its structures at all levels
and to pay special attention to the most complete training in armaments and
existing technology or that which may be received.

The preparation of the commanding officers and general staffs must also
continue to be increased in step with the advances of contemporary military
science and to improve the military preparedness.

In line with the exigencies proposed by the first congress, we have
proceeded with the new recruitment policy, as a result of which young
people with increasing cultural level and better training in every way have
been progressively incorporated into active military service. This policy
must be consolidated in the future, stabilizing the draft age at 18 or 19
so that the young people will complete the middle level of higher education
and attain the physical and psychological maturity which will help them to
fulfill their service.

A system has been created to articulate the recruitment of graduates from
the technolgical and preuniversity institutes with the fulfillment of
active military service and their subsequent return to higher education.

This system permits the use of the reduction by up to a year of service
time in many cases as an incentive and permits the possibility of higher
civilian studies. This has greatly contributed to improving the preparation
of soldiers and allowed the universities to have young people with more
integral training achieved during their military service.

The Patriotic Military Education Society was created with those aims in
mind. It is called upon to contribute to the training of the new
generations so they can join the ranks and to educate children and young
people in our people's combative tradition and in the love of the FAR
through the practice of sports in the military and the increase of
patriotic military activities.

During the next 5 years it is necessary to continue giving priority to the
training of reservists through a plan which, keeping the same number of
reservists to be trained, will try to improve their quality by
concentrating efforts on the individuals training of officers, sergeants,
junior specialists and other specialists who are scarce. This requires
practicing a policy of incorporation of skilled personnel into the units so
that the majority of our workers will be appropriately trained and so that
it can be guaranteed that the critically needed personnel will be retained
in their positions so that production tasks and services can continue under
special circumstances.

It is also necessary during the next few years to consolidate the military
registration process at all job sites in the country and the registration
of economic means and equipment, the technical level of which must be
increased. This is a social need both for the military preparedness of the
FAR and for the better control [words indistinct] have obtained doctoral
degrees in military, technical and social sciences. Others are receiving
training for that.

The first party congress advocated the progressive improvement of the
standard of living and working conditions of the officers and enlisted men,
bearing in mind the complex tasks and missions they perform and the social
prestige of their work. Despite the attention paid to this task and the
progress made in this regard, we are still far from meeting, as we would
like, the housing needs for thousands of men who selflessly and oftentimes
dangerously, away from their families for months and even years at a time
when they are involved in internationalist missions, work with great
enthusiasm to ensure the defense of the nation and the creative work of our
people and who, with exemplary self-denial and readiness to sacrifice,
permit themselves to perform the sacred duties of solidarity of our
revolution.

The influence of the organizational and ideological work done by the party
organizations and bodies, and the political work performed by the chiefs,
political workers and officers stand out in all the FAR activities. The
party organizations and bodies have adapted the work procedures and
practices to the specific conditions of military life, improving the
effectiveness of the party's work in educating cadre and combatants,
ensuring the successful performance of unit missions, and strengthening
discipline and a single chain of command.

The degree attained in the Marxist-Leninist training of the officers, in
the study of social sciences in the military training centers and in the
political preparation of the combatants and civilian workers stand out in
the overall, effective political and party work performed in the FAR. Three
levels of party education have been established for the internal training
of the militants. Through them the systematic mass incorporation of party
militants and those who want to wed the party to the study of
Marxism-Leninism has been promoted. The sustained effort of the political
organizations, the party organizations and all its militants to improve
their political-ideological training and that of all personnel has yielded
great results and deserves to be commended.

The Youth Labor Army [EJT] has become a training ground in which thousands
of young people are trained in everyday work under difficult conditions and
it continues to make an important contribution to the national economy, in
addition to the fact that it is organized as a military force. During the
past 5 years, the EJT combatants cut 3 billion arrobas of cane, about 20
percent of the total cane cut by hand in the nation. As a result of a
powerful millionaire cutters drive, 172 harvest heroes have come from its
ranks.

In construction, the EJT has turned over 58 projects, mostly schools worth
around 60 million pesos, and it has participated prominently in building
the central railroad, on which its forces have laid 422 km of track.

The present development of our armed forces, its excellent and modern
equipment, would not have been possible without the extraordinary help
received from the USSR which, since the difficult days of Playa Giron, has
been generously supplying us with the combat techniques for our defense,
and whose specialists--devoted, exemplary, modest and efficient--have
worked side by side with us during 20 years. [applause]

It is up to us to increase our defense capability and to be ready not just
for action by our regular troops, but for the struggle of our entire
nation. A task of vital importance which is already underway and to which
our party, the state and the political and mass organizations must attach
the highest priority for the defense of the nation--because it is an
unmistakeable complement of our defense system--is the creation of the
territorial troop militias which, along with the regular units and the
reserves, will compose the big popular army of our revolution as announced
on 1 May 1980 in view of the Yankee threats and military maneuvers near
Cuba. The welcome that the mass of our people has given to this idea again
denotes their high patriotic and revolutionary awareness, the best
expression of which is precisely the willingness to train to defend the
sovereignty of the nation and the work of socialism at whatever cost. Today
millions of men and women are claiming this right and are thus showing
their firm political convictions.

Of course, our weapons stocks are limited, but we will not rest until every
Cuban--willing to defend, inch by inch and house by house, his
neighborhood, his municipality, his job site, every square inch of the
nation--can have a rifle, a grenade [applause] or a mine and be well
prepared to do his sacred duty of defending the nation to the last drop of
blood.

To the idea of the territorial militias one must add the principle that
every Cuban patriot, male or female of whatever age, under whatever
circumstances, even if part of the territory is occupied through an
imperialist act of aggression, must be ready to fight and kill enemies in
an all-out war. [applause]

Our fatherland must be a very hard bone to chew to the teeth of Yankee
imperialism, one that will mortally stick in its throat if it tries to
attack us [lengthy applause and chanting: "Fidel, for sure, hit the Yankees
hard."]

It is impossible to recount the work of our armed forces over these 5 years
without mentioning the quick, resolute and brilliant accomplishment of the
internationalist aid missions that the party to entrusted them in Angola
and Ethiopia. [applause]

Thousands of kilometers from their fatherland, without any hesitation, our
troops--which included a large percentage of our worker reservists--along
with the heroic Angolan and Ethiopian fighters, confronted and defeated the
aggressors who, at the service of imperialism, were threatening the
integrity, independence and revolution of these two brother African
peoples. [applause]

This occurred for the first time in history. One of the nations that was
founded in our hemisphere--partly with the blood of hundreds of thousands
of slaves cruelly snatched from Africa by rapacious colonialism--was
sending thousands of its children to fight alongside people defending
liberty and dignity in Africa. [applause]

Imperialism and international reaction slandered our country furiously for
this act of solidarity. On the other hand we are satisfied that the peoples
of Angola and Ethiopia and all revolutionary and progressive forces find
this noble and disinterested gesture of Cuba extremely valuable. It was a
brilliant and beautiful page of internationalism already in the history of
the revolutionary movement.

We Cuban revolutionaries do not like to talk--and we do so very
unwillingly--about solidarity with other peoples or revolutionary movements
because this simply constitutes a duty of our internationalist conscience.
[applause]

However, on an occasion such as this it is also fair to honor the men who
sacrificed themselves and give their lives, far from home, for the noble
cause of freedom, [applause] for the noble cause of freedom, justice and
human dignity, as well as to express our deepest recognition of and
affection for the many thousands of compatriots who, thousands of miles
from Cuba, are on guard along with their Angolan and Ethiopian brothers, in
the trenches of southern Angola, in the Ogaden or other places, and
likewise those who, in other countries, are cooperating in the defense and
training of their armed forces. [applause]

This was possible, but not without great effort. Therefore, we must also
express gratitude and recognition to the chiefs, officers, political organ
and organizations of the party, general staffs and combatants who, with the
renewed effort demanded by the absence of thousands of command cadres and
specialists, succeeded in increasing the combat capacity and assimilating
new types of weapons and technology with which the firepower and capability
of our troops has increased markedly.

Taking into consideration the initial troops and the successive
replacements, over 100,000 Cubans have served in Angola and Ethiopia
through the Revolutionary Armed Forces. [applause]

We are stronger militarily today. And a nation whose children are capable
of fighting and even of offering their lives in any corner of the world and
who will not hesitate to offer them a thousand times for the country of
their birth, can never be defeated. [rhythmic applause] The gallant
combatants of our Revolutionary Armed Forces deserve the respect,
recognition and affection of our people.

Regarding the Interior Ministry, in some areas there was a weakening in its
cadres' efficiency and exemplary attitude which have characterized their
heroic and extraordinary struggles for years.

This did not occur in the face of the counterrevolutionary enemy. There,
the fighting and impressive efficiency of the cadres did not fail. However,
the Interior Ministry handles a great number of tasks. All of these tasks
are of fundamental importance to the country and the revolution. In some
areas there was bureaucratization and an easing in demands and in
discipline. Sunspots will not prevent us from seeing the sun, but we always
want our Interior Ministry to be like a sun without blemish. [applause]

We have been working and making advances and reaching positive results in
overcoming these difficulties. Our state security organs have detected,
neutralized and firmly fought the activities carried out against Cuba by
imperialism, the CIA and the remnants of internal counterrevolution. In the
last 5 years there have been activities of political and economic
espionage, and the enemy particularly emphasized work aimed at hindering
our trade negotiations with other countries. Likewise, there occurred
diversionist actions intended to foster a climate of ideological slackening
and destabilization within the nation.

In the face of these plans and these diverse acts of hostility by the
enemy, our security once again proved its condition as a firm, sure and
powerful defender of the interests of the revolution and the people.

The strictest fidelity to the principle of never utilizing violence against
the arrested enemy has continued to be inviolable norm of the security
organ's work. This has permitted greater development of its operational
capacity, its intelligence, and has raised even further its authority and
revolutionary morale.

Along with the other organs of the Interior Ministry, security combatants
have distinguished themselves during this period for their valuable support
for the holding of the great international events celebrated in our
country, such as the 11th world youth and student festival and sixth summit
conference of the nonaligned countries.

We cannot but mention the combatants who, with proverbial revolutionary
stoicism, have accomplished the delicate mission entrusted to them within
the very ranks of the enemy through these years. Likewise, the heroic
border guards, who maintain zealous guard over every inch of our country,
also deserve the salute and recognition of all the people.

During the greater part of the past 5-year period there was a weak response
by the National Revolutionary Police to the call to double the fight
against the crimes of theft and larcency and in other tasks entrusted to
it. There were problems in the demands made of the cadres, in discipline.
There were deficiencies in the selection of personnel, and a lack of
decision and firmness in confrontations with antisocial elements. The main
difficulties were found in the command and in some legal mechanisms that
did not contribute to a more active and efficient effort to fight crime.
This year firm efforts were made to eradicate this problem, and although
there are still some deficiencies, in general terms more efficient work by
the fighters of the National Revolutionary Police is already evident.

One of the first steps in this direction was the adoption of vigorous
measures toward the end of 1979 to neutralize elements with bad criminal
records and a high degree of social danger. This measure, the later exodus
of the scum to the United States and the increase in the rate of operations
against crime permitted crime against property, which since 1975 had been
on an upward trend, to begin to drop in this past year. There were 23
percent fewer forceable robberies in 1980 than in 1979. Robberies with
violence or intimidation were considerably reduced and were 23 percent
fewer this year than in 1975.

Traffic accidents, which had increased during the early years of the past
5-year period, already show a decline and in 1980 reached the lowest figure
in the last few years, with 19 percent fewer than in 1979. However, there
has been a relative increase in accidents in terms of human lives, injuries
and property damage. The struggle against negligence, which causes traffic
accidents, must be maintained and tenaciously improved.

We would like to stress the decisive role played by the men and women of
the Interior Ministry along with all our combative people in the events at
the Peruvian Embassy, the U.S. Interests Office and the departure of
antisocial elements via Mariel. In particular, our National Revolutionary
Police remained mobilized for months and accomplished the duties entrusted
to them with a high spirit of responsibility, and made a large contribution
to this great political and moral victory of our fatherland. [applause]

We have attained important advances in the decrease of fires, their
prevention and in the struggle to eradicate their causes. The firefighters
have been noted for their calm, courageous and efficient attitude at times
when lives and valuable resources were endangered.

Within our policy we have implemented a vast national plan to improve our
penitentiary system and update its material base. The average number of
inmates incorporated into socially useful work with the corresponding
salary is greater than 78 percent of those eligible for this program.

In coordination with the Education Ministry, we have given special
attention to the situation of juvenile delinquents.

In the Angolan war, supporting the patriots against the racist South
African invasion, during the most difficult days, together with our
glorious Revolutionary Armed Forces, the special troops battalion of the
Interior Ministry fought heroically and carried out especially important
missions. [applause]

Also during these years, the Interior Ministry has given its cooperation
and internationalist assistance to many countries. The Interior Ministry
fighters will have to confront many complex tasks. We now have a higher
institute to help properly train, professionally and technically, with an
enrollment of more than 900 students.

The necessary steps are being given to establish the first areas of
specialization of its graduates. The work from now on will be dedicated to
reinforcing expediency and control, strengthening discipline at all levels,
expanding the policies of cells, to establishing a proper hierarchy in the
operational level, eliminating all expressions of bureaucratism and to
developing political work in the implementation of specific tasks.

With regard to the Revolutionary National Police, their command units have
been strengthened and more measures will be taken to improve their working
conditions, equipping patrol units and advancing cultural and technical
programs to obtain a maximum operational level.

We are fully confident that the Interior Ministry fighters will continue
reinforcing their ideological and political training. The future will find
this unbreakable and firm shield of our country still stronger. Its
fighters will be an example of responsibility and dedication to duty and
will continue to have the support, confidence, love and respect of our
people. [applause]

It is indisputable that mass organizations have played an important role
during these years in our country. They have successfully deployed their
forces in the daily struggle against our class enemy at home and abroad.

In the political field, since the very day of the revolutionary triumph and
in the period we are now analyzing, they have worked to consolidate power
in the hands of the working classes--the peasants and other manual and
intellectual workers in the cities and in the country--through
revolutionary vigilance, ideological combat in streets and factories,
diffusion of Marxist-Leninist ideas and helping them to prevail in our
country. They also have helped in the struggle to increase production,
savings and efficiency, to promote our socialist economy and to create and
develop relations of cooperation in comradery inherent to the nature of
socialism.

The mass organizations' capacity to mobilize and to work has played a
decisive role in the attainment of success in the fields of education,
health, culture, sports and the moral and spiritual development of our
society.

The party has depended on, and still depends on, these powerful arms that
the mass organizations provide. They are the ties to ensure a closer link
with the broad masses of the people.

The Cuban labor federation has included in its ranks 2.383 million members.
This represents 97.1 percent of the active labor force. From 1975 to date,
there has been a 4.7 increase related to the 92.4 percent of membership of
that year.

During these past 5 years, the 14th CTC [Central Organization of Cuban
Trade Unions] congress was held. It continued the work of the 13th congress
to which unforgettable Companero Lazaro Pena dedicated the last days of his
life. [applause]

The fundamental conclusions of the 13th congress were fulfilled. This
served as a starting point for the radicalization of our labor
organizations and set the basis for a greater contribution of the working
classes to the nation's development.

With regard to the 14th congress, its conclusions are evidence of the
advances attained by the unions in the strengthening of their internal
organizations, of their improvement and the political, cultural and
technical advance of the workers and the promotion of socialist emulation
of the respect for the workers rights, of the work discipline, of the
implementation of activities such as the linking of salaries to production,
the sugar harvest, the movement of innovators and planners, the
internationalist activities, as well as a general contribution to the
economic, social and political development of our country.

The structure and work methods of labor organizations extends to the areas
of attention needed by the basic organizations to improve their operation
and to contribute to a greater relationship between the upper echelons with
the base, and to the development of the awareness of the importance and
need for maintaining and increasing this attention in the future.

This year, we celebrated the 20th anniversary of the participation of the
labor movement in the people's tasks. During each of the past 5-year
periods, an average of 44,146 volunteer sugarcane cutters have been
mobilized and during the past harvest, we fulfilled the harvesting plan by
110 percent.

Starting in 1977, the labor movement has been holding Red Sundays in homage
of the October Revolution anniversary and other important events. A total
of 15 Red Sundays have been held during which over 8.089 million workers
were mobilized.

The last Red Sunday dedicated to the 73d anniversary of the great October
Revolution and the second party congress was the greatest with 1.71 million
workers mobilized.

Workers and labor leaders actively have participated in the implementation
of the economy's direction and planning. With regards to economic training,
the labor movement today has training in 30 economy sectors and other areas
still under study. In the national and provincial schools for economic
management, more than 300 students have been graduated at various levels
and more than 400,000 workers have attended lectures on this specialty.
However, this is still insufficient. During this period, the labor movement
continued participating in the process of discussion and projection of the
national economy plans.

More than 1.445 million workers participated in the discussions of the 1980
economic plan. This is an activity which must be continued and perfected.

In 1976, the National Association of Innovators and Efficiency Experts was
created. This organization, led by the labor movement, already has more
than 33,000 members who during the past 5 years have made 14,872
innovations with an economic value of 127.228 million pesos.

During this period, important objectives were established to strengthen and
promote the socialist emulation, concentrating emulative indicators on
those aspects directly related to economic tasks and the strengthening of
work discipline.

More than 235,000 additional workers are participating in individual
emulations in addition to those who form part of the movement of the
distinguished workers in the different sectors of the economy.

During the last 5 years, 178 workers have been declared national work
heroes. The Council of State awarded the Jesus Menendez Medal to 34
distinguished workers during 1980. More than 19,580 emulative units are now
designated as Moncadista Centers. As an objective for welcoming the second
party congress, the CTC National Committee took up the task of updating
500,000 work norms, extending the linkage between work and norms to 1
million workers and granting premium payments to 500,000 workers. These
goals were overfulfilled.

One of the labor movement's fundamental accomplishments during this period
is related to the technical and cultural improvement of the workers. The
struggle for the sixth grade was successfully completed. From the 1975-76
school year when this effort was begun to October 1980, a total of 862,500
adults were graduated from that grade. [applause]

This is still a preliminary figure and it is estimated that by the end of
the year the number of sixth grade graduates could surpass 900,000. To
justly evaluate the historic greatness of this task, it is sufficient to
say that during the 12 years before the 1975-76 school year only slightly
more than 500,000 adults were graduated. In half the time this number has
been doubled. Since the beginning of the revolution and including the
latest results, a total of 1,397,636 working men and women graduated from
sixth grade.

Inspired by this success, the labor movement is now facing the battle for
the ninth grade, which will undoubtedly result in another educational
victory for our workers. It will serve as the basis for a greater technical
and productive development of our socialist revolution. The labor movement
plans to have not less than 700,000 ninth grade graduates by the year 1985.
The present enrollment is 131,974 workers.

The trade union schools have made it possible for 34,577 trade union cadres
to complete their studies. Trade union and political education has also
been extended to 415 labor leaders in Latin America, the Caribbean and
Africa.

The movement of workers who are art amateurs has progressed in its various
manifestations, as has athletics. Three festivals of amateurs have been
held with the participation of more than 181,000 workers. An average of
900,000 workers per year have participated in sports on the INDER social
calendar and the participation in the workers' athletic events has
increased from 621,924 in 1976 to more than 1,589,000 in 1980.

The labor movement has been working a great deal to fulfill the agreements
which were adopted to strengthen work discipline. The accomplishments which
have been made in this field with more work efficiency and firmness are
encouraging.

A noteworthy effort has been made in the preparation of the union and
worker cadres so that they will be ready to face the demands of the labor
and social security legislation. More than 250,000 trade union leaders have
participated in seminars. Six study circles have been held with the
country's workers to impart knowledge of the legal norms. One million
tabloids have been published containing the most important labor and social
standards and 200,000 leaflets with the social security law have been
printed.

An activity catalogued as insufficient is job safety. There are limitations
and deficiencies in the fulfillment of the norms and worker protection and
in the supply of procedures and equipment for the workers, which are mainly
the responsibility of the state.

Work has been done on one of the most transcendental objectives of our
labor movement, that is, the constant elevation of the political and
ideological conscience of the workers through the struggle for economic
development, education, political study, the promotion of useful voluntary
work, the deepening of ideas and the practice of the noble principles of
proletarian internationalism, the support for the defense of the country
and the dedicated work of our armed forces, the organization of the labor
guard [guardia obrera] and the struggle against the remnants of the past
and for the development of a genuinely socialist attitude toward work,
society and social property.

Our labor movement is now more vigorous and dynamic than ever. [applause]
Its ties with the party and the revolution is absolute and complete. Its
commitment with socialism and internationalism constitutes a living
monument to the immortal ideas of Marx and Engels. [applause]

The dominant classes can tremble before a communist revolution. The workers
have nothing to lose except their chains. [applause] On the other hand,
they have a world to win. Workers of the world, unite: [applause]

The National Association of Small Farmers [ANAP] has 192,646 associates
throughout the country in 3,507 basic organizations. Of these, 1,017 are
agricultural and livestock cooperatives, 2,180 are credit and service
cooperatives and 310 are peasant associations.

The peasant sector continues to have a significant importance in the
production of tobacco, to which it contributes 79 percent while to coffee
[production] it contributes 60 percent, and to truck gardening, 47 percent.
It has at its disposal 27 percent of the country's livestock and 18 percent
of its sugarcane. During the last sugar harvest the machetero peasants had
367 millionaire brigades, over 100 more brigades than in 1975.

It is significant to note that the ANAP has worked on the organization and
development of credit and service cooperatives, which constitute an
intermediate form of cooperative, and which develop those possible elements
of collaboration and tend to guarantee that the producer is not obliged to
carry out functions which are not specifically productive.

This organization has also worked on the creation of the mutual aid
brigades and the SCNC [expansion unknown], ANAP and the sugarcane brigades
as simple forms of cooperation. All of this has contributed to the gradual
incorporation of the peasants into the higher forms of production. This
occurred after the agreements reached during the first PCC Congress and the
fifth ANAP congress, held in May of 1977, which started the cooperative
process based on the strictest respect for the will of the peasant family
and their integration into the socialist forms of production.

There were 43 production cooperatives in the peasant sector up to 1975.
Those which were founded in the early sixties were called farming
associations. This movement began to increase and by the end of 1978, there
were 363 cooperatives with 1,246 caballerias of cooperative land.

The 8th plenum of the Central Committee called for faster creation of new
cooperatives. After that, the ANAP increased its work in this regard so
that during 1979 and this year, the number of farming cooperatives
increased by 654 and by more than 10,000 caballerias of land. In this
manner, by the end of the fourth quarter of 1980 there were 1,017
cooperatives with 14,007 caballerias of land. Therefore, 11.4 percent of
the land is in the hands of peasants. Some 25 cooperatives are large ones
which cover an area that varies from 35 to 150 caballerias. The total
number of cooperative members is 26,454 and of these more than 30 percent
are women. Therefore, women have been a greatly influential force in the
transformation of working and living conditions of the peasant family.
[applause]

The achievements made during this brief period of time are the result of
hard efforts, the quality of which presages great prospects for the
movement. In general, the co-ops currently are reporting high production by
area. They are doubling and tripling the production of the individual
parcels that make them up and they are introducing machinery and
technology. The average cost per peso of production is 10 centavos. This is
a very encouraging profit margin, all the more so if we bear in mind the
effects on the rural areas of the cane rust and blue mold in tobacco.

The support of the peasant organization has been felt not only in the
cooperation offered to the Agriculture and Sugar Ministries to develop
agricultural and livestock production but also in the contribution made to
various state agencies involved in the sociocultural development of the
peasant families such as the Education Ministry, Public Health Ministry,
Culture Ministry, the National Institute for Sports, Physical Education and
Recreation [INDER], and the Cuban Radio and Television Institute. The
National Association of Small Farmers [ANAP] has waged a successful battle
so that all peasants who could study would finish sixth grade during the
past 5 years. It recently declared that it had accomplished this important
task. [applause]

A total of 31,376 peasants has finished sixth grade in this period of time.
The organization plans to continue working toward achieving more active and
conscientious participation by the peasant sector in the economy, by the
proper use of socialist emulation because the results achieved to date are
not what was expected. It also was proposed to improve the collection of
the members' dues which is still not entirely satisfactory.

The first national co-op members' meeting which was held recently showed us
the promising advances which are being made by increasing production and by
achieving better ways of working and living in society. With the support of
the party and the state bodies, ANAP is in a position to continue firmly
advancing toward the development and consolidation of the co-op movement.
Its sixth congress, which will be held next year, will be the proper way to
work toward that goal.

The success achieved by the co-op in the economic, social and political
areas holds brilliant prospects for this better form of peasant production.
Our revolution should have promoted this process before. We are now
marching aright, without haste or risks. The extraordinary patriotic,
revolutionary and humanitarian quality of our peasants ensures success.
They will have the maximum support of the party and the state. We will
recover lost time. Healthy emulation already is being practiced between the
state farms and the co-ops, between the agricultural workers and the
peasants. The nation, the revolution and the just ideas of Marxism-Leninism
shall bear fruit. [applause]

The women's organization, which this year is 20 years old, has gathered 80
percent of women over 14, represented by workers, peasants, students,
homemakers, professional women, FAR members and Interior Ministry workers.
It currently has 2.42 million members. In the period we are analyzing,
Cuban women, guided by the Federation of Cuban Women [FMC], have worked
hard to live by the agreements reached by their second congress and by the
first party congress for the sake of achieving full equal rights for women.

The results of this 5-year plan were thoroughly analyzed by the third FMC
congress held this year. Considerable advance has been made in the struggle
to achieve women's integral development and their effective and complete
incorporation into the tasks of building the socialist society in all
aspects of political, economic, social and cultural life. An example of
that has been the incorporation of 141,500 women to new jobs, their long
tenure and the favorable variation in their distribution by occupational
categories.

The number of women in technical posts has grown in the last 5 years
because 77,000 of them are in this category; that is, 60.2 percent of all
workers who have occupied such positions in the nation and 55 percent of
the women who have joined the job force during these 5 years. During these
years, material conditions have been established to allow women to have
greater access to labor. Every measure taken on this has been accompanied
by important ideological work and specific guidelines which have
contributed to current results.

The advance made during these 5 years has been achieved through the
appropriate policy of promoting women followed by the party. A total of 32
percent of the work force is women and measures must be taken to keep up
those figures. It is necessary to permanently demand that the policy of
hiring women be practiced to forestall the use of favoritism or
discrimination in hiring and promotion. We must be more zealous in this as
we begin to use direct hiring. The proper use of this system should promote
the creation of new jobs for women, particularly in agriculture and
livestock and in the people's government industries. The march toward
better forms of production in the peasant sector also offers women a large
area of participation.

There is a high number of female co-op members and that number should rise
even more in the future. It is only fair to mention the outstanding ability
of women workers. They represent 39.4 percent of workers who are studying.
The prestige they enjoy among their comrades is noticeable because they
constitute 42.7 percent of the leaders chosen in the labor sections and
32.6 percent in the labor bureaus. [applause]

These achievements in women's promotion within the labor movement are
encouraging. It is necessary to continue advancing in this regard in the
party. The Union of Young Communists [UJC] and the other mass and social
organizations have been noticed to improve during the past 5 years while in
peoples government women's promotions have been lower. The FMC has made a
valuable contribution to the goal of incorporating women into leadership
duties. It has tried to find solutions to all the factors that might
prevent the achievement of that goal. Other data on FMC activities in the
last few years are the incorporation of 1,498,000 women to the movement of
mothers fighting for education, a powerful support for the schools. More
than 200,000 housewives have finished sixth grade [applause] and thousands
of others are trying to finish ninth grade.

The FMC has contributed to the sugar, coffee and tobacco harvests and other
important crops and harvests, to the steady work of the social workers to
prevent crime and to the work of 55,000 women health brigade members who
voluntarily are doing health-related jobs in the mother-child care program.
During this period, we must highlight their work in vaccinating 5-year-olds
and housewives and in the administration of more than 389,000 psychological
tests in 1979 and more than 223,000 in the first half of this year. This is
an indication of the incessant work done by these brigades which also are
devoted to the defense of the nation through their permanent preparation
for wartime as members of civil defense.

The political and ideological development attained by Cuban women is really
impressive. Their work as internationalist workers, their disposition as
combatants, their attitude regarding the defense of the nation are examples
of this. It is necessary to stress their firm and determined participation
in the struggle waged by all our people vis-a-vis the provocations of
internal and international enemies. The FMC is doing permanent work to
improve the ideological training of its membership and cadres. Some 27.7
percent of the FMC cadres have taken the medium-level and basic courses
given by the party schools and the FE del Valle school [of the FMC] which
is also attended by comrades from Africa, Asia and Latin America is a real
token of the FMC's solidarity with its sisters throughout the world.

The international work of the federation has been valuable and important.
The FMC has great prestige both among the international bodies and the
women's organizations with which it is in contact. The FMC has worked
seriously on the recommendation of the eighth central committee plenum
concerning the need for it to fund itself.

It has maintained strict control of expenses and it has increased its
revenue through a policy of austerity, achieving an index of meeting 80
percent of the expenditures in its budget.

Fulfilling one of the resolutions of its third congress, the women's
organization is involved in the analysis of its structure and the content
of future tasks. For this purpose, it plans to strengthen and improve work
style and methods as well as the internal operation of the organization.
Through its theses and resolutions, the third congress of the Cuban women's
federation called for continuing the struggle for the full exercise of
women's equality. Our party, in a joint effort with the state, the UJC and
the country's mass and social organizations, reiterates its determined and
firm support of this struggle which we will not cease until this historic
objective is achieved.

Only the socialist revolution can lift woman from her condition as slave,
instrument of pleasure, victim of all kinds of prejudice and of cruel
social discrimination in a class society to the full equality, dignity and
opportunity in socialism. If we have not yet achieved it totally, we are
advancing along that path. With their own struggle and that of all the
revolutionaries, we will achieve this historic, just and unwavering goal of
our revolution. The entire country will benefit.

It is essential for the future of mankind that society can enjoy the
benefits offered by the abnegation, spirit of sacrifice, unsurpassable
sense of responsibility and all the political, administrative and humane
capacity with which nature has endowed women. [applause]

In the period we are analyzing, the Committees for the Defense of the
Revolution [CDR] have confirmed their condition as an irreplaceable
instrument in the development and promotion of the tasks of the defense of
the fatherland, the political and ideological education of the masses and
the support of the tasks of the community.

The theses and the resolutions approved at its first congress held in 1977,
helped to strengthen its organizational functioning and elevate the
political level of its members, demonstrating once again the unrestricted
support of all our people, grouped in the largest of our mass
organizations, for our party and for the construction of socialism in our
country. In carrying out revolutionary vigilance, the CDR's basic task,
they have worked with dedication these past years. In response to the call
to redouble the participation of the CDR masses in this important task, a
call issued during the eighth plenum of the central committee, there was a
notable increase in membership in the night guards, consisting of the daily
presence of more than 30,000 defenders of the revolutionary power in our
blocks. This has contributed to a much more effective detection and
prevention of crime and other activities directed against the goods of our
working people and the security of our revolutionary state.

The important role played by the CDR in the development of the conscience
of the masses clearly was demonstrated in the glorious events of April and
May in response to the provocations of the antisocial individuals and the
enemies of the revolution. The dates 19 April, 1 May, 17 May and 27
September were culminating points in the march of the fighting people and
will be recorded in history as decisive battles won by the people in their
proper response to the internal and external enemies of the revolution.

The support which this mass organization has given to the various economic,
cultural and social activities in the community has been shown in the
collection of more than 81 million pounds of paper and cardboard, 224
million glass bottles and almost 500,000 ounces of stamps which bring tens
of thousands of pesos in foreign exchange for the country.

More than 1 million parents or relatives of our school children and youths
obtained each year the distinction of exemplary parents in education. The
popular schools of parents have become an effective tool for training and
linking parents and relatives with the students and the schools. The
contribution of the CDR to the strengthening of the school councils and
other tasks in support of education must be noted. The polio vaccination
plans have been successfully carried out. The blood donations surpass by
more than 100,000 those achieved in the previous 5-year period. The CDR
members actively have participated in numerous prophylactic tasks and in
various campaigns carried out by the Public Health Ministry.

The mobilizations for volunteer work as a shaper of communist conscience
have counted due to the enthusiastic participation of the CDR, basically in
the support given to agricultural tasks and cleanup, beautification and
other tasks, achieving the figure of more than 50 million mobilized in the
past 5 years.

Since their creation, the organs of the people's government have found in
the CDR their most active collaboration, both in the effective contribution
to the election processes carried out as well as in the mobilization and
preparation of the assemblies of rendering of accounts by the delegates in
the electoral districts and the propaganda and dissemination about this
important instrument of socialist democracy.

During these years, in fulfillment of the resolutions adopted in its first
congress, the CDR have worked to improve the indexes of the dues
[contizacion] of their members. They are carrying out a policy of austerity
and savings in all areas and this year they have achieved the
self-financing of the organization.

This powerful mass organization which recently commemorated its first 20
years of unselfish and praiseworthy work has 5,321,000 members. [applause]
In the period it has grown by more than 500,000 new members. The
organization has expressed the need to give priority in its future growth
to youths about to turn 14.

As a creative idea of the revolution, which founded for the first time in
history this mass organization, the CDR constitute a contribution to the
experience of the world revolutionary movement. They have been and are the
dread of the counterrevolution and they are a huge popular tide without
which, through their resolute support of the party, one could not imagine
the happiness of the revolution and the enthusiasm, organization and
discipline of the march of our fighting people. [applause]

The Federation of University Students [FEU] and the Federation of
Intermediate Level Students [FEEM] include more than 450,000 students. They
have made an important contribution to the task of achieving a better
quality of education and at the same time they have increased their
influence and capacity of mobilization among the students. One of the
activities in which the attention of the FEU and the FEEM has been
concentrated is the linking of study with work. The effort being carried
out by the student organizations in the incorporation of youths into the
priority specialties and of the university graduates into the places where
they are most needed also must be noted. The incorporation of youths in the
Manuel Ascunce Domenech teaching detachment is of outstanding value. From
its members, the Che Guevara internationalist detachment, which has carried
out prestigious and praiseworthy service, was formed.

During vacations, the students have mobilized to work in our fields, in the
weeding of sugarcane and other tasks with positive results. Among other
basic tasks, these organizations must continue working so that the students
will take sufficient advantage of the work day, so that individual and
collective study will be carried out systematically, so that there is
increasing respect of professors, formal education and the care of social
property and so that each student will have an absolutely consistent
attitude toward study, work and the principles of our society.

During the past school term, substantial changes were introduced in student
emulation which should promote its development and increase the
participation of the students. A greater recognition of the outstanding
youths, better publicizing of the results and the definite selection of the
incentives also will help guarantee that emulation will fulfill its proper
role.

The student assemblies for communist education, as well as those of merits
and emeritus, have been an important instrument for the improvement of the
social conduct, the formal education and the critical and self-critical
spirit of the youths. We should make efforts so that these assemblies will
continuously improve their quality and educational content.

In the next years, the FEU and FEEM must strengthen their role of
representing and adequately channeling the concerns and interests of the
students. For their part the state organizations should support the student
organizations in fulfilling this function, should solve the problems within
the possibilities of the country and should in all cases offer clear and
convincing replies to the students.

Both organizations must pay special attention to the stability and quality
of functioning of the rank-and-file structures by stimulating the mass
practice of cultural and sports activities as well as by promoting the
adequate use of free time. Our students' participation in the struggle for
revolutionary exigency which all the people are waging is stimulating.
Today we have more patriotic, internationalist, cultured, aware and
revolutionary students, as was confirmed in the first great battle of this
generation of young people which was waged in the months of April and May
of this year. In those formidable mass mobilizations our students took to
the streets with resolute combativeness and made evident their great
potential which shows that the revolution's efforts for the young people
have not been in vain. We must state today with absolute certainty and
optimism that in the classrooms a worthy relief is being forged which is
the guarantee for the continuity and the future advance of the
revolutionary work. [applause]

The Pioneers organization completed its process of extension to the ninth
grade, by which it increased its ranks to 2.2 million. This organization
must continue to make efforts to put its activities in line with the ages,
characteristics and interests of the pioneers at basic secondary level, to
improve selection, training and operation of the guides and study the
amount of time these must dedicate to Pioneer activities. These aspects
should continue to be high priority. Likewise, the UJC must give constant
attention to all aspects of the Pioneers' work.

During the past school year a process of analysis was developed with the
ninth grade Pioneers with a view to making decisions regarding
recommendations that the most outstanding consider possible entry in the
UJC. The Pioneer organization thus contributes to better training and a
deeper evaluation of youths, which makes it possible for new graduating
classes of young communists to call for higher demands and quality.

Pioneer installations have increased. We have a nationwide stable
enrollment of more than 84,000 Pioneers in scientific-technical interest
circles oriented toward the vocational training developing in the Pioneers'
circles and palaces. Of these, 45,000 belong to the new Ernesto "Che"
Guevara Central Palace, one of the most useful and beautiful works built
during the 5-year period.

During the past 5 years, 1.4 million Pioneers enjoyed the camps which the
nation currently has. Naturally, this number includes Pioneers who
participated more than once.

In summary, we have made progress in complying with the objectives of
Pioneer installations. We obtained proof of the better utilization of
abilities, a greater number and variety of activities and higher results in
the continuity of the student education process.

We must continue to give careful attention to the camps, circles and
palaces so that they may fully comply with their high social
responsibility.

At present, the country has 484 school vegetable gardens and 630 plots of
land where 195,700 Pioneers carry out productive activities. This has
contributed positively to the children's labor education.

Nevertheless, it is necessary that those responsible for their execution
assure their growth and stable operation. In our country, children, whom
Marti called the hope of the world, are the guarantee for a future of
development of science, technology, higher culture and the impressive
advance of the communist conscience.

Our Pioneers, the sure future of the revolution, grow up surrounded by all
of society's affection and attention. In the future we will not scrimp on
energy and resources to achieve increasingly greater blossoming of all of
their marvelous abilities.

We are proud of the strength, prestige and capacity for organization and
political education and struggle of our mass organizations, among which we
also include, by the way, the FEU, FEEM and Pioneers. Thanks to them, the
bond between our party and the people becomes extraordinary stronger. They
have been present in the great battles of the revolution. Socialism is not
built at the doors of Yankee imperialism without a vigorous and vibrant
people. Without them, it is impossible to conceive, alongside the party,
our march toward the fatherland's heroic and shining future. [Applause]

Social organizations continued to broaden and improve their role in meeting
to the specific problems of diverse professional sectors of the nation.

The National Union of Cuban Writers and Artists [UNEAC] held its second
congress and has developed constant work to promote artistic and literary
activity in close coordination with cultural organizations. In this phase,
its leadership team was strengthened. It improved considerably the work of
its different sections. Its prestige has grown and its international bonds
have been broadened. Affiliates were created in various provinces and their
establishment in others is being considered.

In the next period, the UNEAC should gain in its organization and in the
depth of its work and should bring its members closer to the tasks of
socialist edification.

The Union of Cuban Journalists also held its fourth congress and has done
great work for professional, political and ideological improvement of
journalists as well as their increasingly efficient contribution to the
tasks of the revolutionary press. The organization's decisions are oriented
toward deepening even further all of its activities and emphasize
journalists commitment to exercise analytical, militant and creative
journalism.

The Union of Jurists and the National Association of Cuban Economists were
established. These represent two important professional sectors of the
nation with growing roles in the development of our society. The other
professional and social organizations year after year enrich their work
content, Our party will continue to offer them the attention and support
they need. [applause]

[Havana Domestic Service begins coverage of this main report segment
already in progress]...universality and historical significance. The
preparatory tasks and its celebration were carried out with determination
by the Union of Young Communists with the cooperation of the mass and
social organizations, the state's organizations and all our people under
the direction of the party.

The special emulation undertaken for the 11th [world youth and student]
festival left valuable experiences in the mobilization of the people and
promotion of economic and social plans. The fundraising was a popular
triumph. More than 78 million pesos were raised, a figure which more than
surpassed the goals and made it possible not only to defray part of the
expenses for the festival in national currency, but also will help to pay
for new palaces and camps for pioneers and other social projects in the
next few years.

In the days of the festival, the children and youth code was promulgated.
Because of its formative content, it requires greater dissemination and
attention by the organizations which are involved in its practical
application.

The UJC also has made advances in fundamental activities aimed at
strengthening the function of its leading organs and grass roots
organizations. However, insufficiencies still are being manifested,
primarily in the systematic exercise of criticism and selfcriticism, and in
linking of UJC members with the other youths whom the UJC should mobilize
to tackle united the tasks at each school or work place.

During the period that has passed since the first party congress, the UJC
improved the quality of its growth, increased its membership among workers
and paid particular attention to the exemplary behavior of young communists
in the student sector. The age for membership in its ranks was extended to
age 30. The category of candidate for membership in the organization was
established for young students.

The UJC increased its membership as a result of its growth work and in June
1980, it reached the figure of more than 422,000 members and candidate
members, or 83,000 more than it had in December 1975.

The organization fulfilled the first party congress guideline of placing
emphasis on growth from among young workers and it reached the figure of
79,000 members of this category. This practically doubled the number of
workers who were members in 1975. There also was an increase of 25,000 new
members and candidate members from the student sector.

As a significant piece of information, we should note that young females
today represent 41.8 percent of members, while it was 30 percent in 1975.

Among the professional cadres of the UJC, the proportion of females
currently is 14.3 percent as opposed to 5.3 early in the past 5-year
period. This percentage still is low.

The UJC must continue to apply the policy established for its growth and
give priority to workers directly linked to production, education and
services, including the young workers. Likewise, and in keeping with the
UJC role of working with all the country's youths, emphasis must continue
on the political and ideological training of young students and, as a
result of this, more young communists should be developed on the
inalterable basis of quality and merits in this particularly important
sector of the activity of the youth organization.

During this phase, the work aimed at developing future party members
improved. During the period, this allowed the admission to the party of
84,955 young communists who represent 35.5 percent of all new party
members. The youth organization must continue to work so as to raise
increasingly the quality of these promotions.

In the application of the UJC's policy on cadres, positive results have
been obtained in the composition of UJC leadership organizations. The
struggle must continue for a greater stability of cadres of the UJC,
organization of pioneers and other student organizations.

The UJC has worked to complete the tasks it has been assigned for the
country's economic development. Outstanding among these tasks was the shock
projects movement of which seven have been completed. Work is in progress
on 17.

The youth technical brigades were strengthened. They already have more than
100,000 members. The brigades were expanded to cover other areas of
economic and social development and the objectives established for 1980
were overfulfilled.

Our young workers should participate more actively in the daily struggle
for production and, with their initiatives and enthusiasm, they can
contribute to the successful fulfillment of plans.

In the educational sector, our youth organization has aimed its work at
obtaining better results in school promotion rates and in teaching and
training activities. Progress has been attained on these aspects. However,
during the period, difficulties arose with the discipline of a small number
of young students as a result of their attitude toward studies and work,
toward the use and care of public and individual property, and toward the
fulfillment of elementary standards of conduct and social coexistence, as
well as with the militancy and intransigency with which part of our young
communists should reject these manifestations.

Particularly during the most recent period where the process of
intensifying revolutionary awareness at our universities stands out, show
the prospects for appropriate political and ideological work with the
students. The UJC must raise to the maximum its concern over and its
attention to any indication of weakness, softening or inconsistency that
may emerge among the students.

In the development of the UJC ideological work, as well as of the student
and pioneer organizations, the work in support of defense tasks and
patriotic-military education has been significant. Among the latter, the
especially outstanding ones are those activities which, with originality
and in an attractive manner, take the young people to the natural scenario
of historic events. During the current 5-year period more than 300,000
young people have participated in such activities which bring them close to
our people's heroic past of struggles.

The Constitution of the Association of Patriotic-Military Education assigns
new dimensions to this task and makes it possible to unite efforts and
obtain superior results. Furthermore, a system of publications has been
organized to further assist in channeling more completely the interests and
concerns of children and youth and bringing to them the revolution's ideas
in a pleasant manner adhering to their characteristics.

It is necessary to examine, within the country's possibilities, the
solutions which will allow us to improve quality, increase the number of
publications, reduce delays in publication and overcome the difficulties in
circulation. The daily JUVENTUD REBELDE, which commemorated its 15th
anniversary this year, has played an important role in mobilizing the youth
and has reflected the interests and principal activities of the young
generation in building socialism and, at the same time, has continued to
improve its position as a result of the vigorous drive they have made in
the past 5 years. Membership has increased to more than 5,000 creative
young people, new quality work and a greater participation in national and
international activities.

The party's attention has been directed at the UJC's organizational
strength, at the dissemination of its activities and initiatives, at the
continued strengthening of its influence over the country's youth. Our
objective is that the UJC, as is the case with student and pioneer
organizations, continue to develop still further its personality and own
role and be capable of working actively, enthusiastically and
enterprisingly in the fulfillment of its tasks.

To this end, the improvement of methods and work style used by the party in
its relations with those organizations is very important. It is
particularly necessary that, in examining regularly the youth's and
students' work, our leadership organs and rank-and-file pay special
attention to those aspects where there are difficulties. It is essential to
supervise the adequate use of the means that have been established for
development of ties between the party and those organizations.

A role of positive influence can be played by the party members working
with UJC leadership organs and rank-and-file committees to which they must
give their highest degree of attention. Our party must remain alert to
detect in time any insufficiency in the work of the UJC, student
organizations and the Pioneers, to learn with the greatest accuracy their
problems and to help them adopt measures with their own revolutionary
intelligence and sensibility to correct those insufficiencies.

We have limitless confidence in our youth. Young people make up the ranks
and schools of our glorious Revolutionary Armed Forces and, as followers of
the heroic combatants of our rebel army, defend with firmness,
determination, discipline and courage the gains of our people.

Day after day, under conditions of extreme difficulty and adversity, young
people guard our beaches and coastline, confront the enemy who has
infiltrated or is under cover and feel great honor in serving as members of
our Interior Ministry. Today, right now, heroic and selfless youths occupy
their combat posts in the wastelands of Ogaden, in the trenches of Lubango,
in Cabinda and many other places. [applause] There they have their Sierra
Maestra. There they defend the right of those peoples to have freedom,
food, dignity, life. They struggle for them and for us. They struggle for
the revolution and socialism.

Young people are a large part of our exemplary and selfless
internationalist workers who, stationed in more than 30 countries in
Africa, Asia and Latin America, far from their families and under hard and
difficult conditions, offer their services honestly, quietly and honorably
to the other peoples. [applause]

Hundreds of thousands of our workers are young people who day after day
give their best effort at the factory, shop, classroom, countryside and the
sea to help advance the revolution. The revolution has not concluded. On
the long path of history it has barely begun to move. The development of
science and technology, the full conquest of nature, the attainment of a
superior social and political consciousness, the fulfillment of the
internationalist duty, completing building socialism and advancing toward
communism are the fundamental objectives ahead of the new generation. It
will be as equal to its time as were Cuban youth of other eras. Better
prepared in all senses, it will be a worthy heir of today's revolutionaries
and will repeat many times the glories and victories of our people.
[applause]

Our Communist Party, the best fruit of our revolution and the best
guarantee of its historic continuity, has come to this second congress with
highly valuable accomplishments. For example, we are proud that we have a
much stronger party, better organized, with greater experience and culture
and having a deep-rooted and indestructible stability in the love and
respect felt for it by the working masses.

During our first congress, special attention was given to the social
composition of the party ranks beginning with the working credentials of
its militants and those trying to join it, as well as to the need for
directing its growth efforts toward the more important sectors of the
country's economy and sociallife. Likewise, the necessity to achieve an
increase in women's representation in party ranks to the degree of the
possibilities and conditions existing in each place was evaluated. In
fulfilling these objectives, during the current 5-year period a broad
process of growth was developed which made it possible to reach a total of
434,143 in July 1980 from a total of 211,642 party members and candidate
members on 31 December 1975. [applause] This means that in this 5-year
period our party ranks have doubled. In the midst of this great effort, the
will to maintain quality has been the governing principle in determining
admission into the party ranks.

Our leadership organs and the rank-and-file organizations have zealously
observed this principle. It must be noted that the increase in our
membership came basically from the sectors to which priority had been
assigned, especially in the sugar industry, the rest of the industrial
sector, transportation, education and construction. It is also important to
note the results attained in the livestock-agricultural sector as well as
in public health. The growth developed in this period of time has made it
possible for the party nucleus to grow from 20,344 in December 1975 to more
than 26,500 today, [applause]

It is a very positive fact that in the past 3 years alone new rank-and-file
organizations were established in 3,195 centers. Of these centers, 2,222
are devoted to material production and 808 are educational. Doubtlessly
this factor has made it possible for our party to broaden still more its
direct influence among the working masses and its possibilities of
supporting and controlling the work of the centers in which it operates.

It is significant to note the improvement achieved in recent years with
respect to the party's labor composition. The workers directly linked to
production and services, who in December 1975 represented 36.3 percent of
the members, today are 47.3 percent of the total. In absolute figures, an
increase greater than 2.9 times has been attained compared to 1975. Thus,
the objective that the workers in these labor categories should become the
fundamental nucleus of the party ranks, in accordance with the contents of
the thesis on internal affairs adopted by the first congress, has been
fulfilled.

This growth has also made it possible for party members and candidate
members who are tied to production and services or education, including
professionals and technicians, to now represent a significant majority
among the membership, that is, 62.3 percent of the total. It is
unquestionable that these results positively reflect on all party work,
ensure that the party's social composition will continue to correspond with
the more revolutionary class of society and make it possible for us to
exercise a greater influence over the working masses. It is necessary to
point out that, due to the great number of members joining the recent
years, a systematic and consistent effort must be made in the future to
educate them in the discipline and work habits of the organization. In
addition, it will be necessary to continue to give priority attention to
the party's recruiting and growth efforts for the purpose of maintaining
and continuing to improve the labor composition which we have already
achieved.

The growth developed in this period of time also made it possible for the
women's representation in our membership to be raised from 14.1 percent in
December 1975 to 19.1 percent in July 1980. It must be noted that attention
given by the party leadership organs to fulfillment of these objectives
required an intense and difficult effort in recent years, mainly on the
part of rank-and-file units and municipal committees. The fact that 35.5
percent of new admissions into the party during this 5-year period were
recruited from the UJC, which indicates that, despite the broad growth
effort developed during the period the UJC continues to be one of the
principal sources of party members, is very positive.

In the 5 years elapsed since the first congress, the party rank-and-file
organizations and leadership organs have honorably and adequately used the
principles contained in the bylaws and regulations dealing with
disciplinary sanctions.

During this period of time a better use of internal sanctions has been made
in order to make them serve as a serious warning in educating all
communists. During these years, there have been more sanctions of an
internal nature than those leading to expulsion from party membership. In
each case the party has acted under the principle of not being tolerant or
implacable when militants or candidate members make a mistake. We must
acknowledge the fact that criticism and self-criticism are not yet being
practiced to the degree required by the daily affairs of party
rank-and-file organizations and leadership organs despite the fact they are
essential in facing up to and solving the weaknesses and deficiencies
resulting from individual. and collective activities of our cadres,
militants and candidate members and, very especially, in leadership organs
and rank-and-file organizations.

Following the agreement adopted by the Central Committee Secretariat in
connection with this matter, some encouraging results have been observed.
It is necessary that the party organs and organizations continue to lend
special attention to the rigorous fulfillment of this norm of our party
activity. The party is determined not to take one step backward in the
struggle against wrongdoing, against all weaknesses and deficiencies and to
maintain with firmness and discipline from its militants and candidate
members so that they serve as an example in educating society.

Beginning on 1 January 1976 the party bylaws adopted by the first congress
went into effect. During all these years our cadres, militants and
candidate members became aware that the bylaws are the fundamental law in
party life. Studying the bylaws and the effort to apply them rigorously
became a daily task for all Cuban communists. Here is a great awareness on
the need for loyally practicing democratic centralism as an essential
condition for party ideological and political cohesion as well as unity of
action. There is also a profound understanding in connection with the
importance of the fulfillment of the rest of the Leninist principles on
organization and leadership established by the bylaws.

By order of the first congress the regulations which, in accordance with
the standards outlined in the bylaws, make feasible and guarantee the
fullfillment of the bylaws' contents, were prepared and implemented. Great
progress has been made by the cadres, militants and candidate members in
the study of the bylaws. The application of these documents has contributed
to the raising and deepening of the party role and work at all levels by
the leadership organs and rank-and-file organizations in their relations
with the state agencies, UJC and mass organizations.

The party should continue to work to attain the efficient use of the
different mechanisms and guidelines it needs to supervise the UJC and mass
organizations because they are the irreplaceable vehicles to materialize
its necessary link with the working masses and people in general. Party
work in the economy has been a factor of significant importance in the
advances and successes achieved in the field of the economy. A sustained
and growing effort can be observed in this sphere of control activity,
coordination and support for the fulfillment of the country's development
plan.

The actions of the party membership, rank-and-file organizations,
leadership organs assisted by auxiliary bodies at all levels have been
directed at stepping up and consolidating the system of economic management
and planning, improvement of the economic leadership's mechanisms and
raising the level of the quality of production. Great efforts are currently
being made to further raise the level of the role of the vanguard
detachment in the effort of leadership, organization and economic
efficiency, striving, of course, to strengthen the authority of the
administration and moving forward the economic plans, placing special
stress, particularly, on priority sectors of the economy. The main ones
among those efforts are the activities dealing with cane agriculture and
sugar industry, agriculture in general and cattle industry, port work,
construction work, the investment and industrial process, other important
activities of industry, transportation and services, as well as the proper
use of manpower and material resources with the consequent increase in
production and productivity.

It will be necessary to keep moving toward this goal, to continue improving
our mechanisms of economic management and adequately guide the whole
productive process in accordance with our policy of economic exigency and
efficiency.

It is important to continue to strengthen the ancillary sections of the
administrative organs with capable cadres. In the particular case of
sections adjunct to the Central Committee, we must strive to make the
efficiency and quality of its cadres increasingly contribute to facilitate
the work of the Politburo and the Secretariat. Among other things, control
and advisory activities developed by the higher organs for the lower
organs, including the rank-and-file organizations, have had their effect in
improving the party's methods and styles of work during the [5-year]
period. Communication with the cadres and militants of the party through
reports on the negative and positive experiences that have come up during
work in order to generalize or eradicate them, as the case may be, has also
been positive.

Despite the aforementioned, there are still difficulties. We must improve
the training of the party's cadres and militants so that they may better
carry out their functions as well as apply other measures so that we may
solve the deficiencies that still exist.

With regard to the functioning of the party's management organs and
rank-and-file organizations, we must note an increase in collective work in
all areas, the regularity of meetings and the understanding gained that it
is the plenums of the committee which are called to learn about and decide
the most important matters within their jurisdiction. However, these
organizations and management organs, including their plenums, do not always
analyze, discuss and decide on fundamental problems in the most suitable
manner. The party must continue to work systematically on this.

The assemblies held by the rank-and-file organizations and the meetings of
the party's mid-level leadership as part of the process preceding the
second congress critically analyzed the progress made and the difficulties
observed in the work in each place or territory. The directorates of the
party's nuclei and committees were elected and the plans or work objectives
for the duration of their mandates were approved. These processes were
characterized by the broad and free participation in the analysis and
approval of the various matters discussed.

The cadres policy is firmly linked to the party's leadership role in the
country's economic, political and social spheres. During the 5-year period
the necessary steps were taken to initiate the execution and control of the
directives approved by the first party congress in this field. At this
stage, the main emphasis was placed on the selection and placement of the
cadres. We must continue working so that the movement of cadres is carried
out in accordance with established norms, taking into account all objective
and subjective factors. These include political, ideological, moral,
cultural, technical and professional qualities as well as the indispensable
practical experience. At times, these factors have not been evaluated with
the necessary thoroughness when formulating a proposal. We must be careful
so that situations of this nature will not be repeated henceforth.

An area in the cadres policy that has not received the necessary attention
is the preparation of the list of reserves that makes it possible for us to
select the best qualified comrade for each post. In the coming years, it
will be necessary to work on this aspect. The larger the list of candidates
from whom we can select the cadres, the better we will be able to promote
the best qualified. We must refine the mechanisms that enable us to obtain
the necessary elements for a more thorough and objective evaluation of each
cadre and make the evaluation reflect the results of his work in the post
he holds, his achievements, deficiencies and potential.

The party, the UJC and the mass organizations have worked to implement the
directive that their leadership organs have an adequate proportion of
workers involved in production, teaching or services. We note that in the
last assembly process carried out in 1980, these workers made up 33 percent
of the provincial committees and 53 percent of the municipal committees.
These figures speak for themselves. When the 1979 assembly process
concluded, the UJC made up 33.7 percent of the provincial committees and
52.4 percent of the municipal committees.

In the last assembly processes, the mass organizations have also met the
proposed membership figures in the composition of their leadership organs.

These results will undoubtedly translate into a more adequate classist way
of looking at things, more discipline, collectivist spirit, selflessness
and sacrifice. They will also help these organs to devote more attention to
the rank and file.

The effort made in this period to fulfill the guidelines set out by the
cadres policy reflects, in a general sense, some progress. However, we must
work with greater firmness and depth in this area.

The party's schools, whose 20th anniversary we celebrate this year, have
done a positive job in the political and ideological education of the
cadres. During this 5-year period, 24,512 comrades have graduated and 519
obtained the social sciences degree. Considerable progress has been
observed in the increase in the scientific level of the program as a result
of the sustained improvement of the teachers. More than 90 percent of the
teachers have a higher degree or are working to obtain it. The work of the
UJC and mass organizations schools has improved noticeably. The schools
have also contributed to educating more than 1,200 students from other
countries who, along with a theoretical education, have learned of Cuba's
experiences in the building of socialism.

These results notwithstanding, the party, UJC and mass organizations
schools must continue to improve their work so as to reach the scientific
level required by the increasingly complex education of the cadres for the
building of socialism. The political study groups program has continued to
evolve with satisfactory results in raising the political and ideological
levels of the militants of the party, the UJC and the people as a whole. We
must continue to improve its quality and eradicate the formalism that at
times appears in the course of some study groups.

During the 5-year period, 81,324 party militants and candidates have taken
courses in Marxist-Leninist theory. Of those, 16,034 graduated from the
basic courses of the party's provincial schools and 65,290 from the
political-ideological improvement centers. The experience thus gained
confirms that these centers are the basic vehicle for the Marxist-Leninist
education of the party's members.

More than 2,000 comrade teachers and directors work in them. Most of them
are party activists. The number of centers will be increased in the coming
5-year period. Their teaching level will be improved. Courses for
candidates to party membership, initiated in September 1976, have been a
valuable way to educate these comrades. The study of Marxism-Leninism by
the workers of the press, art, education and sciences is still
insufficient. The state and social institutions and the corresponding trade
unions must devote more attention to this important task.

During the 5-year period advances have been made in the school levels of
the party's cadres. The first congress agreement that the majority of them
needed to reach the higher intermediate level was fulfilled--75.5 percent
of them now have reached this level in comparison to 16 percent in 1975.
The cadres who have not yet reached this level must continue studying to
reach it. The education of the party's militants and candidates is also
very favorable, especially if we compare it to that which existed in 1975
when 60.3 percent of the party's members had only an elementary school
education. We have been able to have 80.7 percent of the militants fulfill
the agreement of the first congress--in other words, they have an eighth
grade education or more.

These achievements notwithstanding, all the party's leadership organs must
push study so that the majority of the militants who have no physical or
mental impediments may get a ninth grade education. It is also important
that they instill and encourage technical-professional education and study
at the work centers. We must reiterate that to study, to learn is a
permanent duty of all communists.

As a result of the agreements of the first party congress, the teaching of
Marxism-Leninism has developed favorably in the national education system.
Hundreds of teachers have been trained and a great effort has been made in
other areas of the work. In order to eradicate the deficiencies that still
exist and increasingly improve this type of activity, we must pay utmost
attention to the training of teachers to guarantee that in the coming
5-year period the teaching of Marxism-Leninism is extended to 100 percent
of the student body. [We must] increase the level of training of these
teachers, develop the methodological counseling they require and solve
their book needs.

The results of Marxist-Leninist theory research in this 5-year period have
fallen short. Research must be improved. The amount of research must be
increased. We must ensure that the problems selected are closely linked to
the needs of socialist construction in our country, strengthen scientific
institutions engaged in research and publicize and implement the results
obtained.

The party's control and review committees at the national provincial level
have been in operation for the past year and a half. We have begun this
work with a reduced number of cadres, making careful and thorough analyzes
of each case and hence gain the necessary experience to extend an activity
as delicate as this. The results obtained are positive and encouraging. The
purity of the party has been rigorously defended while some errors and
injustices against militants and candidates have been redressed. Review
work has played an important role in the control of finances and resources
administered by party. In the coming years, the work of these organs,
guided by the most absolute sense of justice, will continue to be developed
and broadened.

We are pleased to state that at the top levels of the party, the principles
of collective leadership have been solidly applied. Both the Politburo and
the Secretariat of our party have met hundreds of times these past years.
The Central Committee has unfailingly held the corresponding plenums. The
most varied topics related to the state, party and international affairs
have been analyzed collectively. No important matter was decided without
this method. The rigor with which this essential principle of
Marxism-Leninism is observed within our leadership is really exemplary and
a source of pride. There has not been the slightest sign of splintering
within our leadership and the principles of internal democracy, democratic
centralism and the strictest discipline rule the life of our party.
[applause]

We have grown a great deal in recent times and we have grown well. We have
not sacrificed nor will we ever sacrifice quality for quantity. If today
there are more of us who shoulder this high responsibility of being
militants and candidates to membership in the country, this is only a
measure of how the revolutionary spirit and exemplarity have grown within
our people.

What difficulty will we fail to overcome with this impressive force? We
must, above all, preserve the revolutionary morale, authority, prestige and
example of the communist militants. And we will increasingly attain this to
the extent that our role as communists consists in being first at work,
sacrifice, selflessness and revolutionary modest. [applause]

We will be the vanguard, not because of our opinion of ourselves but
because of the people's opinion of us.

It is a difficult but worthy and stimulating task to be the vanguard in a
nation of vanguards; [applause] to be communists in a nation of communist.
[applause] The deepest and most permanent link with the masses was, is and
should always be the compass guiding our party. [applause] Let us all
pledge to become guardians of the revolutionary purity of our party, our
unity and our ideology. [applause] We will not only serve our own
fatherland, but also the cause of socialism and communism in the world.

In a certain period of this 5-year period, it was evident that our country
was being infected by some bugs. Perhaps some thought that the
institutionalization, the socialist legality, the establishment of people's
governments and the implementation of the economic management and planning
system would by themselves effect miracles; is thought that things would
automatically go much better without the unavoidable and fundamental effort
of man.

Something worse developed: signs of progressive weakening of the spirit of
austerity, a softening, a lack of urgency; privileges, accommodation and
other manifestations of this sort became apparent while work discipline
declined. The worst of our enemies could not have hurt us more. Was our
revolution by an chance falling into a degenerative process at the very
doors of our imperialist enemy? Was this an inexorable rule for an
revolution in power? This could not be so under any circumstances. Nor
could it be allowed. This showed that firmness can never be neglected in
any revolution. The problems were publicly discussed. Measures were taken;
we began to overcome those harmful tendencies, but this is not enough. We
must be permanently on our guard and keep our state of alert at the highest
level and observe the most rigorous firmness against all petit bourgeois
spirit, accommodation, relaxation of revolutionary discipline and any sign
of corruption, no matter how insignificant it may seem. [applause]

This should serve as a warning and example. The people's unanimous support
in the struggle for firmness and against all manifestation of softening and
accommodation, demonstrates how deeply the moral Principles of the
revolution have taken hold in our people and that our process, far from
weakening, is constantly strengthening. Eternal vigilance is not only the
price of freedom, as someone said, it is also the price of revolution.
[applause] The communist and international consciousness of our people has
unquestionably deepened in recent years. When we say this we are not only
or mainly speaking of the important progress registered in cultural and
theoretical education, we are speaking, above all, of the specific actions
by which our masses demonstrate this consciousness. We find throughout the
country today a superior spirit for work, organization, firmness,
combativeness and revolutionary intransigence. This is especially evident
in our working class. The attitude of the intellectual workers has also
been sparkling. Tens of thousands of teachers, professors, physicians and
other professionals and technicians are engaged in selfless work in this
country, and they enthusiastically volunteer to go on difficult and
honorable missions abroad. Hundreds of thousands of FAR combatants and
reservists have expressed their fervent wish to participate in the
internationalist aid given to fraternal countries that are the victims of
aggressions. Like them millions of fellow countrymen are known today by a
stance in life that is genuinely proletarian, austere, collectivist, honest
and disciplined.

This does not mean, however, that we have always done our best in our
political and ideological work, much less that we can act as if we were
triumphant and sit back with our arms crossed. We must understand the
characteristic circumstances in which Cuba has for over 20 years waged its
confrontation with imperialism in the realm of ideas. The presence, a few
miles from our coasts, of the richest and most aggressive capitalist
country in the world--the paradise of individualism, gambling, drugs,
prostitution and other alienating social disgraces--forces us to
courageously accept an open and permanent challenge. Historically, the
United States was the great enemy of our nationhood. Since the first half
of the 19th century, Spanish colonial domination on one hand, and on the
other hand the existence of a native-born class that owned most of the
coffee and sugarcane plantations, and hundreds of thousands of slaves,
engendered in our country powerful annexationist currents that opposed
independence. For many of those landowners, it was more important to
safeguard the slave system by joining the United States than to have
national independence. They feared a slave uprising in a fight for
independence and the loss of their economic and social privileges, or that
Spain, pressured by England, would free the slaves. This explains why Cuba
was the last country in Latin America to become independent of Spanish
domination, almost 100 years after the rest of Spain's colonies had become
independent.

Annexionationism, however, failed to halt the development of a strong
patriotic movement that demonstrated in the heroic wars of 1868 and 1895
its strength and its desire for freedom. Yankee intervention, the Platt
Amendment, the seizure of the country's wealth, and the establishment of a
neocolonial regime thwarted the desires of our people and translated into a
heavy blow to the national spirit. In practice we were annexed to the
United States. The Yankee system, ideology, laws, culture, habits, customs,
prejudices and vices became our neocolonial and dependent way of life. Our
economy became simply an appendage of U.S. monopolistic capital. We became
a sort of Yankee property.

Prior to 1959 innumerable Cubans wanted to emigrate from the underdeveloped
country to the metropolis. Numerous restrictions imposed by the United
States limited this economic migration to a few tens of thousands. When the
revolution triumphed, the United States opened its doors wide to receive
war criminals, torturers, embezzlers of the public treasury, landowners,
house owners, big businessmen and bourgeoisie of all kinds. But it also
made huge efforts to deprive us of engineers, physicians, managerial
personnel and even mid-level technicians and skilled workers. It was thus
taking advantage of being the world's most developed and richest country,
with much higher wages and standard of living than Cuba, to try to bleed
our people of skilled workers and to try to do away with the revolutionary
process.

It linked this policy to the economic blockade, to threats and to all types
of aggression. The revolution accepted the challenge bravely and authorized
the departure of all those who wished to leave. We were ready to create a
new fatherland and to carry out the socialist revolution with absolutely
free and willing men and women, as we devoted ourselves to the task of
developing our universities and other study centers to train hundreds of
thousands of experts and skilled workers.

Millions of people--the vast majority of our people-decided to live here
faced with the economic blockade and threatened with extermination, rather
than abandon their fatherland. It was our socialist revolution, with its
heroic and self-sacrificing struggle, which thus forged once and for all in
Cuba the national and patriotic spirit. A new generation of doctors,
engineers, professors, teachers and technicians of all kinds has been
trained in the years of the revolution, alongside those other workers and
intellectuals who remained loyal to the fatherland. Today we have an
infinitely higher number of these men and women. They are most capable,
more aware and more revolutionary. Today our technicians even serve in more
than 30 countries.

But imperialism has not stopped fighting against the national Cuban spirit
and continues to put it to the test. To do so, it crudely flaunts its
wealth, which is primarily derived from plundering the resources and
exploiting the labor of the world's underdeveloped countries. It constantly
resorts to bribery and urges our country's citizens to commit treason and
to desert. It also takes advantage of the fact that tens of thousands of
families are separated. While, on the one hand, it stringently restricts
legal trips to the United States, on the other--for brazen publicity
reasons--it encourages, publicizes and justifies as heroic acts the illegal
departures, regardless of the fact that they might have been by means of
hijacked vessels, of hostages and of horrible murders.

Despite the gigantic efforts made by the revolution in the area of economic
and social development, especially in education, there are still some
social remnants of the past--individuals lacking all national roots. To
this may be added the fact that socioeconomic conditions in our developing
country still generate antisocial, displaced and lumpen elements, who by
their very nature are susceptible to the lures and the ideas of
imperialism. Therefore, between the imperialist enemy and the Cuban
revolution there is and will be for a long time to come a bitter
ideological struggle which will be waged not only in the arena of
revolutionary and political ideas, but also in the field of our people's
patriotic and nationalist feelings.

They will not resign themselves to the idea of a socialist and
revolutionary Cuba, to a Cuba which liberated itself forever from the
United States, to a Cuba which resisted and gained stature in the struggle
against the Yankee giant, to a Cuba where patriotic feeling is deeper,
stronger and more lasting than ever.

It is true that our country lives humbly, without luxuries or waste, but we
have an unshakable faith in the fairness of our ideas, our dignity and our
moral character, and we feel capable of challenging with these virtures all
the rottenness of the so-called imperialist consumer society. [applause]

This time the imperialists have run up against the fiber and muscle of our
people. [applause] This time they were not able to snatch experts and
skilled personnel from us; this time they had to take the dregs of our
society. [prolonged applause]

The combative people's marches and the masses' participation in reaction to
the provocations of the Peruvian and Venezuelan Embassies, to the Mariel
operation and to the Yankee military threats will go down in history. Never
before in the life of our fatherland had such gigantic mass mobilizations
taken place. Once again they underestimated the level of awareness attained
by our people. The revolution and the masses decided to accept the
challenge once and for all. We reacted to the imperialist propaganda
campaign in connection with the events at the Peruvian Embassy with utmost
serenity. The antisocial elements themselves, who initially were described
as dissidents by the capitalist press agencies, showed what they really
were and all the lies were shown to be completely ridiculous. The people
gave a show of strength, unity, awareness, fighting spirit and discipline
which cannot be surpassed. The youths in particular distinguished
themselves in this great ideological and political battle and won with
honor their first revolutionary laurels. While Cuba was engaged in the
biggest cleanup campaign in its history, the masses and the revolution
gained extraordinary strength. [applause] This process deepened the
patriotic spirit and the desire to defend at any price the principles of
socialism and proletarian internationalism. It also helped to promote the
struggle for production and discipline, and the efforts to solve our own
internal weaknesses. The enemy learned once again that it is impossible to
challenge our people with impunity. We look upon the struggle waged by the
masses in April and May of this year as one of the most important
political, ideological and moral victories achieved by the revolution in
its entire history. As we already have said, it is noteworthy that this
struggle had a favorable impact on national efforts to solve a series of
ideological problems that had been growing recently. The people's
repudiation of the scum also meant, to a great extent, a repudiation of the
lack of discipline, of social parasites, of easy living, of negligence and
of other negative conditions from which we were suffering. This attitude
was linked to the political, legal, wage and administrative measures
adopted during the last few months and has made it possible to increase
significantly demands and promote order among our society. Of course, this
is not a campaign which will be completed overnight. Our goal is to carry
out with utmost precision the efforts we have undertaken and to find final
solutions to these problems.

Under the current circumstances, it is not possible to make a final
assessment of the policy with regard to the Cuban community abroad. After
the profound anger stirred up in the bosom of our people by the events
resulting from the repeated provocations at the Venezuelan and Peruvian
Embassies, the visits have been curtailed to a minimum. Our policy in this
connection will depend on the attitude assumed by the new U.S.
administration. We will see whether Mr Reagan will or will not suspend the
rights of U.S. citizens to travel to Cuba. Visits to Cuba by those born in
this country must also be limited strictly to those who in no way
whatsoever have acted in a hostile manner against their native land, who
have not left the country illegally, and who are also capable of displaying
irreproachable respect for the revolution. [applause]

Drastic measures will be taken against those who try to engage in any
counterrevolutionary activity. We will renounce any considerations of
economic advantage related to these visits. [applause] One of the factors
which at one point contributed to a certain slackening in economic and
social activity was the frequent lack of a sufficiently critical and
self-critical attitude. As we have stressed, this phenomenon became evident
in various areas and also included the party to some extent. A formalist,
conformist and essentially petit bourgeois attitude of not finding fault
with anyone gained ground in certain areas, as if the revolution were not a
constant search to find fault with everything that is unfair and wrong
[applause].

In the area of administration this trend also had a negative impact on
labor discipline, on control and on the appropriate use of resources. It
has been said repeatedly and with good reason that our political and
ideological work cannot be performed in the abstract and must be
permanently linked to the specific economic, social, domestic and
international problems which crop up at a given time.

At the same time that we continue the theoretical training of the cadres,
the party members and all the people, and while we continue our unbending
defense of Marxism-Leninism and the struggle against those who distort it,
we are called upon to pay special attention to the economic education of
the workers within the framework of the principles and laws of socialism;
to the moral training of children and young people, and to strengthening
the communist and internationalist awareness of all our fellow countrymen.
We must continue to pay special attention to and promote voluntary work,
since it is an essential factor in creating the new attitude toward work
and society.

In a general sense, experiences during this last 5-year period reinforce
our conviction that factors of a moral nature must continue to hold a very
special place in our revolution. These make us invulnerable to bourgeois
ideology, strengthen our spirit to deal with the threats and aggressions of
the enemy, and turn the entire people into an invincible army, ready to
fight for their cause to their last breath.

Our party, aware of the importance of this factor, is waging a firm
ideological struggle. As part of that struggle, during the years since the
first congress we have systematically engaged in work involving plans,
campaigns, exhibitions and mass events dealing with or commemorating great
events, such as the 11th World Youth and Students Festival, the Sixth
Summit Conference of Nonaligned Countries, the 60th Anniversary of the
October Revolution, the Combative People's March and the joint Soviet-Cuban
space flight [applause].

The theme of the economic education of the workers has been prominently
discussed in our mass media and in all the party propaganda. However, we
must still go much further in this connection. Our propaganda must pay even
greater attention to the problems of production; it must disseminate the
best experiences and it must in general perform more in-depth and coherent
work. The ideological training of the masses, especially of youths and
children, in the principles of socialist patriotism and of proletarian
internationalism, requires systematic efforts in which the dissemination of
historical events plays an important role. These are aimed at showing how
our revolutionary process combines the purest national and patriotic
traditions with the universal principles of socialism, and how the Cuban
revolution is part of the worldwide revolutionary movement. To help in this
task the party has promoted the History Activists' Movement. The principles
of internationalism have been discussed widely and consistently through our
work of revolutionary guidance. We have made every effort to project a true
image of the Cuban revolution abroad; to bet forth our successes, our
weaknesses and problems, as well as the achievements of socialism in all
areas of economic and social activity.

Our people have made impressive strides in the area of political culture
and are receiving adequate information on the major aspects of the
international situation. We will continue to advance in our efforts to
educate all the people with regard to the scientific laws of nature and
society in order to uproot old prejudices and at the same time to begin to
instill new customs and habits tending to strengthen fraternal and
solidarity relations within our socialist society.

In recent years the party has increasingly developed the tools for more
effective work in the area of providing information to the cadres and party
members regarding important problems requiring their attention. We now have
a system involving 7,000 nonprofessional lecturers which has considerably
helped in this task. We are working to assure the adequate theoretical
training of propagandists and to systematically improve their work.
Regarding the party's editorial work, in recent years we have published
more than 600 titles on political and ideological subjects. We have
implemented a far-reaching plan to disseminate and promote this literature
through the establishment of libraries at the level of our rank and file
organizations. The party's graphic propaganda has made great strides, but
still has room for improvement in its content and artistic quality. We have
an effective system for organizing and holding events, exhibits and other
political activities. We have upheld the work of the people's opinion
groups as a way of looking into and learning about the people's ideas on
specific problems. This activity can be an effective tool in the party's
work and requires further development.

The party has given priority attention to improving the quality and the
political and ideological level of what the mass media disseminates. In
order to better fulfill the thesis of the first congress regarding the
press, radio, television and the cinema, we have approved certain
documents, among them the politburo resolution on the attention to be paid
to the party newspaper and to other press organs; the norms for the
circulation and distribution of publications; the definition of the format
and design of newspapers and magazines; the policies pertaining to radio
and television programming; and the principles and norms of
counterpropaganda work.

During these years the mass communications media have made great gains in
fulfilling the tasks incumbent upon them in the area of our socioeconomic
development and in the ideological confrontation with imperialism.

Our press has continued to expand. A special effort has been made to give
each province its own newspaper, including the special municipality of the
Isle of Youth.

The daily circulation of these organs today amounts to more than 264,000
issues. New publications devoted to children and youth, to the workers and
to the dissemination of state and scientific information have appeared. The
circulation of the national press has grown and currently stands at 930,000
issues daily. The availability of newspapers now accounts for a national
average of eight readers per issue. The results of the efforts to
distribute 1.2 million issues daily and more than 5 million magazines and
tabloids every month are noteworthy. In accordance with the country's
capabilities, during the next few years we must turn our attention to the
need to modernize the technical bases of our press.

The newspaper GRANMA has distinguished itself in the fulfillment of its
mission to keep our people informed, to guide them, and to contribute
actively to their education and to strengthening their revolutionary
awareness. In addition to these important tasks, our Central Committee's
official mouthpiece has fulfilled the task of serving as a constant example
for applying the party's guidelines in the other mass communications media.
The magazine EL MILITANTE COMUNISTA has been able to publish more in-depth
and relevant articles.

Noteworthy in the development of radio and television are: the
establishment of new municipal radio stations; two specialized stations for
students in schools in the field; increased color programming on
television; and the merger of Channel 2 and Tele-Rebelde to take better
advantage of technical and human resources, Investments in equipment have
enabled both media to make great technological gains, especially with
regard to radio.

Radio Havana Cuba has maintained the high political, ideological and
professional level of its programming, broadcasting to the world in eight
languages the truth about the Cuban revolution. It has expanded its
programming by 27 percent despite a reduction in personnel. Efforts have
been made to improve the quality of programming and to fulfill the
agreements of the first congress and of the eighth plenum in this area.
Programs for children and youth, information programs, and programs on
cultural events have increased. Sports programming has been expanded and
diversified. The production of national television programs has increased
and this type of programming now accounts for 60 percent of all
programming. Dramatic series of acknowledged high quality have been aired,
although we must make a sustained effort to achieve greater stability. The
number of movies from the socialist bloc has increased in television
programming, as have programs transmitted by satellite. During the 5-year
period we instituted summer programming.

We are not completely satisfied, however, with the work of our press and
the mass media. There are still many weaknesses. We must improve the
quality of the work, both with regard to the information and with regard to
analysis and criticism.

Because of its importance to the party's ideological work, we must make
special mention of the efforts which have been made by the History
Institute of the Communist Movement and the Cuban Socialist Revolution. In
its 6 years of work, this institute has laid the groundwork for its
scientific activities and has been engaged in far-reaching historical
research. As a result of this research, valuable works have been published
and other important works are being printed or have already been edited.

In general we have made progress in the area of ideological work. But we
must continue our efforts and overcome the weaknesses which still exist. It
is important to improve the work of the party's rank-and-file organizations
in this area and to work so that each cell and each communist will be an
active defender and propagandist of party policy. It is also necessary to
make all ideological work more comprehensive and to use in a more coherent
manner the political education system, the methods and means of propaganda
and agitation, the mass communications media, the various forms of culture
and sports, and recreation and other channels for this work.

Ideology is above all awareness. Awareness means a combative attitude,
dignity, and revolutionary principles and morals. Ideology is also the
reason for the struggle against all that is wrong; against all weaknesses,
privileges and immorality. For all revolutionaries, the ideological
struggle today represents the frontline of battle, the first revolutionary
trench. Socialism is a new system in human history. Born barely a few
decades ago, its existence was threatened from the very beginning by
imperialist hostility, intervention and aggression. Fascism was brutally
bent on destroying the first socialist state when that state was barely 24
years old. The socialist bloc emerged from the ruins and rubble which the
Nazi hordes left behind them in the most heavily destroyed areas in Europe,
which were not part of the more industrially developed areas on the
continent.

The circumstances under which socialist ideas have had to forge their path
have by no means been easy or propitious. The enemy has never ceased
fighting against socialism by all available means. In the military arena,
it has forced socialist countries to invest vast amounts for defense. In
the political arena, it has never slackened in its efforts to subvert,
destabilize and discredit socialist countries. This reality cannot be
underestimated, and our country, which is so close to the United States,
should be the last to underestimate it. Only the most consistent
application of Marxist-Leninist principles can make us strong,
invulnerable, invincible.

Our state is a state of workers who exercise power in a revolutionary
manner. The party and its members can never lose sight of the strongest,
closest and deepest ties with the masses. They cannot lose sight of the
most stringent criticism and self-criticism. They cannot lose sight of
collective leadership, of internal democracy, of democratic centralism and
of the most stringent discipline. They cannot lose sight of austerity, of
the spirit of self-sacrifice, of unselfishness, of modesty, of honesty, of
a solidarity attitude and of the heroism which should characterize all
communists. A communist must be an indefatigable fighter; he must be
convinced of the unquestionable justice of his cause, studious,
hard-working and demanding; he must have deep commitments and be devoted
entirely to his people. The party only exists by virtue of the people and
for the people.

Bureaucratic methods and a petit bourgeois attitude are completely foreign
to its principles. Among the cadres, the party members and the people there
should be the strongest and most indissoluble ties, based primarily on good
example and on the certainty that a revolutionary lives and dies for his
people. Authoritarianism, demagogy, self-sufficiency, vanity,
irresponsibility--these are all inconceivable in a communist. A fraternal
and humane attitude should be one of his basic characteristics. Above all,
there should be internationalist awareness, which does not exclude the
strongest patriotism, but which recognizes that above the individual is the
fatherland, and above the fatherland is humanity. [applause]

A communist party in power could make or tolerate serious mistakes of
principle and those mistakes have always been very damaging to the
revolutionary process. History has demonstrated it. Real betrayals have
been perpetrated that have inflicted profound wounds on the world
revolutionary movement. Is socialism in a country irreversible? It is
absolutely irreversible if the principles are applied? Our people have
demonstrated that. In the face of Yankee imperialism itself we have not
been frightened by its might. We have not been blinded by its wealth. Its
ideology has not been able to penetrate our ranks. Its actions have not
destabilized us.

Isn't it true that we have made mistakes? Yes, we have made mistakes. Can
we say that we have been consistent in the strict application of each and
every principle? That we are exemplary communists, without blemishes or
mistakes even if made as a result of incapacity, indifference or ignorance?
No, we-are far from that. But the proven honesty and loyalty to principles
of the Cuban revolutionaries and their devotion to their people is beyond
question. Our party's close ties with the masses make it very strong, and
the consistent decision of applying its principles makes it invincible.
[applause]

On the other hand, in our country the Marxist-Leninist ideas are deeprooted
with the patriotic and heroic traditions of our people. For us, Cespedes,
Agramonte, Gomez, Maceo and Marti are inseparable from Marx, Engels and
Lenin. In our consciousness they are united as the patriotic and
internationalist thoughts, as the national freedom, equality and social
justice, as a country's history and world history, as the fatherland and
mankind.

The foundations of the country which today builds socialism were made by
our glorious forefathers with sweat, blood and heroism. In the fatherland
that they forged yesterday, today we are doing the same thing they would be
doing.

Let us follow the example of the great builders of the fatherland and the
creators of a new world. Let us loyally follow their ideas and there will
be no force on earth capable of separating our party from our people and
our people from the path of revolution. [applause]

In practice there is a lot to be created in building socialism and many
problems to be solved, but our concepts have already demonstrated
themselves to be superior and infinitely more humane than the capitalist
concepts. The course of history is irreversible. Capitalism with its
egotism, its crimes and its vices will disappear, as the feudal and slave
societies disappeared. Even though a country might regrees at times,
mankind will never regress.

Comrades, since the first congress of our party 5 years ago, important
events have taken place in the international economic arena, including the
gravest crisis experienced by capitalism since World War II, with
subsequent stagnation and inflation and the worsening of living conditions
in the underdeveloped world. During the past two decades imperialist
monopolies have expanded their operations to an ever-more gigantic and
internationalized scale. They have markedly increased their share of the
market and extended to practically all branches of production and services.
The enormous accumulation of capital of the manopolies was translated into
investments which gave rise to important changes in the structures of
economic activities of the developed capitalist world. The huge profits of
the monopolies also triggered the processes of economic internationalism
whose principal vehicle has been the so-called transnational companies,
imperialist monopolies characterized by the impressive magnitude of their
financial, technical and organizational resources, by the worldwide scale
of their operations, and by the degree of geographic and sectorial
diversification with which they carry out their activities.

None of these changes occurring in the capitalist world would have been
possible without the upsurge of monopolist state capitalism.

The increased merging of the interests of the monopolies and the state
apparatus has acquired a decisive importance during the past three decades.
The refusal of the government of the developed capitalist powers to make
the slightest concession to underdeveloped countries which have been
struggling for years for a new international economic order reflects the
role that the states play in the hands of the big monopolies, the ones that
are really interested in preserving an economic order like the present one
based on the exploitation and plundering of the natural resources and the
labor of the so-called Third World nations. The development of the
so-called military-industrial complex represents the most dangerous
expression of the rise in this merging of the interest of states and
monopolies.

The 1974-75 crisis gave rise to a subsequent period of economic instability
and stagnation coupled with a constant inflationary increase in prices. In
other words, the uncommon phenomenon of stagnation coupled with inflation.
The financial oligarchies dominating in the imperialist world have been
unable to return to the growth rates of the 60's and early 70's, or to
prevent the rise in unemployment. The predictions made by their most
reputable experts for the coming year and the year after are increasingly
pessimistic. And they have not been able to control inflation although, all
things considered, inflation is one of the resources used by the monopolies
to augment their profits despite the crisis, at the expense of reducing the
real wages of workers and at the expense of accentuating the unequal trade
with underdeveloped countries.

The unemployment rate of the countries that belong to the Organization for
Economic Cooperation and Development, OECD, grouping the principal
imperialist powers, including the United States, and other capitalist,
less-developed countries such as Spain, Portugal, Greece and Turkey, was,
according to official figures, 3 percent between 1960 and 1973. It rose to
approximately 5.2 percent between 1974 and the first quarter of 1980. This
means approximately 24 million unemployed. Predictions are that the figure
will rise to between 25 and 27 million by the end of 1981.

In the United States alone, more than 8 million citizens are out in the
streets looking for work. It is estimated that 30 percent of the labor
force in Latin America is completely unemployed. Unemployment markedly
affects those who are joining the job market for the first time, namely,
the young. In addition, this situation is more acute in the United States
among blacks, Hispanics and other minorities.

In general, the unemployment rate in underdeveloped countries normally
ranges from 15 to 40 percent of the population able to work. Lacking exact
statistics, we may assume that at present this situation is even more
extreme. Moreover, the rate of unemployment in the countries of the OECD
went from 7.9 percent in 1979 to 13.9 percent in mid-1980. Another element
in the current capitalist crisis involves what is already emerging as a
real crisis for neocolonialism.

The case of OPEC is revealing. The rise in oil prices generated a financial
flow toward the OPEC nations--unequally distributed, but nevertheless
impressive. This influx of resources, however, could not be fully utilized
by those countries owing to the characteristics of their socioeconomic
structures, the narrow range of their markets and their technical
limitations in absorbing more than measured does of productive capital. The
outcome was the emergence of a financial surplus which, according to
estimates, appears to have averaged some $36 billion a year between 1974
and 1978. It rose to $61 billion in 1979 and it will probably reach some
$115 billion in 1980.

Instead of being recycled in a manner to benefit underdeveloped countries,
these surpluses were basically directed to the developed capitalist
countries where they were used in short-term and high liquidity
investments, especially in the United States, Western Europe and the
so-called Eurodollar market.

As a result of these events, the developed capitalist economies were not as
negatively affected by the rise in oil prices, since the recycling of
surpluses enabled them to offset the corresponding impact on their balance
of payments. In contrast, underdeveloped countries which import petroleum
were not able to do this and were forced to endure not just the traditional
unequal trade--made worse by inflation--but also the high annual cost of
oil imports. The way in which OPEC countries with a surplus have acted,
however, does not diminish the historic importance of that organization's
actions.

The fact is that for the first time in the postwar era, a group of
underdeveloped countries dependent to varying degrees on capitalist centers
was able to deal a blow against neocolonialist structures, thanks to the
current correlation of forces in the world and to the support of the other
underdeveloped countries, reciprocity. The group has demanded its own price
for its basic export product and has changed the rules of the imperialist
game in a key sector. To the economic crisis has been added the crisis
which broke out in 1971-73 in the area of monetary relations.

This may be explained by the fact that although the current monetary crisis
was preceded by the imposition of the hegemony of the dollar by the United
States and has been aggravated by the current economic situation in
capitalist countries, it is really a reflection of contradictions which
exist at the very heart of that system, especially the intermonopolistic
and interimperialist rivalries which are today pitting, sometimes in a
spectacular manner, the United States, the EEC and Japan in the fight for
markets for the export of capital, merchandise and raw materials.

Furthermore, the monetary crisis has become an added burden to the
underdeveloped countries--which are usually negatively affected by monetary
instability--making their structural instability more acute, making their
imports more expensive, making their exports cheaper and often diminishing
their reserves when such reserves exist.

It should not be forgotten that the downfall of the capitalist monetary
system did not even have as a positive effect the elimination of the IMF,
which has survived the crisis stemming from the agreement which created it,
among other reasons because it has been supported by the United States and
by the other imperialist powers so that they can use it as a true monetary
and financial gendarme of the underdeveloped world. The IMF, taking
advantage of the difficult position of petroleum-importing underdeveloped
countries which are currently overburdened by growing deficits in their
balance of payments and by an overwhelming foreign debt, is imposing on
these countries, among other things, abusive conditional clauses aimed at
promoting the most reactionary and antipopular internal policies and at
turning these countries into easier victims of imperialist dependence and
exploitation.

Another event which merits due reflection as a characteristic feature of
the current world economic situation is the serious financial crisis being
experienced by the underdeveloped countries which import petroleum. This is
a crisis without precedent, as shown by the fact that the deficit in
current accounts of the balance of payments of those countries, which stood
at some $12 billion in 1973, averaged more than $42 billion between 1974
and 1978. It reached $53 billion in 1979 and it is estimated that it will
reach $70 billion in 1980. As a result, the foreign debt of these countries
went from $118 billion in 1973 to $343 billion in 1979. It is estimated
that it will be considerably more than $400 billion in 1980.

This crisis gives rise to a situation which is not the result of contingent
factors, but is rather the result of structural conditions linked to the
very nature of underdevelopment and dependence. We must note that on the
basis of the existing financial mechanisms, this crisis is a problem for
which there is no solution, how are these deficits and these enormous debts
financed? They are primarily financed with funds derived from the so-called
official assistance for development, which represent a meager 0.3 percent
of the gross domestic product of the capitalist powers; with an influx of
private foreign investments; with official loans; and for a dozen
countries, with commercial loans from international banks. In other words,
these huge deficits are wiped out by being constantly at the mercy of the
always unpredictable and usually meager contributions of a handful of
capitalist powers; by accepting the usually predatory conditions of the
major financial consortiums; by pawning the peoples' natural resources and
labor; by mortgaging present and future exports; and by cutting back on
imports needed for development and for the very survival of the vast
majority of the people. In short, these deficits are wiped out by more
dependence, more indebtedness, more exploitation and more underdevelopment.
This is the plain and honest truth about the situation.

It must then be asked: What are the prospects imperialism can offer to the
underdeveloped world? In this respect, it is significant that the World
Bank, that organ of the United States and the imperialist powers whose
demogogic positions are well known, says that by 1990, 10 years from now,
the deficit in the current account of the balance of payments of
underdeveloped countries will have reached almost $128 billion a year. The
World Bank even estimates how this monstrous figure could be financed: 66.6
billion with the so-called official development funds; 16.4 billion through
outside private investment, and 44.7 billion through commercial bank loans.

As can be observed, the World Bank is not attempting to solve the problem.
It merely projects the problem into the future in a magnified way. This
position, however, has a deep-rooted strategic purpose. Imperialism expects
to face the underdeveloped world's ever growing financial difficulties by
turning those difficulties into a juicy deal. In other words, by
perpetuating the dependence of that underdeveloped world by means of
niggardly development aid, and, especially, exploiting the situation in
such a way that it will bring imperialism the most benefit through the
profits of private foreign investment and the payment of interest on bank
loans.

In accordance with this imperialist strategy, backwardness and
underdevelopment would persist, as would hunger and poverty, unequal trade;
deficits and debts would increase. The underdeveloped world would remain
the same, only more underdeveloped than ever. Imperialism would remain the
same, only richer, and humanity would remain the same, only with I billion
more people living in the most abject poverty.

As Cuba stated at the FAO conference on Latin America, every 5 days there
are more than 1 million new inhabitants. Of these, 90 percent live in the
underdeveloped countries which have the largest deficits, are technically
backward and have fewer material resources available for food production.
This world population which is now 4.3 billion people will increase in the
next 20 years to approximately 6.4 billion. Of this total, 80 percent--or
more than 5 billion--will live in the countries that currently comprise the
so-called Third World. It is estimated that in underdeveloped countries
approximately 25 million children under 5 years of age die each year. The
immense majority die of curable diseases and hunger.

Forests are reduced at a rate of almost 20 million hectares per year.
Because of erosion, loss of organic material, salinization and other
factors, deserts and arid regions spread at a rate of millions of hectares
a year. This is the equivalent of the total agricultural land of Cuba.
Agricultural land per capita in the world 10 years ago was 0.5 hectares. In
the next 20 years it will be 0.25.

At the initiative of the nonaligned countries movement, the program for a
new international economic order was approved in the form of a declaration
by the UN General Assembly in 1974. However, after more than 6 years of
negotiations, little progress has been made in the revindications demanded
in the program.

The capitalist powers, through their representatives to different UN
bodies, systematically have refused to accept even one of the just demands
of the underdeveloped countries and lately have not even wanted to reach an
agreement with them on the central points and the manner in which problems
are to be discussed in a new round of negotiations proposed by the movement
of nonaligned countries and the underdeveloped countries in general.

One benefit of the struggle for a new international economic order,
however, is the unification of the underdeveloped countries into a single
front. Considering the heterogeneousness of their economic, political and
social factors, this phenomenon can only be explained on the basis of a
generalized contradiction between these countries and imperialism. This
contradiction includes the governments of countries that are allies of
imperialism and in the periphery of the underdeveloped and dependent world,
but which are no longer willing to endure without certain changes the
system of inequity and exploitation to which the capitalist powers'
monopolies subject them.

In the face of the strategy of the most reactionary circles of imperialism,
the united action of the underdeveloped world, of the socialist countries,
of the entire planet's progressive forces and even of the most lucid
sectors in the developed capitalist powers becomes essential in order to
confront the serious crisis that today prostrates mankind.

At the 34th period of sessions of the UN General Assembly, in October 1979,
we proposed, in the name of the nonaligned countries' movement, the
undelayable need to create an additional fund of no less than $300 billion
at the real values of 1977, to be distributed in yearly quantities over the
next 10 years in the form of donations and long-term soft loans among the
underdeveloped countries.

In spite of the fact that more than 1 year has elapsed since that
initiative was proposed, and despite the support obtained at various UN
forums, a decision has not yet been made to set in motion the international
mechanism that promotes such a flow of resources. Meanwhile, during this
period, the situation in both the underdeveloped and developed world has
continued to deteriorate. Each day, there are more voices uniting to demand
a mass financial transfer of resources toward the underdeveloped countries,
not only as a contribution to the solution of some of their most pressing
problems, but also as a measure that might stimulate an effective demand
capable of exerting a positive influence over the developed capitalist
economies' stagnant situation.

A large-scale period of international cooperation must be opened in today's
world if we really want to raise the standard of living of the peoples, to
get most of mankind out of underdevelopment and to safeguard international
peace.

The arms race must be stopped. The current stock of nuclear weapons is
already enough to destroy the world many times, as was acknowledged a
little more than 2 years ago in a UN report which also stated that the
nuclear warheads stocked in the arsenals--not counting the so-called
tactical nuclear weapons--represent an explosive potential which,
conservatively estimated, is equivalent to 1.3 million times the bomb
dropped in Hiroshima.

The arms expense figures are now both terrifying and hallucinating. These
unrestrained expenses have created huge imbalances in the capitalist
economy and constitute one of the key elements of the inflation hitting it.
Tens of millions of people are dedicated to maintaining and increasing the
war resources. These millions of individuals include hundreds of thousands
of scientists, technicians and engineers, in some cases the most select of
the entire world's qualified personnel.

Hundreds of millions of nonrenewable resources are being consumed in the
arms race, including the world's most scarce resources of energy and raw
materials. The annual expense for the preparations of a war now absorbs
between 5 and 6 percent of the GNP of certain powers and during the 1970's
it reached a yearly average of $350 billion, that is, about $1 billion per
day, or $40 million per hour, almost $700,000 per minute. At present, for
each one of us, for each inhabitant in this planet, about $90 are spent
each year in weapons, that is, more than the annual per capita income of
hundreds of millions of people in the underdeveloped world.

These expenses do not benefit anyone. They are totally unproductive and
their periodically disposable results can be used only as scrap iron. This
foolishness is impressive when contrasted with the financial requirements
of the solutions to some of the most pressing problems afflicting the
planet's population. This nonsensical arms race, which can explode any
moment into the most destructive and universal holocaust, cannot continue.
It is necessary to put an end to that suicidal policy if there is the
desire to guarantee a future of peace and well being to all mankind.

The international policy, its complex development and our party's and
government's actions in this area have been one of the constant concerns of
the work carried out by the party's directorate in the 1976-80 period. The
5 years that have elapsed have been rich in developments. Numerous peoples
have joined the increasing family of revolutionary and progressive
countries.

In those final days of 1975, the firm and heroic struggle of Angola was
still being waged. Under the direction of the Popular Movement for the
Liberation of Angola and of its President Agostinho Neto, the Angolan
people achieved victory a few months later, causing a turnabout in Africa's
political life, and opening new prospects for all the peoples of black
Africa by helping to consolidate the independence of some and to strengthen
the others' struggle for liberation. Despite the painful loss of President
Neto, the strengthening of the Angolan revolution is one of the most
promising developments of the recent African process.

The Ethiopian people's victory against the clumsy and treacherous Somali
invasion promoted by Siad Barre's outrageous ambitions had enormous
significance also. The consolidation of the Ethiopian revolutionary process
under a firm revolutionary direction presided by the outstanding African
fighter Mengistu Haile Mariam, [applause] who is now intent on constructing
a Marxist-Leninist party, is destined to have an extraordinary
reverberation in the African world.

Another African development of singular revolutionary significance was the
victory of the Zimbabwe Patriotic Front, which after a long armed struggle,
with the determined support of the frontline countries and the solidarity
of all progressive peoples, obtained from the UK Government an agreement
that forced the racist Rhodesian minority to hold elections in which the
people of Zimbabwe imposed their decision and managed to obtain a genuinely
popular government presided over by Robert Mugabe. [applause]

Mozambique is consolidating its independence and is already advancing on
the path of socialism under the leadership of the Mozambique Liberation
Front and its brilliant and able leader, Samora Machel. [applause]

In Southeast Asia there was the defeat of the criminal Pol Pot and Ieng
Sary gang which maintained Cambodia under oppression and inhuman treatment
and which, with the support of China, represented an obstacle to the
process of socialist construction in the former Indochina.

This victory of the Kampuchean people was threatened by Chinese military
pressure that culminated with the unprincipled attack on Vietnam by the
rulers of that country. The Vietnamese people, their party, their
government and their armed forces once again contributed to the struggle
for peace, national independence and socialism by inflicting on the
invading Chinese forces a humiliating defeat. [applause]

In Afghanistan, the victory of the April 1978 revolution put an end to a
proimperialist, reactionary and feudal regime and installed a popular and
progressive government. Later, the shah, a gendarme of imperialism in the
Middle East, was overthrown by the people of Iran in a heroic and admirable
struggle.

Our region was the site of very significant struggles in the confrontation
between the people and imperialism. After a persevering and heroic
struggle, the Nicaraguan people, [applause] led by the Sandinist National
Liberation Front, defeated the brutal Somozist tyranny and uprooted an
exploiting and bloody regime created and sustained by U.S. imperialism.
This made room for an authentic and profound popular, antioligarchic and
anti-imperialist revolution.

The big turnover in Nicaragua followed the resounding popular victory of
Grenada [applause] which took place a few months earlier under the
leadership of the New Jewel Party and which gave vigor and stimulous to the
former European colonies in the Caribbean.

The big popular victories that have taken place in these past 5 years must
not cloud the vision we have of the international process. In particular,
they must not lead us to errors regarding today's big threats to peace and
to the national liberation of the people.

The threat to international detente from the most reactionary sectors of
imperialism--a threat which was denounced by the first PCC congress--has
become increasingly evident and has blocked the incipient and difficult
process of international detente which was experienced in 1975 and which
was decisively influenced by the Soviet Union's foreign policy of peace
prepared during the 24th and 25th CPSU Congresses. This has resulted in the
rising of the cold war threat and even in the possibility of a general
international conflict.

The responsibility for this worsening of the international situation lays
completely with imperialism, and especially with the U.S. imperialists. The
United States has organized and prepared a worldwide campaign on the basis
of an alleged USSR military superiority for the sole purpose of justifying
new steps in the arms race by Washington and its allies.

U.S. imperialism, using the deadly position adopted by the Government of
China and the treason of its leaders against the cause of socialism and
internationalism, undertook the task of weaving an alliance between China,
Japan and the United States against the Soviet Union.

The overthrow of the shah in Iran and the events of an evident popular and
anti-imperialist process that followed in that country served as a pretext
for Yankee imperialism to increase its presence in the Indian Ocean, to
expand its military installations at the Diego Garcia base and to try to
turn that area, vital to the world, into a U.S. domain.

This was followed by the steps of establishing bases in Kenya, Somalia,
Egypt and Oman.

The United States promoted and imposed on the NATO countries an increase in
their military budgets in 1978, at the same time that a few kilometers from
Washington--where this decision was adopted--the United Nations was holding
a special assembly on disarmament.

The United States obtained the consent of its European NATO allies for the
establishment in Europe in the near future of 572 medium-range rockets
aimed at the Soviet Union. This decision represents a very serious,
adventuresome and dangerous step.

Let it be recalled that the presence of a few dozen medium-range missiles
near the United States put the world on the brink of war in October 1962.

Also, in this period the United States decided to establish powerful
interventionist forces called the rapid deployment forces, which constitute
a threat to all the peoples of the world, especially those of the
revolutionary, progressive peoples who are struggling for their liberation
in Asia, Africa and Latin America.

This U.S. policy determines the U.S. position in the Middle East and keeps
it in a position of opposition to the Palestinians' demand for their
national rights and the Arab countries' hope of recovering the territories
that Israel wrested from them. Since 1977 the United States has turned its
back on the total negotiations regarding the Arab-Israeli problem and has
been determined to impose the Camp David agreement and increase its
opposition to the Palestinian cause.

Similarly imperialism is determined not to accept the democratic social
changes that some Latin American and Caribbean peoples are carrying out in
exercise of their independence. It has responded to the Sandinist
revolution in Nicaragua and the revolutionary insurgency in El Salvador
with an arrogant attempt to reaffirm its domination of Central America and
the Caribbean, a zone which it dares to describe as being of special
interest to the United States.

Using the pretext of the presence in Cuba of a small group of Soviet
military personnel who had been coming to our country ever since the crisis
of October 1962--a fact which was perfectly well-known to all the U.S.
administrations since that date and which was brought to the fore in a
demagogically and ill-intentioned manner during the sixth summit meeting
[of the nonaligned countries]--the U.S. Government created a command post
in Florida and established special forces designed to guarantee a rapid
Yankee intervention in any Latin American country.

Other results of this great campaign was the approval of an increase of $42
billion in the military budget and the approval of the construction of the
MX nuclear missile complexes at a cost of $33 billion. The blatant display
of military force in all areas of the world and threatening language of the
U.S. rulers were accompanied by the decision to postpone the ratification
of the Salt II treaty.

All these events took place before the Afghanistan incidents. In that
country, the ferocious provocations, the subversive actions and the
interference of imperialists and the international reactionaries against
the revolution--to which can be added the divisions and the serious errors
of the Afghan revolutionaries--brought the situation to such a state that
the aid of the USSR became necessary to save the process and preserve the
conquests of the revolution of April 1978.

This served as a pretext for the United States to try to justify the
warlike course of its foreign policy, which already had been implemented
several years before and the adoption of additional aggressive measures
against the USSR.

At present the new Afghan revolutionary leadership appears to be
consolidating itself, and we hope that the situation in the area will
advance to the point of normalization on the basis of full sovereignty,
noninterference in its domestic affairs, peace and good relations among all
the states of the region.

Cuba has made an effort to improve Afghanistan's relations with Pakistan
and Iran, and all nonaligned countries, which could contribute to these
objectives. Undeniably imperialism, seeking again to reverse the course of
history, assumes with renewed aggressiveness the role of international
gendarme and is putting a halt to the process of social and political
changes in the world.

To this already tense and dangerous international panorama, the explosive
situation created regarding Poland is now added. What is happening there is
partially the result of the subversive policy of imperialism against the
socialist countries and of its long-term plans to infiltrate, destabilize
and liquidate socialism in the Eastern European countries, with the goal of
weakening and isolating the USSR and if possible destroying socialism in
the world.

In Poland, particularly, a sinister imperialist provocation against the
socialist camp is being hatched. The successes achieved by the reaction in
that country demonstrate, in a very eloquent manner, that a revolutionary
party in power cannot stray from the principles of Marxism-Leninism,
neglect its ideological tasks, or lose contact with the masses. [applause]

When the time comes to rectify things, it should not be done by making
concessions to the internal or external class enemies. We maintain very
firm hopes that the Polish party will be able to resolve Poland's situation
with its internal forces. It is not the least bit questionable that the
socialist camp has the right to safeguard its integrity, survive and resist
[lengthy applause] to survive and resist, at whatever price, the onslaughts
of imperialism.

But neither can one question the sacred duty of Polish Communists to
resolve, with their own forces and on their own, the struggle brought about
by the antisocialists and counterrevolutionaries. [applause]

Under the present international circumstances, it is the best service they
can render not only to their own fatherland, but also to the cause of
socialism, the world revolutionary and progressive movement, detente and
peace. [applause]

We are confident that, above and beyond the mistakes made, the brave sons
of that heroic people and their communist vanguard will recover from the
initial setbacks and that, lifting their combative spirit with the support
of the country's healthy forces and the use of the enormous moral patriotic
and revolutionary reserves of their working class, they will be able to
achieve that. [applause]

Under these circumstances, the 4 November elections in the United States
acquire special relevance. These elections were held amid the disaster of
the U.S. economy resulting from the permanent relapses into the crises that
characterize the equally critical situation of the world economy. This led
to mass unemployment for large sectors of the U.S. working class,
particularly blacks and youths. It reduced the real income of all U.S.
workers as a result of an uncontrolled inflation and elicited in many
people a desire either for change or total indifference toward the
elections.

The international situation, characterized by an increasing loss of U.S.
hegemony and prestige, was skillfully exploited by the domestic political
opponents. The feelings of frustration and skepticism among the people and
even such factors as the hostages in Iran, the U. S. Government's
mishandling [of this situation] and the retention of the hostages at the
end, all contributed to the defeat of the current administration.

Forty-seven point one percent of the voters abstained from voting in a
country that boasts of its representative democracy. The Republican
candidate was elected with the support of only 26.7 percent of the U.S.
voters entitled to vote. It would be a mistake, however, not to acknowledge
the reality expressed by the U.S. elections. Reagan's electoral victory is
the victory of the right and it represents an evident slide in that
direction by an important sector of the U.S. public opinion. This is
confirmed by the fact that in the senatorial elections the most liberal
senators were defeated, including several determined advocators of the
approval of the SALT II treaties. With the apparent national support that
his election provides Reagan, there is the danger that we might throw all
caution to the winds and return to his earlier aggressive stances and to
the most reactionary aspects of the Republican platform.

All these developments and the climate that they engender in the area of
international politics, confirm the appreciations that we upheld at the
first congress that the detente to which the peoples aspire, which
constitutes an essential condition to the survival of mankind, is
continually being threatened by the most reactionary sectors of
imperialism, which have not resigned themselves to it.

The possibility of saving detente, however, has not been cancelled by this
situation even though it makes it more difficult and endangers it. The
possibility of [preserving] detente exists in the first place due to the
firm and permanent peace policy of the Soviet Union with the collaboration
of the socialist countries and their support of all of the world's
progressive forces.

An essential element that no one can push aside is the fact that the USSR
is fully capable of defeating any act of aggression aimed at subjecting it.
A nuclear adventure against the Soviet Union would be suicidal for those
who might be moved to attempt it. This is something that not even the most
aggressive imperialists forget in their calculations. The very allies of
the United States will not docilely support it along that path, for it
would mean their own destruction in the first hours of a world war.
[applause]

But it would not be sensible to push aside or to make less of the
aggressive capacity of imperialism. It has a dangerous military arsenal,
particularly a nuclear arsenal, which it strives to increase and improve
technically. It also improves and increases its international military base
network in all zones, arrogantly surrounding the Soviet Union.

The United States is working to reduce by all possible means the
contradictions that exist within NATO, to reconstruct the system of
military alliances in southeast, central and southwest Asia and to preserve
the Rio de Janeiro treaty as an aggressive antisocialist pact.

The U.S. imperialist policy has an ally in the PRC Government. The leaders
of that country are stimulating NATO's aggressiveness and advocating the
increase and technical development of its weapons. They are inciting and
helping the United States in the effort to turn Japan into a spearhead
against the Soviet Union.

They do not conceal their continuing nuclear preparations and the
development of their nuclear warheads missiles or to proclaim that the USSR
is an enemy that must be destroyed. They are trying to expand through
Southeast Asia; they are threatening their ASEAN neighbors and they have
attacked Vietnam, thus forcing it to interrupt the national reconstruction
and the socialist construction that it had peacefully undertaken in order
to heroically defend its soil. It is playing the same role in Africa and in
Latin America, where it has linked itself to the most reactionary forces,
without turning back from friendship with the most repressive elements and
the most corrupt regimes.

One must, therefore, prepare oneself for the serious difficulties that
might arise in the international arena. Tens of thousands of atomic weapons
hover like Damoclean swords over mankind. No period in the history of
mankind has experienced anything similar. It could be affirmed that the
most important problem of our day, for all peoples without exception, is
the prevention of a new world war. Absurd as it may seem, inconceivable and
catastrophic as its results may be, this danger exists. It is real. The
peoples will not be indifferent to this danger.

In the struggle to preserve peace and to prevent a war that would be
devastating for the world, the nonaligned movement can also play an
important role. The fact that the majority of the countries is the
international community, among them almost all developing countries, today
comprise this movement, make it an international force that no one can
ignore, as it is present, with increasing influence, in almost all of the
world's developments.

Born from the secular struggle of the peoples who broke the chains of
colonialism and foreign domination, the nonaligned movement has become an
instrument of inestimable value for those who are intent on consolidating
their independence and on overcoming backwardness and poverty.

The sixth conference of chiefs of state or of government of the movement's
member countries which, to our honor, took place in Havana in September
1979, constituted a solid demonstration of the strength of the movement and
of its influence on international politics. Despite the efforts made by
U.S. imperialism to reduce the importance of that sixth summit meeting and
to eliminate the movement's basic anti-imperialist direction, both in its
general pronouncements and in the manner that it approached each of the
specific international problems that it examined, the movement ratified not
only its independent position but also its anti-imperialist nature. It also
made a valuable contribution to peace and to the huge efforts currently
underway to eliminate injustice, inequality, oppression and racism and to
achieve the true social and economic development of developing countries.

In the wake of the summit conference, the movement has had to confront the
insidious and systematic activities of the enemies of our peoples, who also
try to take advantage of the complex international situation in order to
sow division and to hinder and weaken our countries' joint actions.

Despite all obstacles, the nonaligned countries have continued striving to
put into practice the decisions made at the sixth conference and they have
preserved their unity. The presidency of the nonaligned countries' movement
has fallen to Cuba at a time of intensification of the international
tensions. Numerous conflicts have been developing. New centers of tension
are emerging in various regions and contradictions confront certain
nonaligned countries.

Meanwhile, the international economic crisis and the lack of solutions to
the problems and difficulties of the underdeveloped countries make even
more difficult the situation of the peoples of Africa, Asia, Latin America
and the Caribbean.

Cuba has tried to find just and unity-oriented solutions to the differences
that exist between certain member countries--which in certain cases even
manage to bring them into opposition to each other--for it realizes that
the internal unity of the movement is necessary in order for it to play its
important role in international politics.

Believing the military conflict between Iran and Iraq has entailed serious
damage to both countries, and also represents a serious threat to the
interests of peace in that region and throughout the world, while also
economically affecting the underdeveloped countries that do not produce
oil, Cuba decided, as soon as the conflict began and as part of its
obligations as president of the movement, to offer to mediate. We will not
cease in this effort as long as there is a possibility of contributing to
the restoration of peace.

Acknowledgement of our stance has come not only from the two combatant
countries, but also has had unanimous support within the movement and has
deserved the approval of the international community. Cuba will continue to
conscientiously fulfill its duties as president of the movement. To this
end it has dedicated and will continue to dedicate its best efforts, in the
certainty that under the present circumstances, it is the nonaligned
countries' duty to reinforce their cohesion and solidarity and to redouble
their struggle for peace and for a just economic order and a suitable
solution to the pressing problems affecting our peoples.

Our position as a country that belongs to the vast group of underdeveloped
and developing countries that have been termed the Third World is also
expressed in the international arena through our sustained, firm and
combative position on behalf of the demands of those countries.

During the past 5 years, Cuba has been present with representative and
active delegations in all international forums where the problems affecting
the relations between the industrialized and the developing countries are
discussed. Efforts have been made to dissemble these contradictory
relations under the deceitful name of North-South relations. However, one
can hardly conceal the differences in nature between the exploitative
relations that still persist between the former colonial countries and
their imperialist successors and our exploited peoples and the relations
linking the latter with the socialist countries. The battle for the new
international economic order, when justly understood, is a continuation of
the struggle for emancipation from colonialism and for the defeat of
imperialist despoilation.

It is an incidental moment in that lengthy historical battle, but
undoubtedly, at the present time in world history, it is necessary to stop
and consider whether mankind should choose--in resolving these ancient
problems that are now recorded--the path of confrontation or whether it
should prefer the path of cooperation. This was the central theme of the
speech that Cuba presented to the 24th UN General Assembly in the name of
the movement of nonaligned countries.

This choice has not yet been made, and there is still time to try--although
it is a very difficult and perhaps romantic and merely logical task--to
coordinate the interests of the developed capitalist countries, of the
socialist countries, and of the developing countries in order to arrive at
constructive propositions, this would be an enormous service to the cause
of peace.

As can be understood, it is not possible isolate Latin America and the
Caribbean from the international situation as whole. However, where our
area is directly concerned, we have tried to give the area's problems the
emphasis which we think they deserve, particularly as regards relations
with the common neighbor of our Latin American and Caribbean countries--the
United States.

The first congress of our party highlighted the crisis being faced by U.S.
foreign policy, as well as the unsurmountable conflict between U.S.
imperialism and the interests of the Latin American and Caribbean
countries. The continued economic crisis of international capitalism,has
made it even more obvious that the United States no longer has any chance
of lulling the countries of the region with promises of reform. The
oil-producing countries like Mexico and Venezuela are being subjected to
U.S. pressure to sacrifice their long-term plans for the exploitation of
their nonrenewable resources on behalf of the most immediate requirements
of the Yankee economy, which is obstinately clinging to high consumption
and the waste of energy resources.

The nonoil-producing underdeveloped countries, for their part, with
uncontainable deficits in their balance of payments, are being subjected to
the impositions of the IMF, directed from Washington, to force them to
adopt policies that cause stagnation of their economic development while
generating new misery and suffering for their workers.

The United States provides neither a market for products that might be
produced independently by the American and Caribbean countries, nor
financing for their industrial development. The only solution that it
offers as an option is continued dependence on the Yankee transnational
companies, the continued deformation of the economies of area countries,
and the perpetuation of their unbearable economic structures in which an
oligarchic, monopolist minority enjoys over 80 percent of the national
income that is left to the country after the foreign plunderers have
extracted their portion.

U.S. imperialism offers to neocolonial Puerto Rico as an option, not
freedom, but definitive annexation. This unalterable imperialist policy
leads the United States to abandon the fallacious rhetoric of human rights
and return to the support of the neofascist military regimes.

Reagan's election has serious and immediate repercussions on the Latin
American political scene. In its international projections, faced with the
decisive problems of war and peace, the United States will be compelled to
take into account the true factors of the world situation; the undeniable
potential of the socialist countries and the caution of their allies. On
the Latin American scene, however, the U.S. imperialists feel freer to
accomplish their reactionary purposes. This is the evident danger which
Reagan's election poses for Latin America.

Reagan has not hesitated to proclaim that he considers the reactionary
oligarchies and the fascist military dictatorial regimes as valuable allies
who should not be harassed with references to human rights and with whom
one should be tolerant. He cast doubts on the enforcement of the Panama
Canal treaties. He spoke of Cuba in a threatening tone. He expressed
hostile ideological, political and economic intentions regarding Nicaragua
and has wielded-the threat of intervention in Central America, beginning
with an offer of economic, military and technical aid to the military
rulers of Guatemala and El Salvador.

At the same time, he expressed his desire to be able to rely, in
accomplishing these policies, on the three most powerful countries in the
area: Argentina, to which the United States offered to forget the past
criticism of its violations of democracy and freedom; Brazil, which it is
courting; and Mexico, who it is trying to force, along with Canada, into a
political-economic alliance that is undesirable, inequitable and designed
to subject these two countries to definitive U.S. hegemony.

The Latin American policy announced by Reagan is much more dangerous
because it embodies the aspirations and projections of a large portion of
the financial sector, the U.S. transnationals, and the aggressive sectors
of the Pentagon and the CIA, and because it has been presented to the U.S.
people as a national necessity required for the security of the nation,
which is supposedly threatened by a Latin American subversive movement in
which Cuba plays a major role, as well as by a secret and ominous USSR
intervention in the area.

It is obvious that these positions of the new U.S. Government encourage and
generate confidence in the fascist military leaders of Chile, Uruguay and
Bolivia. They serve as a stimulus for those who refuse to democratize the
Argentine process and they are grist to the mill of the genocidal leaders
of Guatemala and El Salvador.

The defeat of the Manley government in Jamaica gives this projection of
imperialism a useful instrument in the Caribbean. However, events show at
the same time that it is not easy for the imperialists to impose their will
in what was formerly their Latin American backyard.

In addition to the resounding popular victories of Nicaragua and Grenada
and the unending struggle of the peoples of El Salvador and Guatemala,
there are other extremely important elements that must be taken into
consideration when analyzing the situation of Latin America and the
Caribbean.

First there is the combativeness of the masses, which has reached
unprecedented levels. The fact that revolutionary national liberation
movements with strong social content are increasingly developing in our
lands and the fact that the level of the mass movement in several countries
has increased, means that the imperialist and oligarchic system of
domination in this area is experiencing an increasingly serious crisis.

It also reveals the increasing maturity achieved by the labor movement, the
peasants, youth, women and other popular sectors that already have numerous
and expert vanguards.

All this became heroically and admirably evident during the struggle waged
by the above-mentioned peoples of Central America and the Caribbean.

The Bolivian people also made manifest this position through their
persistent resistance to the militarist onslaughts which the latter has
been unable to control.

In Chile and Uruguay, Pinochet and the Montevideo gorillas have tried to
escape through pseudodemocratic masquerades from the decision of their
peoples, who reject the neofascism that they represent. During this period,
the Latin American working class gave clear demonstrations of its maturity
and force and of its union movement's potential. In Peru, Eduador and
Colombia strikes of unprecedented magnitude were staged. Argentine workers,
for their part, have been waging a constant struggle.

The unity achieved by the revolutionary forces in some countries and the
advances made in that direction in others have constituted an important
factor in the victories achieved and the advances made by the Latin
American revolutionary movements of national and social liberation. That
unity has also played an outstanding role as regards solidarity with the
struggle processes.

Within the Latin American context, the active participation of Christian
forces is more important every day. These forces are overcoming the
conservative and at times reactionary positions held by Christian
democratic parties in the area and they are actively joining the struggle
for national liberation, democracy and the social transformations of our
peoples. The fight of the revolutionary Christian elements, which sometimes
include priests and other members of the Catholic hierarchy, alongside the
leftist forces, constitutes an appreciable ingredient of the big historic
changes currently taking place in our countries.

When we refer to the revival of the popular forces, there is another new
element in the Latin American situation, which must be recorded: the social
democratic presence. Social democratic currents and organizations have
always existed in Latin America and the Caribbean, but the European social
democracy, center of the Socialist International, has not granted them much
importance in the past. Now, however, Latin America has become one of the
permanent arenas of social democracy. To a large extent, this is due to the
efforts made by this ideological and political current to achieve world
hegemony in the process of changes stemming from the general crisis of
capitalism. Social democracy also represents the economic interests of the
national financial capital of certain European countries.

Despite the well-known ideological differences that separate the
Marxist-Leninist revolutionaries from the social democrats, when we examine
the immediate [situation] and we refer to the current historic conditions,
the social democratic participation and the social-democratization of
former bourgeois and oligarchic parties of Latin America are positive. They
expand the forces and the field of struggle against U.S. imperialism's
domination in Latin America. In the meantime, social democratic propaganda
contributes to the political and social awakening of the masses wherever
the Marxist-Leninist message has been totally suppressed.

A new element in the continent's political structure is the fact that the
countries of greater industrial growth, the strongest in the area, are
trying to escape the orbit of complete U.S. domination and aspire to
exercise an independent position. Mexico has had a long tradition of
independence.

The discovery of large oil deposits, while making Mexico a target that is
increasingly coveted by imperialism, permits the Mexicans to organize a
policy of economic resistance that gives definitive sustenance to their
position of independence. This has been the international attitude
maintained by the government of Lopez Portillo, whose decisions with regard
to the decisive issues of peace, energy and development have been decidely
progressive and whose support for the principle of nonintervention,
sympathy with just causes of the peoples of this hemisphere and friendship
and respect for Cuba have been influential factors in Latin American
politics. [applause]

In this regard, it is possible to appreciate the full importance of the
direct and categorical message sent to the new president of the United
States by the president of Mexico, urging him to refrain from intervention,
to respect the internal processes of the countries that are seeking to
define themselves, since these countries have come of age and are capable
of self-determination.

It is very important to consider that if Brazil were to carry on with its
democratic advances and the changes for which broad sectors of its people
are struggling, primarily its working class, it would be incorporated into
the current of independence, with regard to Washington. With the failure of
the Brazilian miracle, with the revelation of the disastrous role of the
transnational companies and foreign capital, which have introduced
dangerous reforms in the Brazilian economy, there remains the fact that the
inequitable but obvious economic growth in Brazil introduces interests that
clash with those of U.S. imperialism. Its inevitable economic trend makes
Brazil a potential opponent of the United States that is destined to be
more than a simple pawn of U.S. imperialist policy and is fated to manifest
its own interests.

All these elements add new complexities to the political struggle of Latin
America and the Caribbean that the revolutionary forces will have to
evaluate. It is obvious, however, that they do not tend to strengthen the
positions of U.S. imperialism and that, on the contrary, they limit
imperialism's capacity to maneuver in the face of the peoples' struggle.

In our main report to the first congress, we said that the PCC considers
itself to be a modest but definite unit of the international communist
movement and we added [applause] that our party participates in that
movement with fully independent criteria, but at the same time with full
loyalty to a single cause, alongside the communists of all countries. We
must say to the second congress that the party leadership has tried to live
up to those postulates in their strictest sense.

At the time, we also noted the need and the adviseability of strengthening
ties with other revolutionary and popular organizations of progressive
tendencies that were active in the continental and world spheres. In this
period, not only has there been a strengthening of links with the parties,
organizations and movements with which we have cooperated in the most
fraternal manner for many years, but also new ties have been established
with an ever increasing group of progressive parties and political
organizations which have emerged as a result of the political development
of the masses in those countries.

The PCC has maintained frequent and fruitful contacts, at times at the
highest level, with socialist and social democratic parties and
personalities from Latin America as well as from West Europe. In the
future, we will maintain unchanged the strategic policy that leads us to
strive, with the greatest unity, toward each of the objectives which our
country has set out to achieve and which, therefore, should contribute to
its enhancement. In this regard, we will work together with all
those--regardless of class, political ideology, or religion--who are
willing to do something on behalf of peace and detente.

We will also join with all the patriotic governments and with the
anti-imperialist movements that are combatting, in one way or another, the
domination of Washington. In this regard, we fell it is necessary to
promote and support all those actions and attitudes of governments and
political forces of the region which constitute an expression of
sovereignty and of defense of legitimate national interests.

Our state foreign policy is inspired by the same principles and strategic
considerations. Thus every day we have a closer friendship and comaraderie,
first of all with the USSR [applause] which is always fraternal and in
solidarity with our fatherland and to which we are joined by indestructible
links of friendship; with the GDR [applause]; with the People's Republic of
Bulgaria [applause]; the CSSR [applause]; the People's Republic of Hungary
[applause]; the Mongolian People's Republic [applause]; the Polish People's
Republic [applause]; and the Socialist Republic of Romania [applause], with
which we are associated in CEMA. [applause] In addition, there are
relations of close friendship and cooperation with the Socialist Federal
Republic of Yugoslavia [applause]. The Socialist Republic of Vietnam is the
inseparable sister of revolutionary Cuba. [applause]

We are joined by firm ties to the Lao People's Democratic Republic
[applause] and in addition, relations have been resumed with Kampuchea
[applause] following its liberation from the opprobrious regime of Pol Pot
and Ieng Sary. With the DPRK [applause] which is struggling for the
reunification of its people, we maintain links of reciprocal friendship and
companionship.

While condeming its foreign policy positions and, therefore, without having
any political relations with China, there are nevertheless normal relations
at the state level which are expressed particularly in the area of trade.
Our state relations are evolving normally with the People's Socialist
Republic of Albania.

It is understandable that there should be permanent and increasingly
extensive links between us and the countries of Asia, Africa and Latin
America, particularly with those which are members of the movement of
nonaligned countries. It is not necessary to emphasize that among them, our
most permanent and close relationships, our identification with regard to
the main problems of international life should be with those which have
proclaimed socialism or have assumed a socialist direction: Ethiopia
[applause], Angola [applause], Mozambique [applause], the Congo [applause],
Guinea-Bissau [applause], Cape Verde [applause], Madagascar [applause],
Benin [applause], Sao Tome [applause] and Guinea [applause] in Africa;
Algeria [applause], Democratic Yemen [applause], Iraq [applause], Syria
[applause] and Libya [applause] among the Arab countries.

We have excellent relations with Tanzania [applause], Zambia [applause] and
Zimbabwe [applause]. Diplomatic relations have been established with Iran.
[applause] Friendship and close joint work in the movement of nonaligned
countries characterize our relations with India [applause].

Although we do not have diplomatic relations with some of the countries
that are members of the movement of nonaligned countries along with us, the
only cases of a rupture of diplomatic relations have been that decided upon
by the Republic of Somalia when we opposed its intervention against
Ethiopia, and Morocco, which broke relations with Cuba because our country
did its internationalist and nonaligned duty by supporting the people of
the Western Sahara and recognizing the existence of the Saharan Democratic
Arab Republic.

Latin America continues to be an area of political contradictions that must
have expression in the relations between Cuba and its neighbors in the
area. This explains the fact that in addition to our well-known and
unchanged rejection of regimes such as those of Chile, Uruguay, Paraguay,
Guatemala or El Salvador, there are still cases in which the lack of
diplomatic relations is entirely the responsibility of the respective
rulers.

In recent times, the use of violence in order to enter embassies, and the
improper and illegal use of asylum by small groups of criminal elements who
were not subject to any type of political persecution and who sought to
insure their departure from the country without fulfilling any legal
formalities at the expense of and under the protection of other governments
which normally would deny them visas by the usual means, elicited a firm
response from the Cuban Government. [applause]

This made our relations with several governments difficult, particularly
that of Venezuela, which chose to protect these elements rather than reach
agreements that would guarantee the respect, security and immunity of the
diplomatic seats while rigorously preserving the principles, rules and
objectives of the right of asylum. The situation between the two
governments has further deteriorated in face of the monstrous attempt to
pardon those responsible for the repulsive crime of Barbados. These
developments made those who think that the threat of propaganda adverse to
Cuba in other countries must impose on the Cuban Government the acceptance
of improper solutions realize that Cuba feels sufficiently sure about the
justness of its policies to defy any campaign and to firmly maintain its
principles. In the long run, the people of the world have learned the truth
and our country's true position.

The incidents created in connection with the Peruvian Embassy ended with a
reaffirmation of Cuba's position of principles. U.S. pressure, which found
a natural echo among some of the most repressive Latin American
governments, promoted a schism within the Latin American group at the UN
General Assembly and a shameless political blockade prevented our country,
even though it consistently obtained an evident majority of votes that
reached the overwhelming figure of 90, from holding a post as a member of
the UN Security Council, even though its international performance and its
position as president of the nonalined movement entitled it to this post

Under this circumstance, Cuba ceded on behalf of the friendly and
prestigious government of Mexico. The interference against Cuba set a
negative precedent at the United Nations and affected Colombia's
international authority and prestige.

The recent voting at the United Nations, which made it impossible for Costa
Rica to have access to the Security Council, constituted a sanction against
those who this time interferred in Cuba's election to that high-ranking
body of the international community.

It can be said, however, that an important number of Latin American and
Caribbean governments have rejected the constant U.S. pressure to reduce
their relations with Cuba. It is not only countries that are members of the
nonalined movement, such as Guyana and Panama or countries like Nicaragua
and Grenada, which have recently brought about revolutionary changes.
Others like Ecuador, which has resumed its civilian and democratic path,
have sought to imitate Mexico, which remains in the track of its lofty
traditions, providing an outstanding example of Latin Americanism that does
not yield to the influence of those who work to prevent the unity of our
nations.

It is necessary for this congress to reiterate its decision to maintain
relations of friendship and collaboration with those who respect our
country without difference in ideology or social system constituting an
obstacle to that purpose.

Before the Latin American public opinion we must insist that, for us, the
unity of Latin America and the Caribbean is one of our permanent objectives
and we regard it as the best way to achieve the historic purposes of our
America and the democratic and independent consolidation of each of our
countries.

The 5-year period has confirmed that the policy outlined by the party
regarding relations with capitalist countries is correct. This policy is
based on the possibility of maintaining bonds of fruitful cooperation and
mutual respect without taking into account differences in social systems.
This policy distinguishes between countries of medium development which
have not yet risen to the status of great powers and other of greater
economic power which never had colonial zones and which avoid hegemonic
stands. It also takes into account the inevitable contradictions that
persist among the major capitalist powers which lead them to adopt
positions that are not always unanimous. This has prevented Yankee
imperialism from more successfully implementing its policy of blocking
revolutionary Cuba and drowning it both economically and politically. These
relations with the developed capitalist countries have been subjected to
the harassments characteristic of the political contingencies that have
taken place in those countries. Thus, the defeat of the Scandinavian Social
Democrats or of the Liberal Party led by Trudeau in Canada introduced
temporary difficulties but did not prevent the flow of important commercial
agreements with those countries.

Our ties with Finland are excellent with tendencies toward even greater
development. Traditional relations continue with Spain. These relations
were stimulated by the visit to our country by Spanish Government President
Adolfo Suarez. The relations with EEC member countries have not been
homogeneous and have not always been easy. Nonetheless, we must report to
this congress that economic and financial movement has not been interrupted
even with those countries with which we have had circumstantial political
frictions. Japan is one of our major clients. Political exchanges and the
possibility of economic exchanges are increasing with the FRG and the level
of our exchanges with Italy has become stable. High-level communication
persists with France and important economic exchanges have taken place. The
fullness of these relations has been hindered, however, because the
attitudes of principles of the Cuban revolution regarding the problem of
colonialism remains in Latin America and have met with misunderstanding in
certain French circles.

It is not possible, comrades, to refer to each of the situations that arise
in our contacts with the international community. However, we must stop to
examine our problems with our closest neighbor, which is also the major
capitalist power of our days and the decisive hegemonic factor concerning
Latin America.

Our relations with the United States comprise the greatest contradictions
in our international relations. Although some of these contradictions
include insurmoutable and permanent elements derived from the socialist
character of the Cuban state and from the imperialist nature of the system
that dominates the United States, this does not justify the extreme
hostility of successive U.S. Governments toward Cuba. This hostility arises
mainly from their stubborn rejection of the possibility of the existence in
the area of socialist countries, and from their useless bid to erase
revolutionary Cuba from the Latin American map.

The first congress approved the policy of principles for the party Central
Committee. That policy was based on the decision to solve historic
differences resulting from the aggression of imperialist U.S. Governments
and, therefore, to set the possibility of discussing the normalization of
our relations with that country.

That principled policy was also based on Cuba's firm decision not to take
official steps toward that goal unless the united States is prepared to
eliminate the blockade, discuss the problem of Guantanamo and to abstain
from violating Cuban sovereignty.

At a given moment, during the Carter administration's initial period, it
appeared that the U.S. leaders had a certain inclination toward starting on
the road of negotiations. Undoubtedly, Carter made some positive gestures
toward Cuba. At the beginning of his administration, he suspended the spy
flights, he authorized travel by U.S. citizens to our country and he
proposed the creation of an interest office.

Cuba was receptive to these gestures but ultimately, the reactionary ideas
of some of his advisers prevailed over the less aggressive currents of the
State Department under Vance and Muskie, and relations again became tense.

There are pending problems. The Mariel situation is not solved, Mariel is
simply suspended. If the U.S. authorities continue encouraging illegal
departures from the country and no solution is found to problems related to
family reunification, Cuba considers it within its absolute rights to
authorize the departure of citizens who want to leave, from any point of
the territory. It is the United States which created this problem and it is
up to that country to solve it. [applause]

The construction of socialism as a free and voluntary task continues to be
a principle of our revolutionary process. This includes freedom to migrate.
What does the United States--which so much likes to talk about human rights
and the freedom of the citizens of the world to travel--have to say about
this? Cuba is prepared to reach reasonable and constructive agreements on
this matter.

Regarding air piracy, Cuba's attitude will depend on the U.S. policy toward
those who hijack Cuban ships or planes to travel to the United States
stimulated by the encouragement they receive from the U.S. authorities. If
they apply drastic measures, we will also adopt such measures with those
who hijack U.S. ships or planes to come to Cuba. If they are tolerant, we
will also be tolerant. This is a matter that we are prepared to discuss on
the basis of absolute reciprocity.

The election of Reagan introduces into Cuban-U.S. relations an element of
uncertainty, or more properly, of danger. No president can be judged before
he takes office. No one knows at this moment exactly what Reagan plans to
do. We have to be guided strictly by the Republican platform, the public
statements made by the candidate and the thinking openly reflected by the
advisers of the new U.S. president.

The intentions that have been expressed are extremely reactionary and
dangerous. It is unquestionable that there has been a victory of the
extreme rightwing in U.S. politics. The duty of peoples is to be realistic,
not to delude themselves and to prepare to resolutely confront the policy
announced by imperialism and the reactionary group that has just won power.

It would have been preferable to wait until the new president took office
on 20 January to hear his of ficial statements as the ruler of the United
States, but our congress begins today and it is our most sacred duty to
prepare the party and the people for the struggle that may be coming.
[applause]

Statements have been made which threaten the world, which threaten Latin
America and which particularly threaten Cuba. The idea held by Reagan and
his advisers to achieve military superiority and negotiate from positions
of force with the socialist camp is simply absurd. It would lead to the
most perocious arms race amid the most acute economic and international
crises ever to be experienced in contemporary times. It would be to
postulate that peoples are fatally destined to destroy each other
irremediably. It could be explained in the era of harquebuses and
crossbows, but not in the era of thermonuclear weapons.

Who has the right to play in this manner with the survival of humans?
Reagan, in our opinion, will not be able to resolve any of the essential
problems of the United States--inflation, unemployment, the energy crisis,
economic recession, vices, drugs, violence, crimes, corruption--but those
ideas on foreign policy may endanger world peace.

Kissinger, one of the present advisers of the future president, clings to
the obsolete, reactionary and fascist geopolitical idea of the division of
the world into spheres of influence; that is, the freezing of progress and
changes in the world and the suppression of the national independence of
any country with regard to its right to decide on the kind of economic and
social regime it should apply. This will not be accepted by the socialist
countries. This will not be accepted by the revolutionary and progressive
forces of the world. Cuba will emphatically oppose these stale and
Machiavellian objectives.

Reagan and his advisers have proclaimed their intention to form alliances
with the rightist, reactionary and fascist forces on this continent, but
the peoples of our America will never submit to this ignominious
subjugation. The workers, peasants, intellectuals and students will resist
this cruel destiny. The recent history of our hemisphere has demonstrated
our peoples fighting ability. It is useless to scorn them, to ignore them,
to underestimate them. Nicaragua, El Salvador, Grenada and Guatemala have
demonstrated the error of this. How many Yankee and fascist soldiers will
be needed to subjugate hundreds of millions of Latin Americans? There are
no longer any Switzerlands in our America. Eloquent examples of those
illusions are Chile and Uruguay. There are no longer any masks to conceal
our oppression. There are no longer any military or repressive mechanisms,
no matter how cruel and sophisticated they may be, developed by the U.S.
intelligence agencies, that are capable of containing the insurgency of
peoples.

Who can present our people from fighting sooner or later? Oppression will
not last forever. Terror and fear will not prevail eternally, The awakening
of the peoples has become more fearful than all things thought up by the
oppressors to subjugate them. One would have to be blind not to see this.
The more internal tyranny, the more imperialist oppression, the more
rebellion, and this rebellion will be invincible.

It is truly incredible that in today's world, some people should talk of
military intervention and the application once again of the big stick
policy on our continent. It would be better for them to wake up from these
delusions. Others have also dreamed of dominating the world and in the end
they were converted into ashes. Today, peoples have many varied forms of
struggle. Latin America and the Caribbean have over 300 million
inhabitants; its area is twice that of the United States.

Reagan has said that the error in Vietnam was not having waged the war, but
having lost it. In Latin America, the error of waging war could mean a
defeat greater than that of Vietnam. Who has told Mr Reagan that to wage
war is to have the right to win it?

There has even been talk of a probable intervention in Central America. Any
Latin American people will fight resolutely and bravely against any Yankee
intervention in their territory. If the Yankee Marines or the
interventionist forces disembark in Central America, the U.S. people will
again see the sorrowful spectacle of the disembarkation of the coffins of
their soldiers on their own territory. [applause]

Those who go to kill Latin Americans will also have to resign themselves to
die. At fault will be those who refuse to learn the lessons of history and
of the irreversible changes that have taken place in our world. No one is
threatening the life of the United States, but no one will accept, without
a resolute and heroic struggle, the U.S. threat to our lives. It is time to
say that the Latin American peoples fear nothing and no one. [applause]
[shouting of slogans]

They reject the big stick with indignation and moreover, they scorn the
imperialist carrot, despite the myth, despite blackmail, despite the
repugnant attempts to intimidate the patriots of Latin America, the sons of
Bolivar, of San Martin, of O'Higgins, of Sucre, of Ridalgoi, of Morelos, of
Morazan, of Maceo and of Marti. [applause] [shouting of slogans]

Reagan and his advisers have talked of militarily blocking Cuba under any
pretext, including, they affirm, if the Soviet Union were to carry out an
action in any other part of the world. This is a disgusting and cynical
idea. Cuba will be ready to defend itself against any military blockade or
Yankee imperiliast invasion. In this country the struggle will not cease as
long as there is one single patriot able to fight. [applause]

There are millions willing to do so, until the last drop of their blood is
shed. Whoever tries to take over Cuba, as the bronze titan [Antonio Maceo]
used to say, will gather the dirt of its soil soaked with blood if he does
not perish in the struggle. [shouting, applause]

It is known worldwide that the U.S. authorities conceived, organized and
promoted the assassination of leaders of the Cuban revolution and of other
governments. The CIA was the center of these disgusting practices. What can
we now expect from that institution when Reagan's advisers have said that
it will have a free hand and when none other than Goldwater is going to be
the president of the Senate's intelligence committee?

We feel that one of Reagan's first statements should be that his government
will not organize, authorize or permit the CIA to make plans to assassinate
leaders of other countries. We sincerely hope that these practices will not
be repeated. Otherwise, the U.S. government would be institutionalizing and
stimulating the worst kind of terrorism in the world, and all the
responsibility for and consequences of its acts will fall upon it.

If an olive branch is extended we will not reject it, but if the hostility
continues and attacks are made we will respond forcefully. Cuba realizes
that there is a worldwide historical need for normal relations to exist
between all countries of the world based on mutual respect, the recognition
of the sovereign rights of each country and the principle of
nonintervention. Cuba believes that the normalization of its relations with
the United States would be favorable to the political atmosphere of Latin
America and the Caribbean, and would contribute to world detente.

Cuba is, therefore, not opposed to resolving its historical differences
with the United States, but no one should expect Cuba to change its
position or renounce its principles. Cuba is and will continue to be
socialist. [applause]

Cuba is and will. continue to be a friend of the USSR and all the socialist
states. [applause]

Cuba is and will continue to be an internationalist country. [applause]

Principles are not negotiable. Fatherland or death, we will triumph.
[lengthy applause and shouting]
-END-