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"14. The two Governments agree that such persons will be subject to a final departure inspection by officials of the Department of Immigration and the Ministry of Public Health of Cuba and to an entrance inspection by officials of the Immigration and Naturalization Service and the Public Health Service of the United States, at the airport in Varadero. Persons found to be ineligible for departure from Cuba by Cuban officials in accordance with the laws and regulations in force in Cuba or those found by American officials to be ineligible for entrance in to the United States under laws and regulations in force in the United States will not be permitted to embark.

"15. The Government of the United States agrees to provide air transportation to carry persons permitted to depart Cuba and to enter the United States from Varadero to a convenient point in the United States.

"16. The Government of the United States agrees to provide air transportation with such frequency and capacity as to permit the movement of between 3,000 and 4,000 persons per month.

"17. The two Governments agree that the first movement under the terms of this memorandum of understanding will begin not later than December 1, 1965. "18. The two Governments agree that any problems that may arise in the implementation of this memorandum of understanding will be considered jointly by the Embassy of Switzerland in Havana, representing the interests of the United States of America in the Republic of Cuba, and the Government of Cuba.

"In the course of the conversations which led to the memorandum of understanding set forth above, the Government of Cuba stated its position concerning the departure of technicians and men from 15 to 26 years of age in Cuba who are obliged to perform compulsory military service. The Government of Cuba also stated that it would set forth its position on these matters in a separate note.

"The Government of the United States stated that it would reply, through the Embassy of Switzerland, to the note on the Government of Cuba referred to in the preceding paragraph and would set forth its own position on these matters as it had been expressed in the course of the discussions. Furthermore, the Government of the United States stated it would transmit to the Government of Cuba, through the Embassy of Switzerland, a separate note concerning the position of the Government of the United States on the matter of the inclusion in the movement from Cuba of persons imprisoned in Cuba for offenses of a political nature as that position had been expressed in the course of the discussions.

"The Government of Cuba stated that it would reply to the note of the Government of the United States concerning the inclusion in the movement to that country of persons imprisoned in Cuba for offenses against the revolution and would set forth its own position on this matter as it had been expressed in the course of the discussions.

"The Embassy has the honor to propose that, if the understandings described in the memorandum of understanding set forth above are acceptable to the Ministry of Foreign Relations, this note and the Ministry's reply concurring therein shall constitute an acceptance by the Government of the United States and the Government of Cuba of the terms of the memorandum of understanding, which shall take effect on the date of the reply."

(Spanish language version omitted)

A concurring note from the Cuban Foreign Ministry to the Swiss Embassy completed the exchange and put the memorandum of understanding into effect. In addition to these main notes, there were four other notes exchanged separately at about 9:30 am CST. The first of these, from the Cuban Foreign Ministry to the Swiss Embassy, reads as follows (complementary introduction and close omitted):

"The Government of Cuba, in accordance with the statement in the note containing the memorandum of understanding, and in order to prevent errors in interpretation on the part of, or in relation to, certain persons who, by reason of the social function they perform or because of legal obligations from which they cannot be excused, are subject to certain restrictions in regard to their departure or who, do not have the right to leave the country, considers it useful

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to confirm in writing, and also to publish, what was stated orally in the conversations with the Swiss Embassy which preceded the said (memorandum of) understanding, in reference to priorities, form and manner of departure of Cubans who wish to join their relatives or live in the United States, namely that in the case of technicians or skilled personnel whose departure from the country may cause a serious disturbance in a specific social service or in production, because a replacement for such person would not immediately be available, the Government of Cuba will authorize the departure of such person within the period during which the trips will take place, but will postpone it until the time when such person may be replaced in the duties which he performs.

"Likewise, and in conformity with the statement in the Cuban note containing the memorandum of understanding, and for the same reasons set forth in the preceding paragraph, the Government of Cuba considers it desirable to confirm hereby, and at the same time to publish, what it clearly stated during the course of the negotiations; namely that no citizen who under the law is included in the first call-up for compulsory military service, that is, between 17 and 26 years of age, or who will be included in the call-up in the next two years, that is to say, who is at present 15 years of age, has the right to leave the country and therefore will not be authorize to leave."

The Swiss Embassy replied to this note as follows (complementary introduction and close omitted):

"During the recent discussions which led to the memorandum of understanding of November 6, 1965, the Embassy of Switzerland made clear that it had been the understanding and hope of the Government of the United States that the statement by the Prime Minister of Cuba on September 30, 1965, would encompass persons in these categories who wished to leave Cuba to live in the United States. Thus, for example, there was no suggestion in that broad statement that any technicians who wished to leave Cuba for the United States would be prevented from departing, even temporarily.

"The Government of the United States regrets that at this time the Government of Cuba has not permitted men subject to military service and certain technicians to be included under the terms of the Memorandum of Understanding. The Government of the United States expresses the hope that the Government of Cuba will be willing to reconsider this position expressed in the course of the discussions mentioned above and repeated in the note of the Ministry. The Government of the United States wishes to stress the particular importance which such reconsideration would have in permitting the reunion of many families.

"For its part, the Government of the United States reaffirms its readiness to grant entry to the United States of the persons who are the subject of this note through procedures consistent with those established in the Memorandum of Understanding of this date."

The third separate note was from the Swiss Embassy to the Cuban Foreign Ministry (complementary introduction and close omitted):

"As the Embassy of Switzerland made clear during the course of the recent conversations which led to the Memorandum of Understanding on the movement of persons from Cuba to the United States, accepted by both Governments on November 6, 1965, the Government of the United States regards with special humanitarian concern the cases of those persons imprisoned in Cuba for offenses of a political nature. It had been the understanding and hope of the Government of the United States that the statement by the Prime Minister of Cuba on September 30, 1965 would encompass persons in this category who wished to leave Cuba to live in the United States.

"The Government of the United States regrets that at this time the Government of Cuba has not permitted political prisoners to be included under the terms of the Memorandum of Understanding. The Government of the United States expresses the hope that the Government of Cuba will be willing to reconsider this position. The Government of the United States wishes to stress the particular importance which such reconsideration would have in permitting the reunion of many families.

"For its part, the Government of the United States reaffirms its readiness to grant entry to the United States of such political prisoners through procedures consistent with those established in the Memorandum of Understanding of November 6, 1965."

The final separate note, a response by the Cuban Foreign Ministry to the note initiated by the Swiss Embassy, read as follows:

"The Ministry of Foreign Relations presents its compliments to the Embassy of Switzerland, representing the interests of the United States of America in Cuba, and in acknowledging receipt of its note dated November 6, has the honor to inform it that the Cuban position on the matter is that expressed in its note of October 12 of the present year."

EXHIBIT 2

Hon. EDWARD M. KENNEDY,

DEPARTMENT OF STATE,
Washington, April 6, 1966.

Chairman, Subcommittee on Refugees and Escapees, Committee on the Judiciary, U.S. Senate.

DEAR MR. CHAIRMAN: When Messrs. Sayre and Stevenson testified before your sub-committee on March 23, you asked for information on the growth of the Cuban economy.

Official Cuban data, which only covers the years through 1963, are by themselves of little value, because they have not been adjusted for the sharp rise in domestic prices which has occurred in Cuba since Castro came to power. We have, therefore, in the studies we have made of the Cuban economy, estimated Cuban gross domestic product (GDP-the value of all goods and services produced within Cuba) in constant prices, i.e., 1957 pesos. Our estimates, in billions of 1957 pesos, are as follows:

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Since sugar production is expected to decline this year from last year's level of six million tons and since Cuban agriculture continues to encounter numerous difficulties, we anticipate that Cuban GDP will also decline in 1966. Thus, as Mr. Sayre noted in his testimony, the Cuban economy has been essentially stagnant during the Castro regime although there have been swings in both directions. There are several other factors which should be noted in evaluating the performance of the Cuban economy. First, population has grown, despite the flow of refugees, from approximately 6.4 million in 1957 to About 7.1 million in 1965. Real, per capita GDP in 1965 was, therefore, below the 1957 level of 435-440 pesos and will undoubtedly be below that level again this year.

Second, the increase in the economy's output in 1965 was concentrated in sugar, but low sugar prices more than offset production gains. Lower foreign exchange earnings, together with depleted reserves, caused Cuba's imports to drop last year and the total value of goods and services available to the Cuban people, therefore, almost certainly declined in 1965 from the 1964 level.

Finally, the GDP estimates cited in the second paragraph of this letter do not take account of depreciation. We know that the Cuban economy is experiencing an abnormally high rate of depreciation because of mismanagement, faulty maintenance and a lack of spare parts for capital equipment, much of which is of United States origin.

I hope that you will find this information helpful.

Sincerely,

DOUGLAS MACARTHUR II, Assistant Secretary for Congressional Relations.

EXHIBIT 3

FEDERAL GOVERNMENT AGENCIES CONCERNED WITH CUBAN REFUGEES

1. THOSE WITH DIRECT INTEREST

1. Department of State: Determines overall policy for bringing of refugees to U.S. Negotiates with Cuban Government through the Swiss Embassy in Havana. Issues visas to Cubans applying in third countries for entry into this country. 2. HEW: Through Cuban Emergency Refugee Program receives and resettles refugees. Processes all applications for the airlift from Varadero, Cuba to Miami.

3. INS: Processes Cuban refugees into U.S. and issues necessary documentation either as permanent resident or parolee. Coordinates security check of prospective refugees prior to entry.

4. Customs: Inspects refugees at entry into U.S. Enforces Neutrality Laws. 5. Coast Guard: Picks up and escorts persons arriving by boat from Cuba. Enforces Neutrality Laws.

6. Public Health Service: Examines refugees before boarding airlift and again upon arrival.

7. MATS: Makes contracts for airlift and supervises.

II. THOSE WITH INDIRECT INTEREST

1. USIA (Voice of America): Interviews refugees to make up programs for broadcast to Cuba.

2. Intelligence community (FBI, CIA, DIA): Perform intelligence functions. 3. GSA: Responsible for maintenance of buildings where refugees are processed and initially housed after arrival in this country.

4. FCC: Monitors refugee broadcasts, controls clandestine stations, and policies to prevent violations of FCC regulations.

5. FAA: Controls movement of U.S. aircraft around Cuba and communicates with Cuban air control authorities. Operates controls to prevent illegal movement of aircraft.

There are other Federal agencies which at times deal with Cubans although they do not have specific programs established for them. Among them are the Office of Economic Opportunity, Housing and Urban Development, Labor, Agriculture, and the Small Business Administration.

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CUMULATIVE TOTALS OF CUBAN REFUGEE REGISTRATIONS AND RESETTLEMENTS BY QUARTER, March 1, 1961 through March 11, 1966

REGISTERED

RESETTLED

0

1961

1962

1963

1964

1965

March 11, 1966

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