-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