Under the terms of a trade agreement signed in Havana, July 24, Communist China has agreed to purchase 500,000 tons of Cuban sugar annually for the next five years.
SV PAN.. Chinese delegates.
CU Major Ernesto Che Guevara - President of Cuba's National Bank - at table.
CU Lu Hsu Chang, Communist China Deputy Minister of Foreign Commerce, at table.
CV PAN.. Guevara PAN to Lu Hsu Chang signing.
SV Cuban and Chinese delegates look on.
CU Lu Hsu Chang chatting -
CU - Guevara.
MV Lu Hsu Chang.
Script is copyright Reuters Limited. All rights reserved
Background: Under the terms of a trade agreement signed in Havana, July 24, Communist China has agreed to purchase 500,000 tons of Cuban sugar annually for the next five years. China will pay twenty per cent of the total price in convertible sterling, the remainder will be covered by a barter exchange of goods in the first year, and thereafter the sum will be settled by barter.
In addition, Cuba will send nickel, copper, manganese, chrome and cobalt, hides rayon yarn, tropical fruits and juices and oleaginous seeds.
Further agreements were signed providing for cultural exchanges and technical and scientific assistance. Antonio Jiminez, Director of Cuba's National Institute of Agrarian Reform, said that apart from Chinese credits allowing Cuba to buy "complete factories" from Peking, 32 factories have already been purchased by the Castro Government at a cost of GBP30 million with the aid of GBP35 million Soviet credit.
Five factories, for the manufacture of hardware and tools, are to be shipped immediately from Czechoslovakia. Seven will come from the Soviet Union, 12 from Poland, another three from Czechoslovakia, and a number from East Germany.