The Cuban Revolution did not want conflict with the United States; it wanted cooperation on a foundation of respect for its sovereignty. The Cuban perspective is evident in Law 851, emitted by the Revolutionary Government on July 6, 1960. The Law authorized the President and the Prime Minister of Cuba to nationalize U.S. properties by means of a Joint Resolution. It established compensation for the nationalized properties through government bonds at 2% annual interest, with payment to begin in a period of no less than thirty years. The Law mandated the National Bank of Cuba to create a fund that would be fed by Cuban government deposits in an amount equal to 25% of the value of the U.S. purchase of Cuban sugar in excess of the sugar quota. The Law, therefore, proposed a mutually beneficial resolution, linking compensation for nationalized properties to the U.S.-Cuban sugar trade. By means of a higher U.S. sugar purchase and Cuban use of the additional income to finance compensation and invest in industrial development, Law 851 pointed to the transformation of core-peripheral exploitation into North-South cooperation. The Cuban proposal, however, was rendered impractical by the simultaneous reduction of U.S. purchases below the sugar quota (announced on the same day, July 6), and by its subsequent policy of regime change. Nevertheless, thirty days later, in the announcement of Joint Resolution #1, Fidel appears to remain hopeful that the U.S. government will accept the proposal of compensation through U.S. purchase above the sugar quota.
Joint Resolution #1 was announced on August 6, 1960. The Resolution declared the compulsory purchase of twenty-six U.S. companies, including twenty-one sugar companies. The Resolution explained the historical context and the necessity of the expropriation of U.S. owned sugar lands, noting that “the Sugar Companies seized the best lands of our country” in the first decades of the twentieth century, during an invasion of “insatiable and unscrupulous” foreign capitalists, who “have recuperated many times the value of what they invested;” and noting that “it is the duty of the peoples of Latin America to be inclined toward the recuperation of its national riches, taking them away from the control of the monopolies and foreign interests that impede the progress of the peoples, promote political interference, and infringe upon the sovereignty of the underdeveloped peoples of America.” In accordance with the Agrarian Reform Law of 1959, the expropriated land was used to develop state-managed agricultural enterprises; or it was distributed without charge to peasants who worked on land they did not own, each receiving a “vital minimum” of 26.85 hectares, and all encouraged to form voluntary agricultural cooperatives.
So Castro nationalized American property, but it would be compensated by paying 2% annual interest bonds that could be redeemed in 30 years. The bonds would be paid for by the Americans buying extra sugar. So from this you get that Castro believed in a free market economy, and thought the Americans were getting a good deal? Vilifying Americans role in Cuba since 1898 was another friendly act? He also nationalized all large, and medium sized land holdings, and formed Agricultural Collectives. So it was only the subsequent American hostility that forced Castro to turn to Communism, and ally with the Soviet Union? Wasn't Cuba already Communist, after the nationalizations, and collectivization's? By the way did Castro allow other political parties to organize? So when the Soviet Union started buying Cuba's sugar, how did the economy preform in this Marxist Paradis, compared to say the previous 30 years?