Fidel Castro
Consolidating leadership: 1959–1960

On 16 February 1959, Castro was sworn in as Prime Minister of Cuba. In April, he visited the US on a charm offensive where President Dwight D. Eisenhower would not meet with him, but instead sent Vice President Richard Nixon, whom Castro instantly disliked. After meeting Castro, Nixon described him to Eisenhower: "The one fact we can be sure of is that Castro has those indefinable qualities which made him a leader of men. Whatever we may think of him he is going to be a great factor in the development of Cuba and very possibly in Latin American affairs generally. He seems to be sincere. He is either incredibly naive about Communism or under Communist discipline-my guess is the former...His ideas as to how to run a government or an economy are less developed than those of almost any world figure I have met in fifty countries. But because he has the power to lead...we have no choice but at least try to orient him in the right direction".

Proceeding to Canada, Trinidad, Brazil, Uruguay and Argentina, Castro attended an economic conference in Buenos Aires, unsuccessfully proposing a $30 billion US-funded " Marshall Plan " for Latin America. In May 1959, Castro signed into law the First Agrarian Reform, setting a cap for landholdings to 993 acres (402 ha) per owner and prohibiting foreigners from obtaining Cuban land ownership. Around 200,000 peasants received title deeds as large land holdings were broken up; popular among the working class, it alienated the richer landowners, including Castro's own mother, whose farmlands were taken. Within a year, Castro and his government had effectively redistributed 15 per cent of the nation's wealth, declaring that "the revolution is the dictatorship of the exploited against the exploiters."

Castro appointed himself president of the National Tourist Industry, introducing unsuccessful measures to encourage African-American tourists to visit, advertising Cuba as a tropical paradise free of racial discrimination. Judges and politicians had their pay reduced while low-level civil servants saw theirs raised, and in March 1959, Castro declared rents for those who paid less than $100 a month halved. The Cuban government also began to expropriate the casinos and properties from mafia leaders and taking millions in cash. Before he died Meyer Lansky said Cuba "ruined" him.

In the summer of 1959, Fidel began nationalizing plantation lands owned by American investors as well as confiscating the property of foreign landowners. He also seized property previously held by wealthy Cubans who had fled. He nationalized sugar production and oil refinement, over the objection of foreign investors who owned stakes in these commodities.

Although then refusing to categorize his regime as socialist and repeatedly denying being a communist, Castro appointed Marxists to senior government and military positions. Most significantly, Che Guevara became Governor of the Central Bank and then Minister of Industries. President Urrutia increasingly expressed concern with the rising influence of Marxism. Angered, Castro in turn announced his resignation as prime minister on 18 July—blaming Urrutia for complicating government with his "fevered anti-Communism". Over 500,000 Castro-supporters surrounded the Presidential Palace demanding Urrutia's resignation, which he submitted. On 23 July, Castro resumed his premiership and appointed Marxist Osvaldo Dorticós as president.

Castro's government emphasised social projects to improve Cuba's standard of living, often to the detriment of economic development. Major emphasis was placed on education, and during the first 30 months of Castro's government, more classrooms were opened than in the previous 30 years. The Cuban primary education system offered a work-study program, with half of the time spent in the classroom, and the other half in a productive activity. Health care was nationalized and expanded, with rural health centers and urban polyclinics opening up across the island to offer free medical aid. Universal vaccination against childhood diseases was implemented, and infant mortality rates were reduced dramatically. A third part of this social program was the improvement of infrastructure. Within the first six months of Castro's government, 1,000 km (600 mi) of roads were built across the island, while $300 million was spent on water and sanitation projects. Over 800 houses were constructed every month in the early years of the administration in an effort to cut homelessness, while nurseries and day-care centers were opened for children and other centers opened for the disabled and elderly.

Castro used radio and television to develop a "dialogue with the people", posing questions and making provocative statements. His regime remained popular with workers, peasants, and students, who constituted the majority of the country's population, while opposition came primarily from the middle class; thousands of doctors, engineers and other professionals emigrated to Florida in the US, causing an economic brain drain. Productivity decreased and the country's financial reserves were drained within two years. After conservative press expressed hostility towards the government, the pro-Castro printers' trade union disrupted editorial staff, and in January 1960 the government ordered them to publish a "clarification" written by the printers' union at the end of articles critical of the government. Castro's government arrested hundreds of counter-revolutionaries, many of whom were subjected to solitary confinement, rough treatment, and threatening behaviour. Militant anti-Castro groups, funded by exiles, the CIA, and the Dominican government, undertook armed attacks and set up guerrilla bases in Cuba's mountains, leading to the six-year Escambray Rebellion.

At the time, 1960, the Cold War raged between two superpowers: the United States, a capitalist liberal democracy, and the Soviet Union (USSR), a Marxist–Leninist socialist state ruled by the Communist Party. Expressing contempt for the US, Castro shared the ideological views of the USSR, establishing relations with several Marxist–Leninist states. Meeting with Soviet First Deputy Premier Anastas Mikoyan, Castro agreed to provide the USSR with sugar, fruit, fibres, and hides in return for crude oil, fertilizers, industrial goods, and a $100 million loan. Cuba's government ordered the country's refineries—then controlled by the US corporations Shell and Esso —to process Soviet oil, but under US pressure they refused. Castro responded by expropriating and nationalizing the refineries. Retaliating, the US cancelled its import of Cuban sugar, provoking Castro to nationalize most US-owned assets on the island, including banks and sugar mills.

Relations between Cuba and the US were further strained following the explosion of a French vessel, the La Coubre, in Havana harbour in March 1960. The ship carried weapons purchased from Belgium, and the cause of the explosion was never determined, but Castro publicly insinuated that the US government was guilty of sabotage. He ended this speech with " ¡Patria o Muerte! " ("Fatherland or Death"), a proclamation that he made much use of in ensuing years. Inspired by their earlier success with the 1954 Guatemalan coup d'état, in March 1960, US President Eisenhower authorized the CIA to overthrow Castro's government. He provided them with a budget of $13 million and permitted them to ally with the Mafia, who were aggrieved that Castro's government closed down their brothel and casino businesses in Cuba. On 13 October 1960, the US prohibited the majority of exports to Cuba, initiating an economic embargo. In retaliation, the National Institute for Agrarian Reform INRA took control of 383 private-run businesses on 14 October, and on 25 October a further 166 US companies operating in Cuba had their premises seized and nationalized. On 16 December, the US ended its import quota of Cuban sugar, the country's primary export.
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