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| 1962–70 |
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| Castro initiated a major restructuring of the economy. A brief experiment with diversification and industrialization failed because of poor planning. By 1963 Castro decided to reemphasize the sugar economy, realizing that the capital for industrialization could only be generated by sugar. Rural production actually fell by 7 percent between 1962 and 1969, but as early as Oct. 1963 the government began efforts to revitalize agriculture. The Agrarian Law of 1963 expropriated thousands of medium-size farms, making centralized state farms dominant. During the subsequent period of Communist construction, Castro concentrated economic authority in the government. Working closely with Che Guevara, in 1965 Castro introduced moral incentives and promoted the idea of the new Socialist man in order to increase productivity. Cuba became dependent on Soviet subsidies as production targets were missed and absenteeism became endemic. In 1969, Castro launched a revolutionary offensive aimed at producing a ten-million-ton sugar harvest. This campaign severely disrupted the national economy, draining manpower and resources from other sectors before falling short with a harvest of 8.5 million tons. Following this failure, Castro's economic policies became more eclectic and his dependency on Soviet aid more pronounced. Despite these problems, the Cuban government was able to achieve noteworthy improvements in education, social services, and health care. | 1 |
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| 1962, Sept. 11 |
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| The USSR accused the U.S. of preparing aggression against Cuba and warned that this would mean war. Khrushchev declared that Soviet arms were being sent to Cuba “exclusively for defensive purposes.” | 2 |
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| Oct. 10 |
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| The U.S. government agreed to help pay the $60 million ransom set by Castro for the release of 1,113 Cuban prisoners. | 3 |
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| Oct. 22–Nov. 20 |
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| THE CUBAN MISSILE CRISIS came to a head in a U.S.-USSR confrontation over the installation in Cuba of Soviet offensive missile and bomber bases (See Oct. 15–28). Pres. Kennedy announced a U.S. air and naval “quarantine” to prevent arms shipments and proceeded to negotiate for the removal of Soviet offensive weapons from Cuba. Kennedy and Premier Khrushchev reached agreement on Oct. 28 that (1) the Soviets would halt construction of missile bases in Cuba and remove weapons under UN supervision, and (2) the U.S. would end the quarantine and give assurances that it would not invade Cuba. The U.S. blockade was ended on Nov. 20. | 4 |
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| Dec. 23–24 |
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| The remaining 1,113 Cuban rebels were returned to the U.S. in return for food and medicines valued at $53 million. | 5 |
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