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i TOR-SHERET G0: 21 Oct 62 SOVIET MILITARY BUILD-UP IN CUBA I. Now clear to US that Khrushchev last spring made foreign policy decision on Cuba which involved unprecedented risks and which made it undeniable that Soviets are playing for very high stakes indeed, A. Soviets believed decisive action necessary because: 1, Cuban economy was deteriorating; 2. There seemed to be mounting pressure in the US for intervention, Soviets also saw opportunity to: 1. Demonstrate that the US can no longer prevent advance of Soviet offensive power even in its own hemisphere; Significantly expand Soviet capabilities for initial attack on US targets; Thus weaken Western resolve and unity in countering Soviet moves in the East-West global contest, particularly over Berlin and Germany. Soviet decision has since been implemented in phases; First, the build-up during the summer of defensive capabilities;