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It was thought up by Americans to specifically terrorize other Americans
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This seems like a "way over the top" descpription of this contingency.
Rumors, innuendo, "fake-outs" and all those kind of things have been used by military forces worldwide for ever.
When this memo was written, one has to remember that Cuba was seen as a serious threat to US sovereignty. (Rightly or wrongly...it was there) Provoking them before they were ready to defnd themselves seems like a pretty heads-up strategy along with selling it to the US population who were not sure where the whole Cuba/Soviet Union relationship was headed.
This, IMO, was nothing more than a way to engage Cuba militarily if things became a bit too un-nerving for the government's liking. Also, it would of had to been approved by JFK if they wanted to move forward with it, and he was ALL about diplomacy first and actions second.
Since none of it ever occurred, it really is a non news worthy thing.
Every government in the world has contingency plans for all sorts of scenarios involving all other countries in the world. Hell I bet one of the bigger US contingency folders includes how to invade Canada should it ever need to happen...and likely vice-versa.
That being said...it can be frightening to see how far some will go to advance their causes.