Vol. 12, No. 2 February 2004

www.cubanews.com

In the News Bush intensifies anti-Cuba campaign,

NoMoreInternet.com but exiles say White House falls short Castro’s proposed limits on Internet ac- BY ANA RADELAT in New York and Washington, and a crackdown on unauthorized travel to Cuba — are all part of cess spark global outrage ...... Page 3 eorge W. Bush is tougher on Cuba than any president since Ronald Reagan, and a White House plot to invade the island, assassi- GU.S.-Cuba relations are at their lowest nate Castro and bring about “regime change.” Spurning Cuba point since Fidel Castro’s 1996 shootdown of In a Feb. 4 article, the Communist Party daily Not all U.S. food exporters want to crack two Brothers to the Rescue planes. Granma accused Bush of “creating a climate of artificial hysteria that would justify before the Cuban market just yet ...... Page 4 Yet while the White House campaign may block any congressional openings to Cuba and American public opinion a military adventure result in less U.S. travel to the island, it won’t against our homeland, including the physical J-Vs on the decline force Castro from power — despite election- elimination of compañero Fidel.” Number of joint ventures drops in 2003, year pressures from South Florida exile groups. There’s no question that Washington’s rheto- ric against Havana has intensified in the last few according to MINVEC chief ...... Page 7 Joe Garcia, executive director of the Cuban American National Foundation, said his organi- months. The Bush administration’s point man zation is disappointed that Bush hasn’t come up on Cuba, Assistant Secretary of State Roger Newsmakers with a better strategy on Cuba. Noriega, accuses Castro of “actions to destabi- James Cason, chief of the U.S. Interests “What has he done in the last three and a half lize democratically elected governments” in years but talk?” complained García. Latin America, and of plotting with Venezuelan Section in Havana, talks to CubaNews in Officials in Havana, meanwhile, say Bush’s President Hugo Chávez. an exclusive interview ...... Page 8 “provocative” moves toward the Castro regime Bush has also established a Commission for — the cancellation of bilateral migration talks, Assistance to a Free Cuba, composed of 20 fed- Pernod Ricard rejoices the ouster of 19 Cuban diplomats from missions See Bush, page 2 U.S. Patent & Trademark Office upholds Havana Club trademark ...... Page 10 Cuba plans extensive marina network Fidel’s finale Foreign correspondents in Havana pre- in bid to lure U.S. recreational boaters pare for the big scoop ...... Page 11 BY LARRY LUXNER Hemingway International Yacht Club of Cuba, avana’s famous Marina Hemingway can told CubaNews he’s looking forward to the day host up to 400 pleasure boats, but it’s rare when American boating enthusiasts will visit his Business briefs facility openly and frequently. Texas boosts food exports to Cuba; cigar Hto see more than 100 vessels tied up to the marina’s docks at any given time. “We didn’t name our club after Ernest Hem- prices recover in Europe ...... Page 12 With strict new U.S. travel restrictions in ingway for commercial reasons,” said Escrich, a place and being vigorously enforced, the major- 56-year-old ex-Cuban Navy commander whose Down on the farm ity of American yacht owners are simply too office is crammed with plaques and awards from afraid to sail to Cuba. And those who do make various U.S. boating associations. A comprehensive analysis of Cuba’s agri- the trip keep a decidedly low profile. “Hemingway symbolizes our objectives, be- cultural machinery sector ...... Page 14 In fact, the Cuban security men patrolling the cause he represents the friendship that existed marina discourage visitors from photographing and still exists between the Cuban and Ameri- Sugar prices any boats — lest the Treasury Department’s Of- can peoples. Secondly, he’s a symbol because he fice of Foreign Assets Control (OFAC) finds out showed us that recreational boating and love of Cuban agriculture officials hope for more and punishes U.S. citizens for traveling to Cuba the sea is the right of everyone.” lucrative crop this year ...... Page 15 and possibly spending money illegally there. Friendship aside, the Castro government cov- Yet Washington’s travel ban won’t last forever, ets U.S. yachtsmen because they tend to be CubaNews (ISSN 1073-7715) is published monthly and Cuban authorities are already gearing up for wealthy — and because they also hang around by Luxner News Inc. © 2004. All rights reserved. the expected flood of U.S. boating enthusiasts much longer than the average tourist. Subscriptions: $429/year. For subscription or edito- by upgrading existing marinas and building new Boats visiting Marina Hemingway in 2001 rial inquiries, call toll-free (800) 365-1997, send a fax stayed an average 28 days and had three to five to (301) 365-1829 or e-mail us at [email protected]. ones from one end of the island to the other. José Miguel Díaz Escrich, commodore of the See Marinas, page 6 2 CubaNews ❖ February 2004 gressional support for those measures. how the post-Castro transition will unfold. — FROM PAGE 1 Bush The CANF leader, who speaks for 20,000 “The succession is going to be smooth and eral agency officials and headed by Secretary exiles, fears that an easing of the embargo fast, and the transition is going to be slow and of State Colin Powell. The team is expected to “will come next year.” painful,” Suchlicki predicted. release its findings on May 1, just a few weeks But others say Bush will continue to turn Raúl Castro, the Cuban president’s younger before Bush’s annual Cuban Independence up the heat on Cuba because Castro is viewed brother and head of Cuba’s armed forces, is Day speech on May 20. as being more vulnerable than usual. the designated successor. Suchlicki said Raúl The commission’s mandate is to identify “The president is committed to seeing Castro will initially reject U.S. aid. “He’s not ways the United States could help hasten some change in Cuba,” said Jaime Suchlicki, going to immediately look at the U.S. and say Castro’s overthrow and help smooth Cuba’s director of the University of Miami’s Institute ‘let’s make a deal,’” Suchlicki said. transition to a post-Castro sytem. for Cuban and Cuban-American Studies. “But The UM professor said it’s likely that Noriega said the report will make recom- an invasion of the island, no.” Bush’s commission will recommend strength- mendations on democracy and the rule of law, Suchlicki said reports that Castro’s health is ening the signals of Radio and TV Marti. the creation of core institutions of free enter- failing are more frequent, and that the emer- Bowing to exile wishes, the Bush administra- prise and the improvement of health care, gence of a dissident movement in Cuba has tion used one of the Pentagon’s C-130 aircraft infrastructure, housing and urban services. heartened hardliners in the administration. to broadcast to Cuba — but only for one day “There are also indications that Cuban rev- last year. In addition, U.S. negotiations with THE MYSTERY COMMISSION olutionary fervor has died down,” he said. Belize to transmit from that English-speaking Some 100 officials from the National Secu- U.S. concerns about Cuba’s transition to a Central American nation have broken down. The president is also expected to continue rity Council, the U.S. Agency for International post-Castro world are almost as strong as they were in the early 1990s, when the same his crackdown on unauthorized U.S. travel to Development (USAID) and the departments Cuba; three administrative law judges have of State, Housing, Treasury, Commerce and analysts thought the collapse of the Eastern bloc was a fatal blow for Castro’s government. recently been hired by the Treasury Depart- Homeland Security reportedly began work- ment’s Office of Foreign Assets Control to ing on the project in early December. U.S. TO STEP UP ANTI-CASTRO RHETORIC hear an increasing number of cases of Brian Latell, a fellow at the Washington- American travelers who are being prosecuted based Center for Strategic and International At a Washington event in January hosted by for embargo violations by OFAC. Studies, said he’s been hired as a consultant Suchlicki’s institute, USAID Administrator Suchlicki also predicted that the president to the commission. But no one, including key Andrew Natsios warned that “there’s a real may decide “to throw five or six more Cubans exile leaders, really knows what the commis- possibility of a complex emergency” includ- out” of diplomatic missions in Washington sion is doing or whether it will come up with ing “a high risk of chaotic migration” to the and New York, even though that would pro- any fresh ideas. In addition, no list of the com- United States when Castro leaves power. voke Cuban retaliation. mission’s 20 members has been made public. USAID plans $7 million in aid for Cuba this Meanwhile, with their own eyes on Florida, “Thus far, there’s nothing serious about the year, on top of the $28 million the United the top Democratic contenders for the White commission,” Garcia said. “It’s pure politics.” States has spent on NGOs it says are working House are taking a harder line on Cuba (see Garcia also said that once re-elected, Bush to promote human rights, a free flow of infor- page 11 of this issue of CubaNews). Sens. John could abandon his pledge to veto any legisla- mation and a peaceful transition in Cuba. Edwards (D-NC) and John Kerry (D-MA) ini- tion that would ease the embargo. Late last Other speakers said Cuba’s vaunted health- tially joined most of their Democratic col- year, the president threatened to veto any lib- care system is deteriorating. Noriega urged a leagues in voting to allow food sales to Cuba. eralization of U.S. travel to Cuba and an end to swift delivery of U.S. aid to the island after But now they’re meeting with exile leaders the ban on U.S. credit for Cuba’s purchases of Castro is gone. But no one knows if Cuba will and vowing to keep the embargo in place until U.S. food and medicine — despite strong con- welcome the help. Nor is there agreement on the day Castro no longer rules the island. Castro boosts military expenditures IN MEMORIAM: MORT LUXNER BY OUR HAVANA CORRESPONDENT Meanwhile, the Union of Young Commu- Morton B. Luxner, an advertising sales- nists — some of whom aren’t so young — has man who in retirement taught creative writ- uba is significantly increasing defense ing classes and penned columns for The spending after cutting military expendi- called its 8th Congress for Dec. 4. That date marks the fifth anniversary of the start of the Broward News and other South Florida Ctures by 50% in the 1990s. This year’s 20 newspapers, died Jan. 10 at the age of 86. billion-peso budget includes more than 1.4 bil- battle for Elián González, which became the battle of ideas, replacing the last Party Con- The father of CubaNews editor and publi- lion pesos for the armed forces, an 8.9% jump. gress political line. Castro’s Jan. 3 speech and sher Larry Luxner — and a lifelong inspira- The government reports the budget in Che Guevara’s “putting ideology above all tion to the younger journalist — Mort Lux- pesos, but it includes a hidden dollar budget. else” are the main preparatory themes. ner was born in Newark, N.J., and grew up President Castro has taken to talking about Ideology or not, Castro needs dollars to in Brooklyn, N.Y., during the Depression. his “little rifle” and how he will die fighting, if pay for his priority projects. He’s also upset While serving in World War II, Luxner the Bush administration doesn’t assassinate over bureaucratic pilfering. composed hundreds of humorous and him first. The United States denies it plans to Stealing pesos is one thing and dollars patriotic poems, and well into his 80s was forcibly remove Castro or his government. quite another. As a result, quasi-autonomous still writing weekly articles on everything Western diplomats believe U.S. military in- state companies will reportedly be reduced to from racism to Middle East diplomacy. tervention is very unlikely, though they add a minimum, and a much-heralded decentral- Luxner and his wife, Trudy, moved from that Cuba is on Washington’s list of state ization of trade is being partially junked. New York to South Florida in 1953, eventu- sponsors of terrorism. This follows last year’s foreign-exchange ally settling in Margate. He belonged to the Meanwhile, the Bush administration’s rhet- controls that stripped companies of hard cur- Masons, the Jewish War Veterans and the oric has become so shrill that Havana has lit- rency in favor of convertible pesos, a local Disabled American Veterans, and along tle choice but to increase preparedness. scrip that is pegged at par with the dollar but with Trudy participated in over 40 Elder- The Cuban Communist Party has made has no value outside the country. hostel programs in a dozen states. defense a top priority this year. A Party “orien- It’s very hard to gauge how serious the sit- In addition to his wife and son, Luxner is tation” under study by over a million card car- uation is. Havana’s reserves have always been survived by daughters Marilyn Lashmore riers warns that a U.S. attack is possible and a secret, and the regime stopped reporting of Lebanon, N.H., and Adrienne Armstrong preparedness essential. current account information two years ago. of Tallahassee, Fla., and five grandchildren. February 2004 ❖ CubaNews 3 TELECOMMUNICATIONS Cuba delays crackdown against illegal access to Internet BY LARRY LUXNER claiming to be worried about the ‘freedom’ of peacefully expressing their views, gives the he Cuban government has postponed a the Cubans, even though [the critics] could authorities another mechanism for repress- measure that would prohibit the use of confirm for themselves, although it pains ing dissent and punishing critics.” T peso phone lines to connect to the Inter- them to do so, that the Cuban people are the AI demanded that Cuban authorities “do net, while allowing its use for dollars. freest people on Earth.” away with illegitimate curbs on freedom of The original restrictions were to have taken Ridiculous, says Amnesty International. expression and information, and bring their effect Jan. 24, though Empresa de Telecomu- “The new measures, which limit and legislation into line with international human nicaciones de Cuba S.A. (Etec- impede unofficial Internet use, constitute yet rights standards once and for all.” sa) has pushed that back fol- In a Jan. 24 letter to a New Zealand news- lowing an international outcry. paper, Cuban Ambassador Miguel Ramírez “The measure is to eliminate described AI’s protest as “totally biased and theft and illegal sales of pass- full of prejudices according to the values of words, intentional degradations LARRY LUXNER western and developed countries.” and non-authorized fraudulent Ramírez defended Cuba’s new law as a rea- use,” said a statement from E- sonable measure to “regulate access to [the] net, which is Etecsa’s Internet Internet and avoid hackers, stealing pass- service provider and the largest words, [and] access to pornographic, satanic ISP in Cuba. “It will limit the cults, terrorist or other negative sites.” legal and necessary use of the At any rate, Internet penetration in Cuba is Internet, protecting users, negligible. According to the Communications according to what is deter- Ministry, state-owned ISPs hosted 480,000 e- mined in our contracts.” mail accounts in 2003 (about 4.3 per 100 When it is eventually adopt- inhabitants), up from 360,000 in 2002, 100,000 ed, the move could frustrate in 2001 and 40,000 in 2000. thousands of Cubans who ille- Of the 360,000 e-mail accounts in 2002, gally access the Internet from Tourists paying in dollars check e-mail at Etecsa office in Havana. 100,000 had global access, while access for their homes, using computers the remaining 260,000 was restricted to Cuba. and Internet accounts they have borrowed or another attempt to cut off Cubans’ access to Cuba now has roughly 98,000 Internet bought on the black market. Many of them alternative views and a space for discussing users, up from 60,000 in 2002. About 270,000 pay $50 a month or more for such access. them,” the London-based organization said in computers are being used by state entities, up The Castro regime already heavily limits a press statement. “This step, coming on top from 250,000 in 2002, 220,000 in 2001 and Internet access. Cubans must have govern- of last year’s prosecution of 75 activists for 110,000 in 2000. ment permission to log onto the Web legally and most don’t, although many can access international e-mail and a more limited gov- GlobalNet wants piece of Cuban cellular market ernment-controlled intranet at government jobs and schools. llinois-based GlobalNet Corp. has won an charges 80¢ a minute to call from one cell- exclusive contract for worldwide termina- phone to another, more than $2 per minute INTERNET ACCESS IS SLOW AND EXPENSIVE I tion of voice and data mobile satellite tele- to call the United States and more than $4 a communications traffic originating in Cuba. minute to call Europe. The original plan, authorized by Commu- “It is obvious that there will be significant nications Minister Ignacio González Planas, The contract, announced Jan. 7, was grant- ed to GlobalNet by Global Telesat Corp., a demand for a mobile telephone service in would allow Internet access only for those Cuba that charges only 50¢ per minute to who pay for the service in dollars — effec- privately held company that owns the only tively shutting out the vast majority of the GPS tracking application situated anywhere call almost any destination in the world,” said Cuban population. It does, however, exempt in the world outside of the United States. Thorell, telling us that he hopes to market “those authorized by chiefs of bodies and According to a company press release, the the service to U.S. executives and Cuban- organizations of the state administration and contract is expected to utilize a gateway Americans visiting Cuba, as well as Cubans within the country’s institutions.” located in Nicaragua. But because of the U.S. with access to dollars who need to call their Ordinary Cubans as well as foreign tourists embargo against Cuba, State Department families in South Florida and elsewhere. who want to log onto the Internet must pay approval will be required before full-fledged He added, though, that callers would have around 10¢ a minute at major hotels. But the service can begin. to use special Globalstar phones in order to connections are often very slow, and a Cuban In the meantime, GlobalNet plans to take advantage of those lower rates. might end up spending his entire monthly immediately begin servicing the U.S. Naval The company, formerly known as iDial salary just for two hours of connection time. Base at Guantanamo Bay from a gateway sit- Networks Inc., is one of the top 10 U.S. serv- The Cuban government claims Internet uated somewhere in Puerto Rico. ice providers of outbound traffic to Latin connections are so expensive because of the “Provided we can pass any regulatory America, and counts among its customers U.S. embargo, and that there must be an issues involved, that would be the next mar- more than 30 Tier 1 and Tier 2 carriers. orderly, social versus individual, process of ket we’d like to move into,” said Robert GlobalNet is also active in the Middle going online. Thorell, GlobalNet’s chief operations officer, East, where it recently won contracts to sup- On Jan. 18, González told the newspaper in a phone interview with CubaNews. “There ply communications services in Iraq and Juventud Rebelde that “everywhere, every day, is no reason we can foresee that would pre- Libya, subject to State Department approval. measures are taken [in other countries] to vent us from marketing the service in Cuba.” Details: Rob Thorell, GlobalNet, 18851 NE prevent disorder, which is essential if the Web GlobalNet says any new mobile phone 29th Ave., Suite #700, Aventura, FL 33180. is to function well. When we ourselves take contract covering Cuba should be a windfall Tel: (954) 536-9427. Fax: (954) 252-4658. certain basic measures to control illegality, for its inhabitants because Cubacel currently E-mail: [email protected]. criticism immediately flares up from people 4 CubaNews ❖ February 2004 FOREIGN TRADE Reality check: Not all U.S. companies want to sell to Cuba BY VITO ECHEVARRÍA Goya reported sales of $735 million in 2002, New York, Miami, Los Angeles, Chicago and n 2003, the United States became Cuba’s and a projected 7% increase in sales for 2003 San Juan, Puerto Rico. seventh-largest trading partner, surpassing — with a loyal customer base among Hispanic Meanwhile, Goya is setting its expansion Ieven long-time buddies Canada, Mexico Americans along the East Coast, including efforts on more potentially lucrative markets Cubans residing in Florida and New Jersey. along the West Coast and Mexico itself — and France. where the firm is still not a household name. Raúl de la Nuez, Cuba’s foreign trade mini- Rafael Cuéllar, president and CEO of Eco & Sons, the holding company for Passaic-based Another U.S. food company that has opted ster, told the official business weekly Opcio- out of competing for busi- nes that Cuba imported more than 300 differ- ness with Cuba is Badia ent U.S. agricultural products in 2003, valued Spices, owned by 57-year-old at $343.9 million. Cuban-American business- Leading U.S. food exports to Cuba were man José “Pepe” Badia, who soybeans, soy oil, corn, wheat and rice; last left Cuba for Miami in the year, in fact, Cuba ranked in the top 30 of 224 early 1960s. worldwide markets for U.S. farm products. The firm, which started “It is rather astonishing that in a mere 26 out as a mom-and-pop outlet months, the United States has moved from operating out of Badia’s nothing to Cuba’s largest single source of garage, has transformed agricultural and food products; 5th-largest itself into a major spice sup- source of imports and 7th-largest overall trad- plier that registered $30 mil- ing partner,” said John Kavulich, president of lion in 2003 sales. the U.S.-Cuba Trade and Economic Council, Interestingly, Badia prod- in an interview with Reuters. ucts share shelf space with The news comes as U.S. food exporters and Goya products at the ethnic state governments from South Carolina to foods section of various Montana stumble over each other in a rush to supermarkets throughout curry favor with Fidel Castro and come away the United States. with lucrative contracts. José Badia wouldn’t speak Yet some U.S. food companies are refusing Hispanic food imports could soon line supermarket shelves in Cuba. to CubaNews, though a Badia to trade with Cuba for a variety of reasons — Spices executive who asked from personal convictions against doing busi- President Supermarket, summed it up best in not to be identified dismissed the possibility ness with the Castro regime, to practical busi- NJ Monthly Magazine last October: “If you’re of his firm ever selling into Fidel’s Cuba. ness considerations such as the threat of boy- Puerto Rican or you’re Cuban or you’re more Another firm refusing to comment for this cotts from irate Cuban-American consumers of a Caribbean background, Goya is a staple article is Puerto Rico-based rum giant in South Florida. in your diet.” Bacardi Corp. Although rum is not listed One of those companies is Goya Foods, a Even if Goya Foods were to decide to sell to among the food and liquor products that U.S. New Jersey-based Latin foods giant whose Fidel’s Cuba, it would spark a public relations firms are authorized to sell to Cuba, malt bev- president, Joseph Unanue, was the son of nightmare for the company, since this would erages are, and the Bacardi Silver line of fruit- Spanish immigrant Prudencio Unanue, who risk incurring the wrath of not only its size- flavored malt beverages would be a likely hit settled in Puerto Rico 100 years ago. able Cuban-American customer base, but also within the Cuban tourist sector. With renewed U.S. food exports to Cuba, the Cuban exile-controlled media entities that However, given Bacardi’s ongoing legal bat- it’s not hard to imagine seeing Goya’s trade- run its ad campaigns, such as the Miami- tles with the Havana Club venture between mark canned beans and vegetables lining the based Spanish Broadcasting System. the Cuban government and France’s Pernod shelves of Havana’s dollar stores. SBS is owned by Cuban-American media Ricard — not to mention the Bacardi family’s Yet that’s not likely to happen anytime titan Raúl Alarcón Jr., who controls 25 Span- bitter hatred of Castro — it’s extremely un- soon, despite the fact that the Unanue family ish-language radio stations in eight of the likely that Bacardi rum will ever be sold in and Goya Foods itself are Puerto Rican — country’s largest Hispanic markets including Cuba during Castro’s lifetime. with no past family or corporate ties to Cuba. In fact, the Unanues have gone on record to reject any business prospects with Cuba’s Alimport hires Savage to handle Tampa service current Marxist government. limport has selected A.R. Savage & tremendous impact,” Savage told the news- Goya Foods not only didn’t return phone Son Inc. as its shipping agent for paper. “You’ve got a country that needs to be calls for this article, but referred to CubaNews goods sent from Tampa Bay, reports largely rebuilt or replaced once U.S. invest- at least three company officials — including A the . ment is allowed down there.” two public-relations executives, Rafael Toro St. Petersburg Times CEO Arthur Savage said his company has Savage, who seeks an end to the embargo, and Rudy Quant — who refused comment. already handled eight shipments of dicalci- heads a Greater Tampa Chamber of Com- However, in November 2002, Goya told the um phosphate (an animal feed supplement) merce task force to inform business leaders that it will not sell its prod- Orlando Sentinel from Tampa, Florida’s Port Manatee and var- about opportunities and push for direct ship- ucts to the Castro regime. ious private ports to Cuba. ping service between Tampa and Cuba. Robert Unanue, one of Joseph’s sons and Although trade with Cuba remains limited, Savage’s cousin, John Parke Wright IV, has head of Goya’s Florida division, stated in the the Alimport designation may give Savage shipped at least 250 head of cattle to Cuba March 2001 issue of the American Chamber the inside track if it expands over time. and represents Savage’s business there. of Commerce of Cuba newsletter that “we’d “Even with the horrendous restrictions, Details: A.R. Savage & Son, 1803 Eastport only do business with a free Cuba, without [trade with Cuba] is having a good impact on Dr., Tampa, FL 33605-6709. Tel: (813) 247- Castro. We have loyal customers in the U.S., the area and in the future, it will have a and we have to respect their opinions, too.” 4432. E-mail: [email protected]. February 2004 ❖ CubaNews 5 TOURISM BRIEFS BLAU HOTELS TO MANAGE HOTEL IN CAYO COCO In their own words … Spain’s Blau has taken over management of the Hotel Colonial Cayo Coco in Jardines del Rey. “Spielberg went down there and said, ‘The best seven hours I ever spent was The four-star property has 342 rooms and was with Fidel Castro.’ What I want to ask him, and I know he’s going to get pissed inaugurated 10 years ago, when there were no off, is, ‘Would you consider building a little annex on the Holocaust museum other hotels on Cayo Coco. or at least across the street to honor the dead Cubans that Castro killed?’” Two years ago, Blau signed a contract to man- — Actor Robert Duvall, blasting as “presumptuous” a 2003 meeting between Cas- age the 166-room Hotel Club Arenal, located at tro and Steven Spielberg, in an interview with Charlie Rose on “60 Minutes II.” Playa del Este, east of Havana. The chain already runs seven hotels in Majorca and one in the “It’s time to remove Castro once and for all, by force if necessary. He’s had Dominican Republic. It will inaugurate another free reign for too long.” hotel in Varadero in late 2004, and plans to open — Larry Klayman, campaigning Jan. 27 in Orlando. Klayman, a former U.S. a 4th property in Ciego de Avila’s northern keys. attorney, is one of five Republicans and three Democrats seeking the vacant Details: Philippe Gonin, Gen. Dir., Blau Hotels, Senate seat created by the retirement of Sen. Bob Graham (D-FL). Avda. Conde Sallent 10, 07003 Palma de Mallorca, Spain. Tel: +34 971 757-657. Fax: +34 971 295-304. URL: www.blau-hotels.com. “I am totally for a regime change in Cuba, but we must do it by peaceful means unless it’s apparent that Castro is a more obvious threat than he GOVERNMENT HOPES TO LURE SCUBA TO CUBA appears to be today.” — Fellow GOP candidate , commenting on Klayman’s statement. With an average of 100,000 dives by 25,000 Mel Martínez divers from around the world, Cuba is rapidly becoming a top destination for scuba divers. “I don’t care how I die. But rest assured: if they invade us, I’ll die in combat.” Miguel Alejandro Figueras, a diving specialist — Fidel Castro, in a Jan. 30 speech during which he charged President Bush of with the Ministry of Tourism, said Cuba now has conspiring with the Cuban American National Foundation to assassinate him. 37 international diving centers, 551 ideal sites for diving, 150 certified diving guides and nine “Spain’s interest and its perseverance ensure that the suffering inflicted by decompression chambers. the Castro dictatorship on the Cuban people is not forgotten.” The country also boasts an unusual variety of — Ricardo Bofill, head of the Cuban Committee for Human Rights, speaking coral fauna and sunken ships to support an inter- Jan. 30 in Madrid during the International Congress on Cuban Culture. est in underwater dives. Figueras speaking at the recent Expobuceo div- “It’s bad business to lobby Congress on behalf of a dictatorship. We can call ing fair held in Varadero, said that in 2000, there them nothing less than shills for Fidel Castro.” were six million certified divers in the world, a — number expected to rise to 10 million by 2005. Rep. Bob Menendez (D-NJ), commenting on trade accords signed between Cuba’s Alimport and various state governments including Kansas and South Carolina. The industry generated $6 billion worldwide in 1998 and should reach $11 billion by 2005. Cuba hopes to lure 100,000 scuba divers to its “José Martí inspired the struggle against an empire that seized Puerto Rico shores annually, competing with Aruba, Bonaire, in 1898. So it is reciprocal solidarity to honor Martí and demand the release of Cayman Islands and the Turks & Caicos Islands. five Cubans imprisoned in the United States for fighting against terrorism.” State entities involved in this effort include — Jorge Farinacci, leader of Puerto Rico’s Partido Revolucionario de los Trabaja- Puertosol, Gaviota, Cubanacán Náutica, Horizon- dores (PRTP-Machetero), speaking on the 151st anniversary of Martí’s birth. tes Hoteles, Rumbos, Cubamar and Club Habana. “You don’t have to encourage Bush to talk about Cuba. The president is pas- BARCELÓ PLANS MEGA-HOTEL FOR SANTA MARÍA sionate about Cuba. He says the same things in private that he says in public.” Spain’s Barceló hotel chain plans to build an — Otto Reich, the White House envoy on Latin America, speaking at a Jan. 13 enormous 5-star hotel at Cayo Santa María, as conference in Washington on humanitarian assistance to a post-Castro Cuba. part of its 2004-05 expansion plan. According to a Cuban government report, the “It’s prudent for us, as Castro gets older and his regime gets rustier, to start hotel will be inaugurated in December 2006 with thinking about the fate of millions of people in Cuba who one day will be free.” a reported 2,361 rooms. Barceló will also open a — Secretary of State Colin Powell, in recent comments to reporters. 4-star hotel in Varadero “with a capacity for 896 guests.” It was unclear from the report whether that means 896 rooms or 896 beds. “They recently said I receive advice from Cuba on how to overthrow presi- Two more Barceló properties will open later dents. These men are sick, because they only accuse and do not present evi- this year, at Cayo Santa Lucía and Guardalavaca. dence. We must help these White House men by finding them psychiatrists.” — Bolivian opposition leader Evo Morales, speaking Jan. 29 in Havana. CHINESE TOUR GROUP IS ONLY THE BEGINNING Twenty Chinese tourists arrived in Havana on “In the end, we feel it’s a lot of bureaucracy and red tape. We feel that the in- Jan. 21, representing the first-ever organized tention of the policy is to keep American people and Cuban people separated.” group of Chinese visitors to the Caribbean island. — Rachel Bruhnke, coordinator of the Eco-Cuba program for San Francisco-based “This event undoubtedly will strengthen econo- Global Exchange, whose “people-to-people” Cuba travel license expired Dec. 31. mic, commercial and cultural cooperation between China and Cuba,” said Carlos Lahhite, “They have earned their way into this country, just by what they’ve man- an official with Cuba’s Ministry of Tourism, fol- aged to do. What more must they do to show how desperate they are?” lowing the signing of a bilateral memo last July. — Oramia Basanta López, sister of one of 11 Cubans who tried unsuccess- Lahhite says China is a strong market, with the fully to cross the Florida Straits in a ‘59 Buick outfitted with propellers. potential to send up to 20,000 tourists to the Caribbean island every year. 6 CubaNews ❖ February 2004 The sudden influx of boaters to Cuba could Boating enthusiast Lee E. Lyon owns Mari- Marinas— FROM PAGE 1 also help South Florida, said David Ray, exec- time Services Group Inc. in Naples, and is a crew members. The United States alone ac- utive director of the Miami-based Marine past-president of the Marine Industries counted for 69% of the marina’s visitors; near- Industries Association of Florida Inc. Association of Florida. ly all the remainder came from Europe. Ray says yacht owners from Northeastern Lyon, who has sponsored Escrich on previ- According to a report prepared by Escrich states — lured ous visits to Florida, says about half of 45 and presented at a recent meeting of the In- to an island yacht owners his company represents would ternational Council of Marine Industry Asso- that’s been off- go to Cuba if the law allowed it. So would ciations (ICOMIA), the Cuban government foresees developing marinas in three stages. The first stage, in effect since 1999, con- sists of widening and improving existing facil- ities in places like Varadero, Cayo Blanco and LARRY LUXNER Santiago de Cuba. Most of these marinas were built when yachts were smaller, hence the slips are obsolete. The second stage involves building new facilities: these include Marina Gaviota Vita, Marina Gaviota Cayo Las Brujas and Marina Gaviota Cayo Ensenacho. limits to boa- “The third stage consists of building new ters for 45 marinas in more remote regions,” he says, years — would “with the objective of creating a national mari- have to use na network that guarantees a safe and com- Florida’s mari- fortable navigation along Cuba’s coasts.” na facilities on Plans call for boosting the number of mari- the Intracoas- nas from 19 to 38, with space for over 6,400 tal Waterway vessels. State entities leading this effort in- and along the Commodore José Miguel Díaz Escrich (inset) and Havana’s Marina Hemingway. clude Puerto Sol, Cubanacán Náutica, Gaviota state’s south- and Habaguanex. west Gulf coast on their way down to Cuba. thousands of other South Florida boaters, In 2001, Cuba received 2,083 yachts and Terry McCoy, director of UF’s Latin who would bring their families and spend other pleasure craft, with Marina Hemingway American Business Environment Program, money in the island’s restaurants, museums accounting for 1,155 vessels, or well over half said there’s even more interest in Cuba on the and souvenir shops. the total. The other facilities, in descending part of recreational boaters than when his And it wouldn’t take that long to get there, order of port calls, were Cienfuegos (277); office conducted the study 10 years ago. either. Traveling at 20 knots, the average Dársena Varadero (206); Marina Vita (113); “There would be tremendous interest by boating enthusiast can make it from Naples to María La Gorda (66), Coco-Guillermo (57) boaters in the southern United States to go to Key West in five hours; it’s another five hours and Cayo Largo (42). Cuba once it becomes legal, and Cuba is rela- from Key West to Havana. In 1994, the University of Florida did a stu- tively accessible for any boat basically 25 feet Yet McCoy is skeptical. dy on how the recreational boating industries and longer,” he said. “Almost everybody has “I don’t know the extent to which the of both Cuba and Florida would be affected if to go through Florida to get to Cuba. If you Cubans are really ready for that,” he said. U.S. citizens were allowed to visit Cuba and look at the currents, I don’t think it’s reason- “They talk a big game, but I don’t think there spend unlimited amounts of money there. able to go all the way from Texas and is a lot of recreational boating down there.” “The general consensus is that, in the first Louisiana without stopping in Florida.” See Marinas, page 7 year after lifting the travel ban, 60,000-80,000 yachts will arrive in Cuba,” said Escrich. “That CojÌmar Tarar would produce a gigantic jump in U.S.-Cuba BahÌa de Jibacoa boat traffic. We’re concerned that our mari- La Habana t p Marina t nas won’t be able to handle that much traffic.” Hemingway Santa Cruz C FC del Norte

Jaruco HAVANA A1 JosÈ MartÌ C Cayo A1 Int-l airport t t Bauta C p p G Guillermo cc Cayo Levisa Bejucal 15 30 kilometers Gaviota 0 Cayo ParaÌso t Area Enlarged Area Enlarged La Guasa Gaviota Armando H. Portela 10 20 miles C G G Aguas Tranquilas Cayo Piedras Dimas Pinar del Río p C Drsena de Santa Varadero C Cayo Cruz y t Clara t a G ChapelÌn Los Cienfuegos B p s a Gaviota Varadero Morros Sancti z n Ciego de t a G CortÈs Nueva Gerona SpÌritus Santa a t p Avila M Juan G. GÛmez LucÌa Int-l airport p Cienfuegos Crdenas El Colony MATANZAS La Bajada p p p AncÛn p t Cayo Largo J˙car o p Punta Camag¸ey Cobarrubias del Este C Las Tunas t G C NAUTICALCUBA’S FACILITIES NAUTICAL FACILITIES G Caballones t Area Enlarged Company Existing Projected HolguÌn Baracoa C G BahÌa Puerto Sol p Cayo Bayamo G de Mata Caguama Santiago Guantnamo Cubanacn C C de Cuba Gaviota G G C C t Guantnamo Marea del Portillo Santiago de Cuba Habaguanex February 2004 ❖ CubaNews 7 FOREIGN TRADE MINVEC: Joint ventures dropped from 403 to 342 in 2003 BY OUR HAVANA CORRESPONDENT MINVEC’s own statistics show that around In spite of the tense relations between Cuba uba had 342 active joint ventures at the 80 of the joint ventures now active are operat- and the 15-member EU, British, Italian and end of 2003, down from 403 when the ing beyond Cuban shores. Spanish executives continued to arrive; so did These J-Vs include a shirt facto- representatives from Eastern Europe, mainly year began, says the Ministry of Foreign guayabera C ry in Namibia, a Coppelia ice-cream plant in Russia, the Czech Republic and Bulgaria. Investment and Economic Cooperation. Malaysia, a “Bodeguita del Medio” restaurant Among MINVEC’s most important achieve- That’s a 15% drop and the first decline since in Dubai and stakes in two hotels at the Mexi- ments of 2003, said Lomas, were the reopen- such ventures were legalized more than a can beach resorts of Cozumel and Cancún. ing of cooperation in terms of credits for decade ago. A more rigorous approval pro- The University of Miami’s Institute for development, as well as stronger trade links cess for partnerships with foreign companies Cuban and Cuban-American Studies (ICCAS) with Vietnam and China. — not to mention the ongoing political spat says one-fifth of the island’s J-Vs are now in- In fact, Chinese firms are negotiating to with the European Union — were apparently corporated or operating abroad, whether in participate in nickel mining, rubber produc- to blame for the drop. Latin America, Africa, Asia or Europe. tion and oil prospecting in the Gulf of Mexico. MINVEC’s minister, Marta Lomas, told “Cuba’s policy of promoting overseas in- Soft credits for development projects ap- reporters in January that despite the smaller vestments bespeaks a tacit acknowledgement proved in 2003 came to $429 million. Of that number of mixed enterprises, income and ex- that the current economic climate within total, China contributed $9 million. The Orga- ports rose 13% in 2003, while profits per dollar Cuba is less than attractive for many firms, nization of Petroleum Exporting Countries invested were higher than in 2002. including those owned and run by the Cuban (OPEC) granted another $10 million for up- According to Lomas, Spain accounted for state itself,” ICCAS said Dec. 19. grading irrigation systems, while Kuwait gave 98 ventures, more than any other country, fol- “With more than 20% of foreign direct in- a similar amount for improving water supplies lowed by Canada (52), Italy (51), France (15), vestment now directed towards business ac- in the province of Santiago de Cuba. Mexico (11), China (10), United Kingdom tivities and joint ventures outside of Cuba, and On another subject, Lomas said Cuba main- (9), Germany (9) and Panama (8). That com- negligible net inflow of foreign capital within tains 876 collaboration projects with 165 coun- pares with 2002, when Spain had 105 ven- Cuba itself, Cuba’s state-owned enterprises tries in health, education and sports. In addi- tures, Canada 70 and Italy 57. have realized that they too can obtain a better tion, 120 joint commissions have been formed Only seven ventures were established dur- return on investment elsewhere.” to periodically review existing programs and ing 2003, down from 24 in 2002; on the other Even so, in 2003, the number of business implement others. hand, said MINVEC, Cuba had 313 coopera- visitors to Cuba jumped by 46% to 3,242. They Details: MINVEC, Ave. 1ra y 18, Playa, Ha- tive production agreements in place last year, came from 85 nations, led by the United bana. Tel: +53 7 209-2828 or 204-3100. Fax: up from the 270 reported a year earlier. States, Mexico, Brazil and South Korea. +53 7 204-3496. E-mail: [email protected].

Marinas — FROM PAGE 6 New marina eases access to western tip of Cuba Escrich says the Hemingway International Yacht Club, founded in 1992, has 1,546 mem- achts traveling from the U.S. to previously people could only reach by sea. bers from 46 countries including the U.S., Mexico’s Yucatan Peninsula now have Construction started after an environmental Italy, Spain, Canada, France and Germany. Y a convenient port for a landfall at Cabo impact study was made to assure it would Not surprisingly, many of the club’s 400 San Antonio, the westernmost tip of Cuba. not harm the region’s flora and fauna. U.S. members hail from Florida. Owned by state-run Gaviota S.A., an arm Designed for short stays, the marina has “Our club has a long and friendly relation- of the Cuban military, the new marina at Los space for five large yachts with an expansion ship with the South Florida boating commu- Morros began operations Nov. 13. planned for the post-embargo period. nity, and we have members from Tampa, St. With a breakwater 110 meters from the Visiting boats will pay 40 cents per foot Petersburg, Naples, Marco Island, Key West, coast, vessels crossing the waters between daily for electricity (110v or 220v) and water. Fort Myers and Sarasota,” says Escrich, “but the Yucatan and Cuba’s Guanahacabibes Both gasoline and diesel fuel are available. from Miami, very few. In Miami, people are Peninsula are already receiving services, The control depth is 2.4 meters and the afraid to associate with a Cuban yacht club.” according to Julio Camacho Aguilera, direc- dockmaster can be reached by VHF radio on He explained that “after 2000, when Presi- tor of Gaviota’s regional development office. Channel 16. Customs officials reside at the dent Bush came into office, the regulations Previously, boats traveling from ports as marina and can issue cruising permits. became more and more strict. Last year, the far west as Texas to the Yucatan would sail Inauguration of the Cabo San Antonio International Gamefish Association was told along the Gulf Coast to Key West and cross marina signals Cuba’s increasing attention to the Gulf in one 12-hour day. that they could no longer visit Cuba.” The only alternative — a straight shot the needs of visiting boaters, and the island’s Nevertheless, Escrich is regularly invited across the Gulf — required spending over- determination to become a prime cruising to the Miami International Boat Show; he’s night on the open ocean, far from ports of destination. Visitors coming in boats tend to done presentations at the Naples Yacht Club refuge, and resorting to the dangerous prac- be big spenders. and proudly displays the keys to the City of tice of lugging extra fuel in canisters. Helping Cuba was a recent decision by the Fort Lauderdale. Visitors arriving by yacht will also have Bahamian government to raise (and subse- He’s also one of the few Cuban officials the opportunity to explore the pure isolation quently retract) the price of cruising permits who’s also an honorary citizen of Key West. of Cabo San Antonio, a sparsely populated, issued to visiting yachts. The move so “I’ve been to Florida five times,” said undeveloped area with little-known swamps angered the South Florida boating commu- Escrich, whose office is dominated by a huge and deserts, where a handful of farmers of nity that a boycott ensued. Many of these portrait of Hemingway. “The last time I tried Korean descent tend small plots of land. boaters look forward to a time when they to visit, they denied me a visa. Every time I’ve To facilitate investment in such a remote can cruise to Cuba free from the watchful applied, there’s been some kind of inconven- part of the country, a 37-mile road is being eye of the U.S. Treasury Department. ience. But our friends in the Florida boating built to Cabo San Antonio, a point to which – DOUGLASS G. NORVELL industry have always helped me.” 8 CubaNews ❖ February 2004 NEWSMAKERS James Cason: Washington’s lonely diplomat in Havana BY LARRY LUXNER other’s countries, after 17 years of no diplo- diplomats here, including Sven Kühn von matic relations at all. Burgsdorff, chargé d'affaires of the European e doesn’t get around much lately, but Union mission in Havana. James A. Cason, chief of the U.S. Inter- Cason, a New Jersey native and most recently a resident of Virginia, has been at Last month, von Burgsdorff told CubaNews Hests Section in Havana, certainly enjoys that “we are not invited to any government a sweeping, panoramic view of Havana. USINT since September 2002. Before that, he worked at the State Department’s Bureau of receptions. We can only communicate in writ- From his spacious 5th-floor office overlook- ing with Cuban officials through formal notes, ing the Malecón, Washington’s top diplomat Western Hemisphere Affairs as director of policy, planning and coordination. and very often, we don’t even receive a reply.” here can gaze out as far as the horizon to the Yet Cason doesn’t seem to care. Straits of Florida, or as close as the Anti- Cason has served in 14 countries besides Imperialist Plaza, where Fidel Castro periodi- Cuba, including Portugal, Italy, Uruguay, “Our objective is not necessarily to have cally hosts noisy demonstrations in order to Bolivia, Venezuela, Jamaica, Panama, Hondu- good relations with Cuba, but to carry out the provoke the U.S. officials working next door. ras and El Salvador. A former Fulbright Scho- president’s policy, to make sure our values “It’s certainly an interesting place,” Cason lar in Uruguay, he has a bachelor’s degree in and principles are respected,” he said. “I’ve told us in a recent interview. “Obviously, we international relations, with a major in Latin never met Castro, nor would I ever want to.” don’t have diplomatic relations with Cuba. We’re in a unique position, in terms of the way we’re treated because of the Cubans’ efforts to contain us. In most countries, we’d be able to travel around freely. Here, we have to stay LARRY LUXNER within the fence, so to speak. To my know- ledge, we’re the only mission that cannot trav- el outside Havana — even to go to Varadero.” The 59-year-old diplomat says he made it clear from his first day on the job that he “wanted to get out and see the country.” Cason did, in fact, manage to log over 6,000 miles of travel throughout the island before being restricted to a 450-square-mile area of the capital city and its immediate suburbs. That’s similar to the restrictions placed on the Cuban Interests Section in Washington, whose diplomats may no longer venture be- yond the Beltway without explicit permission. “The only time we can leave Havana is to visit American citizens who are being held in Jim Cason, chief of the U.S. Interests Section in Havana (above). prison,” he said. “We’re also allowed to make repatriation trips so we can meet ships bring- American studies from Dartmouth College, The decorations in Cason’s office reflect ing back Cubans who have tried to flee to the and a master’s from the Johns Hopkins his disgust with Marxism. Prominently dis- United States.” School of Advanced International Studies. played on a coffee table, for instance, are sev- Asked what qualifies him to serve in Cuba, eral books including Ben Corbett’s “Cuba: An NO LAPTOPS IN CASON’S OFFICE Cason replied that he didn’t seek out the posi- Outlaw Culture Survives” and “Against All Jim Cason isn’t the easiest person to inter- tion but was asked by the Bush administra- Hope: A Memoir of Life in Castro’s Gulag” by view. Our hour-long meeting came only after a tion to take the job after his predecessor, Armando Valladares. year and a half of e-mails, phone calls, rejec- Vicki Huddleston, was named U.S. ambassa- On one wall is a Stephen Spielberg-auto- tions and State Department delays. dor to the Central African nation of Mali. graphed movie poster from “The Lost World: The day before our visit, the mission’s pub- “I’m a career diplomat, and have been in a Jurassic Park” — a clear reference to the cur- lic-affairs chief established the ground rules: lot of tough places — Portugal during the rev- rent state of affairs in Cuba. we could ask Cason anything we wanted, but olution, Panama during Noriega. I’ve been in He’s also got two decks of cards: one all quotes would have to be cleared before government for 35 years, and they were look- depicting the 55 most-wanted Iraqi officials publication. Furthermore, no cameras or lap- ing for a certain management style.” under Saddam Hussein, and another one sim- top computers were to be brought up to the ilarly lampooning Castro and his cronies. 5th floor — only a notebook and pen. LIMITED ACCESS TO CUBAN OFFICIALS But the most curious artifact in Cason’s Once the interview was underway, we The Cubans weren’t too happy to receive office is a plaque honoring his participation in learned another interesting little detail: for Cason, who complained that Foreign Minis- the September 2002 U.S. Food & Agribusi- security reasons, no Cuban nationals are ever try bureaucrats made him wait 48 days for a ness Exhibition in Havana. allowed into Cason’s office. visa, and since then have severely restricted At that event, Cason was widely criticized “This is a police state,” said Cason, explain- his contacts with government officials. for his angry comments to U.S. exporters ing the stringent rules in force at the Interests “They used to have Ricardo Alarcón [presi- about seeing “more bull than beef,” and by Section (known by the State Department as dent of the National Assembly] deal with us,” warning exporters about doing business with USINT). “The government can do whatever it he said, “but from the moment I arrived, it Castro’s “Freddie the freeloader” economy. wants. Control of the population by the secu- was made clear that we’d only be allowed to But Cason justifies his views more than a rity forces is the No. 1 goal of this regime.” talk to one or two people in the government, year after the event, which lured 750 U.S. exe- USINT has been operating in Havana since namely Rafael Dausa and anybody he hap- cutives to Havana at a time of unbridled opti- 1977, when Castro and then-President Carter pens to bring along.” mism about the future of U.S.-Cuba relations. agreed to open low-level missions in each That’s a gripe echoed by other Western “What I said about their creditworthiness February 2004 ❖ CubaNews 9 was 100% right,” the diplomat told CubaNews. and is enthusiastic about carrying them out.” employees faced constant harrassment by “Most businessmen recognize they have the Smith, who headed the U.S. Interests Cuban officials. best possible deal with TSRA [the Trade Section under the Carter and Reagan admin- Much of that harrassment came in the form Sanctions and Reform Act], which allows cash istrations from 1979 to 1982, is now an out- of slashed tires, surveillance of personal tele- sales for anything agricultural. If they pay spoken opponent of U.S. policy toward Cuba. phone calls, smashed car windows and feces cash and it’s food, they can buy it. “The objective of the Bush administration deposited in the homes of U.S. diplomats. “But don’t try to get credit because you’re is to bring an end to the Castro government. These incidents and more were detailed in a not going to get paid. The Cubans want to get What gave the United States the right to declassified State Department memo to Con- these people to become active in changing decide that the Castro government has to gress (see CubaNews, March 2003, page 3). U.S. domestic legislation, so they need cash, end? I talked to the leading dissidents in “The fact that it appeared in public embar- and the Europeans are lending them money December and they all said that that’s up to rassed them, and so that seems to have stopped,” said Cason. What hasn’t stopped is Cason’s insistence on meeting with a variety of dissidents at his “Our objective is not necessarily to have good relations official residence, and the practice of inviting them to all official USINT functions. with Cuba, but to carry out the president’s policy, and to This practice was eventually adopted by the 15-member European Union, despite the fact make sure that our values and morals are respected.” that some of these dissidents were later dis- — JIM CASON covered to be spies working for state security. “A lot of the dissidents here know who was embedded, so it wasn’t a great surprise. Peo- ple who weren’t bona fide came here all the at high short-term interest. It’s not a produc- the Cuban people.” time trying to establish credentials, even ask- tive economy and never will be.” Yet Smith didn’t meet with Cason this past ing for money,” he said. “We’ve made clear we Cason adds: “A large percentage of the food visit. “I so strongly disagree with what they’re were not here to tell them what to do or give being purchased here is being sold to doing that I don’t seek interviews with them out money. The dissidents used my residence European and Canadian tourists. They’re try- any more because it just leads to arguments.” as a place to meet. If they were independent ing to get repeat business by improving the At the moment, USINT has 51 diplomats, a journalists, we’d allow them to surf the net.” food so that people will come back.” limit of 120 “temporary duty” officials and Since Castro’s jailing of 75 dissidents, jour- over 300 Cuban employees hired directly nalists and independent librarians, and his CRITICS SAY CASON IS JUST DOING HIS JOB through state agency Cubalse, which Cason execution of three ferry hijackers nearly a Miguel Alvarez, a top adviser to Alarcón, says “is probably more than all the other mis- year ago, relations between Cason and other says Cason is only doing what he’s told and sions in Havana combined.” diplomats here — especially those from Eur- that the Cuban government’s hostility toward ope — seem to have improved considerably. him is nothing personal. NO HARRASSMENT, BUT TENSIONS STILL HIGH “We differ on the embargo, but most of “He changed the rules of the game with his Besides issuing the required 20,000 visas a them have no romantic illusions about this attitude toward Cuban domestic affairs. But I year as stipulated under the 1994-95 U.S.- government,” said Cason, pointing to the fact think he’s doing his job,” said Alvarez (see Cuban Migration Accords (see box below), Ca- that his Spanish and Italian counterparts are CubaNews, Jan. 2004, page 4). “Cason is fol- son says “we do market basket studies peri- now taking as much heat for their criticism of lowing the instructions of the State Depart- odically, and we talk to Cubans all the time. human-rights abuses as is the United States. ment, so he’s not the problem.” We take the pulse of what’s going on here.” “Fidel Castro does not care about the well- Former U.S. diplomat Wayne Smith agrees. The mission, technically an annex of the being of the average Cuban citizen,” conclud- “Jim Cason is just following orders. The Swiss Embassy, underwent a $20 million ren- ed Washington’s man in Havana. “If he did, he problem is that the orders he’s following are ovation in 1996-98 and is now “a very nice would just snap his fingers and make things wrong. My sense is that he agrees with them facility,” he said, though for awhile its U.S. better.” U.S. calls off migration talks as Castro fumes over transition committee n Jan. 7, U.S. officials suspended bilateral migration talks with The main issues Cason says he wants to discuss are as follows: Cuba — just one more sign that relations between Washington Cuba’s obligation under the accords to issue exit permits to all Oand Havana are getting worse. qualified migrants, a matter of basic fairness. Jim Cason, chief of the U.S. Interests Section in Havana, said the Cuban cooperation to hold a new registration for the Cuban visa talks were cancelled because Cuban officials refused to discuss sev- lottery. eral key issues, including Havana’s failure to grant exit visas to about the need for a deeper Cuban port for repatriations by the U.S. 200 Cubans who had been issued permanent U.S. entry visas. Coast Guard to ensure safety of life at sea. “Migration talks are not mandatory under the Migration Accords,” Cuba’s reponsibility under the accords to permit USINT person- Cason said in a prepared statement supplied to CubaNews by public nel to travel outside Havana to monitor returned migrants, and Cuba’s affairs officer Kelly Keiderling in Havana. “Most important is that obligation under international law to accept the return of Cuban American and Cuban government officials regularly discuss migra- nationals determined to be excludable from the United States. tion issues to encourage only a safe, legal and orderly migration from “As soon as the Cuban government lets us know that it is ready to Cuba to the United States.” discuss a productive agenda, we’ll be ready to consider scheduling Cuba’s Foreign Ministry blames Washington for the breakdown in another round of migration talks,” said the USINT chief. talks — which since the mid-1990s have been held every six months Meanwhile, Castro continues to attack the Bush administration’s — accusing the Bush administration of “seeking new pretexts to formation of a Cuba transition committee in Washington to “oversee aggravate tensions between the two countries.” a peaceful transition to democracy in Cuba” once Castro is gone. Cason said his staff “we would agree to schedule talks when they Asked about Castro’s angry reaction to the committee, headed by agreed to discuss long-pending issues related to migration. We raised Secretary of State Colin Powell, Cason told CubaNews: “We don’t have these issues in the last six sessions of talks, to no avail.” any comment on Fidel’s comments on Colin Powell’s comments.” 10 CubaNews ❖ February 2004 LEGAL AFFAIRS PTO upholds Havana Club trademark, in defeat for Bacardi BY LARRY LUXNER ture (the government pays no taxes and so can pocket more of the prof- division of the U.S. Patent and Trademark Office in Washington its than Pernod). In terms of exports, Havana Club is the 4th-biggest has rejected motions to cancel the U.S. registration of the moneymaker for the state, after mining, tobacco and fishing.” A Havana Club trademark. That’s why holding onto the Havana Club trademark is so important The Jan. 29 ruling by the PTO’s Trademark Trial and Appeal Board for both the Cuban government and Pernod Ricard. upheld the validity of the U.S. registration and its most recent renewal Orr says the “the decision also reaffirms that the TTAB and the by Havana Club Holdings (HCH), a joint venture formed by courts are fully capable of adjudicating matters involving Cuban-origin France’s Pernod Ricard and the Cuban government in 1993. trademarks in a fair and impartial manner. To ensure this continues to “Pernod Ricard applauds the TTAB’s decision be the case, we look forward to working with the many supporters of affirming the validity of the U.S. registration of the proposed U.S.-Cuba Trademark Protection Act, within Congress the Havana Club trademark,” said Mark Z. and the U.S. business community, to bring about the repeal of Section Orr, vice-president of North American affairs 211 as soon as possible.” at Pernod Ricard USA in Washington. “We com- Section 211, which prohibits U.S. courts from protecting the rights mend the TTAB for reaching a fair and correct of expropriated Cuban trademarks, was slipped into a massive 1998 decision based solely on the merits of the case.” spending bill at the behest of Bacardi. At issue was a petition requesting the cancella- Among other things, the U.S.-Cuba Trademark Protection Act tion of the registration on the grounds that it was reg- would repeal Section 211. It would also direct the PTO to establish istered in the United States under allegedly fraudulent a registry of U.S. trademarks in Cuba that were well-known at the circumstances. time Castro came to power in 1959. In its decision to uphold the registration’s validity, the The bill would also require the Treasury Department to cre- TTAB rejected those allegations and noted with emphasis ate a new general license category to allow the transfer of that the Havana Club trademark was obtained in 1976 only U.S. trademarks and trade names to Cuban entities. after the prior U.S. registrations had lapsed, apparently In related news, Pernod Ricard has introduced fresh abandoned by the original owners in 1973. packaging, a new reference and an additional bottle size The TTAB also ruled that HCH had filed a proper renewal for Havana Club. The company says its new packaging application in 1996 and the USPTO had acted appropriately in — aimed at the European market — “retains the key accepting the renewal application and renewing the registration elements that characterize the brand and identify it as in HCH’s name. the only authentic Cuban rum to be distributed inter- Officials of the Bacardi rum empire, which claims prior owner- nationally, while conveying an image of modern ele- ship of the Havana Club mark, declined comment on the ruling. gance and status.” Pernod Ricard distills and markets Havana Club rum in a partner- The label has been redrawn to resemble a cigar ship with the Cuban government. Last year, HCH shipped 1.92 million label, highlighting the brand’s Cuban heritage. Other nine-liter cases of Havana Club rum. That’s up from 1.73 million cases changes include color-coded caps to differentiate refer- in 2002, when the brand ranked No. 53 in Impact Databank’s list of the ences, an updated neck label and a more stylish bottle shape. The world’s top 100 premium distilled spirits. Añejo Reserva and Añejo 7 Year Old bottles remain the same as before. Demand is particularly high in Italy, Spain and elsewhere in Western Havana Club is also phasing out its Silver Dry reference and intro- Europe, though because of the U.S. embargo against Cuba, not a drop ducing a new family member: Añejo Blanco, ideal for customers who of Havana Club rum may be sold in the United States (see CubaNews, prefer a light rum with many different aromas and suave tastes (see December 2003, Page 1). new bottle design, above). HCH’s annual revenues exceed $170 million, with profits of around “We had an excellent response when we tested the new packaging in $40 million, according to a recent article in Forbes, with $20 million of key European domestic markets, and we are sure that we will have sim- that — or about 3% of Pernod Ricard’s overall 2002 profits of 750 mil- ilar success in the travel retail channel,” said James Clarke, marketing lion euros — going to the French liquor giant. director of Pernod Ricard World Trade. According to the magazine, “Fidel hasn’t made out badly, either, Details: Mark Orr, Pernod Ricard USA, Washington. Tel: (202) 833- drawing an estimated $23 million a year in hard currency from the ven- 2150. Fax: (202) 833-1733. E-mail: [email protected].

STRICTLY BY THE NUMBERS BUSINESS GUIDE TO CUBA 11,177,243 — Cuba’s official population as of September 2002 The Business Guide to Cuba is the most 11.87 — number of births per 1,000 inhabitants, according to the same census comprehensive research report on Cuban business and politics available today. 424,799 — number of Cuban students who received free accommodations in 2003 With more than 300 pages of exclusive 26 — number of Cuban pesos one U.S. dollar will buy on the streets of Havana information, data, charts and maps on all productive sectors of the economy — as 2,383 — number of topados, where food sells at 25-30% below market prices well as a list of official contacts, business 235 — Cuba’s monthly per-capita income, in pesos, as of December 2003 practices and even Cuban street slang — the Business Guide to Cuba is your No. 1 3,193 — average daily calorie intake in Cuba, as of December 2003 resource on potential investment opportu- 1.9 million — number of tourists who visited Cuba in 2003 nities and pitfalls in this emerging market. 6.3 — number of phone lines per 100 inhabitants, according to state monopoly Etecsa Copies of the guide are available for only $99 each, shipping and handling included. 480,000 — number of e-mail accounts handled by the Ministry of Communications To order your copy, call us toll-free today 51 — number of pages in the Yellow Pages section of the 2004 Havana phone directory at (800) 365-1997, fax us at (301) 365-1829 or send an e-mail to [email protected]. 5 — number of people named Fidel Castro listed in that same directory Visa, MasterCard and Amex accepted. February 2004 ❖ CubaNews 11 POLITICS INTERNATIONAL BRIEFS GUATEMALAN LEADER SEEKS BETTER CUBA TIES Correspondents wait for Fidel’s finale Guatemala’s new president, Oscar Berger, BY ALINA TUGEND says Anita Snow, who has been the AP’s has vowed to boost his country’s diplomatic Cuban correspondent since 1998. “It’s the and trade relations with Cuba. very six months or so, Vanessa Bauza, Eduardo Stein, the Guatemalan vice-presi- one of the few American correspon- first time he showed physical vulnerability. Reporters saw Cubans stumbling out of their dent, and Jorge Briz, the new foreign minister, Edents in Havana, gets a call from her edi- expressed their views at a meeting in the houses sobbing. And they could almost hear tors. A rumor is again sweeping through the Guatemalan capital with Fernando Remírez de Miami community of Cuban expatriates: Fidel the cheers from Miami.” Cubans like to talk and like to complain. Estenóz, Cuba’s first deputy foreign minister. Castro is dead. Bauza, a reporter for South About no meat at the bodega. About housing Both men told Remírez that the contribution Florida Sun-Sentinel and the Tribune chain, problems. About long lines for the bus. About of the Cuban medical brigade was “extremely checks it out. It’s not true — again. the American bloqueo. important in improving public health through- For the four American media organizations But when it comes to politics, they often go out diverse regions of Guatemala,” according with permanent offices in Cuba — The Asso- quiet. This is especially true when it comes to to Prensa Latina. ciated Press, CNN, The Dallas Morning News imagining a future without the 77-year-old Stein and Briz also championed the idea of and Tribune Company — the main job often Castro, who has led the country since 1959. increasing Cuban assistance in training young seems to be keeping their fingers as close to In fact, they don’t like to say “death” and people to become doctors. The first group of Castro’s pulse as possible. “There is a sense “Castro” in the same sentence. “They say, Guatemalan students are due to graduate this of a deathwatch,” Bauza says. “It’s very much ‘when Fidel ceases to exist physically,’” says year from the Latin American School of Medi- something I’m aware of.” Tracey Eaton, correspondent for The Dallas cal Studies in Havana and other institutions. But even as she says that, she follows Morning News. “Or, the ‘biological solution.’” Last month, CubaNews reported that Tikal immediately with a disclaimer, as do other Reporters on the Cuba beat say editors and Jets had begun nonstop service between Gua- American reporters on the island. Cuba is a producers don’t seem as hungry for their sto- temala City and Havana using DC-9 aircraft. country of great stories. “We’re not all sitting ries as they did a few years ago, when the first around twiddling our thumbs waiting for the American reporters returned after 28 years CYPRIOT LAWMAKERS VISIT CUBA big man to go to the sky,” Bauza says. out in the cold. But every newspaper has a A delegation of lawmakers from Cyprus vis- Still, CNN’s Lucia Newman says she once plan in place to deal with the ultimate big ited Cuba in January, only four months before had to jump in her car and drive 12 hours from story — Castro’s death and the aftermath. the divided Mediterranean island of 800,000 one end of the country to the other to check They all decline to reveal any details, inhabitants is scheduled to gain admission out Castro’s health once again, as she often except for Bauza, who half-jokingly outlines into the European Union. has over the last five years. Castro was fine. her plan: “I pick up the phone,” she laughs, The delegation, headed by Demetris Christ- All the reporters remember June of 2001, “and say, ‘Send help.’” ofias, speaker of the Cypriot Congress, con- when Fidel apparently fainted and was helped This story was reprinted with permission from sisted of leaders of the country’s main political from the stage two hours into a speech. Columbia Journalism Review, July/August parties including Yiannakis Omerou of the So- “People were sad and shocked and scared,” 2002. © 2002 by Columbia Journalism Review. cial Democrat Movement (EDEK); Dinos Mi- chaelides of the Fighting Democratic Move- ment (ADIK); Nicos Cleanthous, a Democrat- ic Party (DIKO) lawmaker, and Demetrio Democrats take on the Cuba question Syllouris of the Democratic Rally (DISY). n Jan. 30, the Associated Press asked In general, embargoes have not succeeded Granma reported that “talks were held in a all seven Democratic presidential can- in bringing democracy. It was engagement cordial and friendly atmosphere, where they Odidates this question: What conditions, and penetration that helped the peoples of discussed bilateral relations and other issues if any, would Cuba have to meet for you to Eastern Europe gain their freedom. If elected, related to the current international situation.” favor dropping the embargo? I would work this problem with the leaders of Here are responses from the six candidates the region. As president, I would look at the GABON SIGNS COLLABORATION PACT WITH CUBA that remain in the race: circumstances at the time and then act.” Cuba and the African nation of Gabon have Sen. John Kerry: “I am not prepared to Sen. John Edwards: “The goal of our pol- signed a bilateral collaboration agreement cov- lay down conditions at this time for lifting the icy in Cuba must be the promotion of democ- ering health care, education, sports, tourism embargo, because I believe that we need a racy and human rights. I support sanctions and culture. major review of U.S. policy toward Cuba. That that target Fidel Castro’s regime but help the The Jan. 23 accord was signed by Ernesto review must be conducted with other coun- innocent Cuban people, allowing trade for Senti, Cuba’s acting minister for foreign in- tries in the region, with Cuban-Americans, food and medical supplies that help ease the vestment and economic cooperation, and Gab- and, to the best of our abilities, those in Cuba horrible burdens they suffer. onese counterpart Jean François Ndongo. who are fighting for greater political liberties.” Full sanctions should not be lifted until Gabon is a major oil exporter which has Gov. Howard Dean: “The U.S. should Castro and his brutal regime are gone. At the consistently supported Cuba in international move toward the eventual lifting of the trade same time, along with our allies, we must organizations. embargo with Cuba. But Castro must not be increase our support and assistance for dissi- rewarded for continued human rights viola- dents and democracy advocates inside Cuba ICELAND AMBASSADOR PRESENTS CREDENTIALS tions. Before I will consider lifting the embar- who are struggling to be free.” Hjalmar W. Hannesson, Iceland’s new am- go, Castro must demonstrate a firmer com- Rep. Dennis Kucinich: “I strongly favor bassador in Havana, presented his credentials mitment to human rights and take steps that ending the embargo on Cuba. Our policy Jan. 15 to Cuban Vice President Juan Almeida promote the freedom that Cubans have so toward Cuba has created misery for the and Deputy Foreign Minister Angel Dalmau. long been denied.” Cuban people and has harmed our own After the ceremony, Hannesson placed a Gen. Wesley Clark: “I want to help bring national interests. My administration will wreath at the monument to José Martí. democracy to the Cuban people, the only peo- work to normalize relations with Cuba. This Diplomatic relations between Iceland and ple in the Western Hemisphere who don’t will include normal bilateral trade with Cuba.” Cuba were established in 1956 and elevated to have democratic freedoms. That said, I will Rev. Al Sharpton: “If we can trade with embassy level in 1973, though trade between not take steps that reward Fidel Castro. China and Russia, what is the difference?” the two island nations is negligible. 12 CubaNews ❖ February 2004 U.S. MISSION REVISES CUBAN VISA PROCEDURES state to export $30 million worth of goods to BUSINESS BRIEFS Beginning Feb. 2, the U.S. Interests Section Cuba in 2004, despite the difficulties of doing business with the Castro government. OIL PRODUCTION UP; REPSOL PLANS TEST WELL in Havana will implement a telephone appoint- ment system for nonimmigrant visas. Appoint- “One of my clients secured the first dairy Cuba’s oil production will increase in 2004 ments granted through this system will be the export contract to Cuba, which amounted to for the 10th year in a row, says Fidel Rivero only appointments honored after Feb. 9. $6 million,” Thomas told CubaNews, though Prieto, director of the state entity Cupet. Cuban applicants who are approved for a she declined to name the company. “Assum- He told the business weekly Opciones that nonimmigrant visa should be prepared to wait ing the shipment goes well, we’re expecting to oil extraction reached 4.3 million tons last a minimum of a few months after the initial sign a fairly significant contract with Alimport year, up 3.7% from 2002. Cupet, which runs interview for the visa to be issued. for non-fat powdered milk that be worth up to Cuba’s oil sector, expects an 8% rise in pro- As a result, applicants are advised to sched- $20 million.” duction over the next 12 months. For 10 years ule interview appointments well in advance of Thomas said rice is another potentially in a row, Cuba’s oil production has increased. anticipated travel since the Interests Section is lucrative Texas export to Cuba, as well as lum- According to Rivero, the main destination unable to expedite any visa requests. ber, beef and other dairy products. for Cuba’s oil and gas is power generation, fol- Details: U.S. Interests Section, Havana. Tel: Details: Cynthia Thomas, President, Texas- lowed by cement and nickel production. He +53 7 833-1196 or 833-1198. URL: Cuba Trade Alliance, PO Box 515322, Dallas, said thermoelectric plants are being remod- http://usembassy.state.gov/havana. TX 75251. Tel: (972) 527-7505. Fax: (972) eled to better assimilate Cuba’s heavier oil. 527-9449. E-mail: [email protected]. Madrid-based Repsol, meanwhile, has con- TEXAS COMPANIES TAKING CUBA SERIOUSLY tracted a Norwegian deep-water drilling rig Texas firms are stepping up their volume of BIOCEN PRODUCES HEPATITIS VACCINE and a Canadian logistics company as it pre- Cuba’s National Biopreparations Center pares to sink the first test well in Cuba’s Gulf food sales to Cuba’s Alimport, says a Jan. 10 report in the San Antonio Express-News. (Biocen) produced a record 17 million doses of Mexico waters sometime this spring. of anti-hepatitis B vaccine for the domestic The Port of Mariel will be the center of ope- “After hanging back, Lone Star State compa- nies have taken the plunge, with Dallas-based and export market, reports Granma. rations, and is hopping these days as prepara- Biocen’s director, Carlos Lastra, told the tions move into high gear. The odds that Dean Foods signing a $162,000 contract for newspaper that in 2003, Biocen consolidated Repsol will hit oil are better than one would coffee creamer in November. Corpus Christi’s its position as a key manufacturer of Cuban think, according to sources close to the opera- dry-food packaging firm WestStar Food biotech products, having taken on all the tion. The big question is quality, as it will cost signed a $1.5 million pinto bean contract with more than $1 billion to get the oil on line by Alimport as well,” the newspaper reported. preparation phases of recombinant streptoki- 2008, and $100 million per year after that. “Two private Texas firms that declined to be nase; as well as the combination vaccine named have contracts to deliver nonfat pow- against diphtheria, whooping cough, tetanus UNESCO PLANS CULTURAL HERITAGE DATABASE dered milk and cotton,” it added. and hepatitis B; the colony stimulation factor, Cynthia Thomas, president of the Texas- and certain kinds of Interferon. UNESCO wants to increase the responsibili- Cuba Trade Alliance, said she expects her Biocen also produced 20 tons of cultural ties of its regional cultural office in Havana, reports the Spanish news agency EFE. Among other things, the international agen- cy hopes to establish a database of cultural Cigar prices recover in Europe; ‘mini’ production up heritage, said Mounier Bouchenaki, subdirec- he Cuban-Spanish joint venture Inter- neurial group Tabacuba said international tor-general of UNESCO’s cultural department. nacional Cubana de Tabacos Ltda. demand for Havana cigars, seriously dam- Bouchenaki, concluding a 5-day visit to the T (ICT) produced over 46 million mini- aged in 2002 due to economic difficulties, island, noted that the agency has declared cigars worth $8 million in 2003. That’s up started to recover gradually in June 2003. 2004 “the international year of commemora- from 36 million minis in 2001, said Miguel Tabacuba President Oscar Basulto said tion of the struggle against slavery, xenopho- Angel Casas, president of ICT. that since mid-2003, sales have recovered. bia and racism.” The small cigar brands include Cohiba, October saw a 20% jump in all 122 countries Montecristo, Romeo y Julieta, Partagás, where Cuban cigars are distributed. INFANT MORTALITY LOWEST IN LATIN AMERICA Quintero, H. Upmann, San Luis Rey and La During the slowdown, Tabacuba sought Cuba reported an infant mortality rate of 6.3 Gloria Cubana, which sell Minis (under alternatives, including the commercializa- deaths per 1,000 live births in 2003, the lowest 0.8g), Club (1.2g) and Purito (2.8-3g). tion of specialties and personalized cigars, in Latin America, according to official figures. The minis are produced by 240 employ- which guaranteed sales for $20 million, due The rate, lower than those reported in 2003 ees at a modern, 9,500-sq-meter factory on to their exclusiveness and higher prices. by Chile (10), Uruguay (14), Brazil (30) or Avenida Independencia, about a mile from Basulto said that in order to guarantee the Argentina (16), is only higher than Canada’s, Havana’s José Martí International Airport. current tobacco harvest, Cuban authorities with 5 deaths per 1,000 live births, while the About 80% of ICT’s production is export- spent $35 million to buy inputs. He added United States reported 7, says UNICEF. ed, with 65% of exports going to EU member that another $45 million was invested in The figures, provided by the Ministry of states and Switzerland, and the other 35% to reconstructing the tobacco houses and Public Health, show a small difference among Canada, Latin America and the Far East. seedbeds damaged by two hurricanes that provinces, which is according to the press, “a Cigar prices, meanwhile, have risen an hit western Cuba in late 2002. palpable evidence of the social equity that pre- average 7% in France during January, ac- Authorities expect to produce 36,000 tons vails in the country.” cording to EFE. The company Coprova, of tobacco leaves during the ongoing har- Provinces whose infant mortality rate was which imports all high-quality cigars from vest, for both export and the domestic mar- lower than the national average include Las Cuba, said 100 of a total 254 labels had not ket, while boosting yields. Tunas (4.2); Havana and Matanzas (5.0 each), changed in price, while 60 more had risen Cigars are now among Cuba’s major Granma (5.1), Ciego de Avila (5.3), Sancti Spí- 2% or less. Another 76 varieties rose 3-8% in export items, generating over $240 million a ritus (5.5), Villa Clara (5.9) and Pinar del Río price, and the other 18 went up 11% to 16%. year in foreign exchange. (6.0). Guantánamo, Cuba’s easternmost Each year, about 8 million handmade Details: Miguel Angel Casas, President, province, reported an infant mortality rate of Cuban cigars are sold in France. The most ICT S.A., Avenida Independencia #34501 8.0, the island’s highest. popular is Montecristo No. 4, whose price e/345 y 1ro. de Mayo, Boyeros, La Habana. During the first year of life, Cuban children rose by 8.5% from 6.45 to 7.00 euros. Tel: +53 7 880-1566; 57-9038. Fax: +53 7 receive an average of 25 medical visits and are A top executive from the local entrepre- 57-9006. E-mail: [email protected]. gradually immunized against 13 diseases. February 2004 ❖ CubaNews 13 mediums and met national demand for Trofin, Meanwhile, Trinidad could be getting a five- native to transplants, in order to slash the risk a natural anti-anemia reconstituent that has star hotel, unrelated to Grand Slam. of rejection by the recipient’s body. demonstrated its effectiveness for children, Gilder Yánes, a local tourism official, told The doctors said Cuba’s health system is pregnant women and older adults with iron Prensa Latina that the 40-room hotel — a ven- against human cloning for ethical reasons. deficiency, for the third year in a row. ture between the Cuban government and They favor disease prevention, transplants Lastra also confirmed that in 2003, Biocen Spain’s Iberostar — would be surrounded by and organ regenerating procedures as ways of won various manufacturing licenses, including other downtown historic buildings. No further prolonging life. one for an anti-hemophilus influenza vaccine, information is available about the project. Among the pharmaceuticals developed to the first batch of which is already available for Details: Sebastiaan Berger, Zapa Internatio- strengthen body response to the aging Cuban children. This vaccine was produced nal Management, Edif. Barcelona #401, Mira- process are Vimang, based on the bark of the by specialists at the University of Havana’s mar Trade Center, 5ta Avenida e/76 y 78, La mango tree, and PV-2, a natural preparation Synthetic Antigens Center and is considered Habana. Tel: +53 7 204-7934. Fax: +53 7 204- based on morinda royoc and manufactured one of the most important Cuban scientific 7935. E-mail: [email protected]. through homeopathic procedures. achievements of 2003. Biocen has also begun exporting to six new LABIOFAM PROMOTES RAT POISON OVERSEAS HELMS-BURTON WAIVER EXTENDED — AGAIN markets: Bolivia, Chile, Colombia, Paraguay, Cuba’s rodenticide Biorat is now being sold President Bush on Jan. 16 extended for Germany and Venezuela. in Latin America, China, Vietnam and Angola, another six months a measure barring law- according to state agency Labiofam S.A. suits by Americans whose property in Cuba NEW MINREX WEBSITE ENCOURAGES ‘DEBATE’ Deisy Lorenzo, a company representative in was confiscated by the Castro regime. Cuba’s Ministry of Foreign Affairs has inau- the central province of Matanzas, told Prensa Bush announced the move in a letter to key gurated an online discussion forum “where Latina that Biorat, which is harmless to other lawmakers, saying his action “is necessary to we discuss everything pertaining to political, animals and has an excellent track record, is the national interests of the United States and economic and socio-cultural issues.” doing as well or even better than similar prod- will expedite a transition to democracy in On Friday, Feb. 13, the website will host a ucts sold by other firms. Cuba.” He last extended the prohibition in debate on the subject of “intellectuals and the Biorat is the leading product made by Labio- July 2003. marketplace of ideas.” fam and has earned important awards at com- Under the 1996 Helms-Burton Act, U.S. citi- Details: Cuban Ministry of Foreign Affairs. mercial and trade fairs. It is in high demand in zens may sue any individual, investor or busi- Havana. URL: www.forumcubaminrex.co.cu. countries such as Mexico, Peru, Ecuador, the ness using property seized after Jan. 1, 1959, Dominican Republic and Guatemala. though it also gives presidents the power to BOUTIQUE INNS OPEN IN TRINIDAD, CIENFUEGOS Labiofam experts claim that Biorat controls block all such lawsuits for six-month periods. rodent plagues within 5-10 days and is biode- On Jan. 6, Grand Slam Ltd., a hotel venture MISSISSIPPI PORTS SEEK MORE CUBA TRADE established by British growth fund Ceiba gradable, inexpensive and innocuous for Finance Ltd., signed an agreement with state- humans, animals and plants. Mississippi port officials say they got what run Rumbos S.A. to open a chain of boutique Details: Labiofam S.A., Calle 19, #1166 e/16 they expected out of a recent fact-finding trip properties aimed at “the discerning traveler.” y 18, Vedado, La Habana 10400. Tel: +53 7 to Cuba. Initial investments are scheduled to be 204-2169 or 204-2170. Fax: +53 7 204-2181. Don Allee, director of the Mississippi State made during the first semester of 2004. E-mail: [email protected]. Port at Gulfport, came back with a guarantee Properties within the chain already operat- that Cuba will use Gulfport as much this year ing include the four-bedroom Hostal Mesón FINLAY INSTITUTE EXPLORES LONGEVITY ISSUES as last. Pascagoula received “every indication” del Regidor in Trinidad, and the seven-bed- Dr. Concepcion Campa, director of Havana’s it’ll continue to play a large role in such trade. room Hostal Palacio Azul in Cienfuegos. Carlos J. Finlay Institute, which produces 100 Allee and Rafael Quesada, trade develop- In December, CubaNews reported that million doses of diverse vaccines annually, ment manager for Pascagoula’s port, were Ceiba Finance plans to convert six mansions thinks men and women should be able to live among 250 people at a December event host- into small boutique hotels of six to 15 rooms to 120 years or more. ed by Alimport. The agreement is encourag- apiece. Besides Trinidad and Cienfuegos, the According to Dr. Omelio Borroto, deputy ing Mississippi officials to identify opportuni- properties will be located in Pinar del Río, minister of public health and Dr. Noel Gonza- ties where the state’s ports could be used for Matanzas and Havana. lez, head of the heart transplant team at Hav- commodities not now being transported. Total investment in the first phase should ana’s Hermanos Ameijeiras Hospital, Cuban Port of Pascagoula Director Mark McAndrews said the feedback from Quesada, come to $2 million, with rooms going for scientists are working with mother cells to who works out of Miami, was “generally posi- between $80 and $100 a night. regenerate organs in animals as a better alter- tive” about the visit. Details: Michael Olivier, Director, Mississippi Coast Trade Council, PO Box 1870, Gulfport, MAPEASY SELLS COLORFUL, USEFUL TOURIST MAP OF CUBA MS 39502. Tel: (228) 863-3807. Fax: (228) MapEasy Inc. has introduced a waterproof and tear-resistant map of 863-4555. E-mail: [email protected]. Cuba that should accompany anyone planning a trip to the island. On one side of the fold-out, $6.95 map is a detailed street-by-street SANTERIA PRIESTS: 2004 TO BE DRAMATIC YEAR guide of Old Havana, pinpointing the location of all important cultural, This year will be filled with aviation and political and tourist attractions as well as hotels and restaurants. On shipping disasters, climate upheaval and the other side is a road map of Cuba, containing dozens of interesting worldwide political strife, say Cuba’s Yoruba descriptions of key Cuban cities from Pinar del Río in the west to high priests — warning that sacrifices would Baracoa in the east — and with special emphasis on the beaches and be needed to ward off evil omens. resorts of Varadero. Reuters reported Jan. 7 that the Afro-Cuban “Today, Cuba is like a caterpillar about to become a butterfly. To priests, known as babalawos, say foreign travel there now is to visit a place unchanged since the ‘50s,” says a investment will be on the rise, and that 2004 blurb accompanying the full-color map. “A trip to Cuba now is a unique will see the death or downfall of key religious opportunity to say ‘I remember when.’” and political leaders, without naming names. The Cuba map can be ordered directly from MapEasy’s website. The priests recommended sacrifices of Details: MapEasy Inc., PO Box 80, Wainscott, NY 11975-0080. Tel: pregnant goats and white chickens, and offer- (631) 537-6213. Fax: (631) 537-4541. URL: www.mapeasy.com. ings of milk and meringue to the reigning Santeria deity, Obatala. 14 CubaNews ❖ February 2004 AGRIBUSINESS A comprehensive look at Cuba’s farm machinery sector BY OUR HAVANA CORRESPONDENT GIMAG’s factories in Holguín make sugar combines. In 2002, the ince 1960, Cuba has focused on crop mechanization, but develop- entity reconverted 246 KTP-2 combines into the more modern KTP- ment remains hindered by the country’s lack of credit and fuel. 2M model. Another model, the KTP-3000, is now being introduced, S The primary focus of farm machinery is the production of com- although modestly, in the international market. Another prototype bines and cane-cutting machines, harrows, cultivators, veneers, plant- without the K was recently displayed during the Metanica Internatio- ing equipment, pesticide and herbicide sprayers, fertilizers, sprinklers nal Fair at Havana’s Pabexpo. The K family has also newcomers like and irrigation equipment. the KTP-2000, 3000 and 4000 in the trial period. In the 1980s, Cuba introduced a tractor capable of cultivating sugar The Holguín plant has succeeded in meeting the demand for large cane plants exceeding 2 meters in height. Evaluations on four different and small agricultural enterprises alike, through the conversion of types of subsolators were carried out for deep cultivation, and techni- YUN tractors and the integrated manufacturing of tractors on rubber cal parameters for a design of a new cultivator were determined. tires with 105-hp and 130-hp motors. Cuba began importing self-propelled harvesters and forage thrash- This plant is also working to design farm implements capable of ers from East Germany and used them in cattle breeding. In vegetable doing several operations at the same time. That would help cut soil crops, a new technology using wide-row cultivation from Hungary was preparation time, thereby reducing costs and fuel consumption — an introduced. For citrus fruit crops, Hungarian reapers RZ-3 and RZ-6 especially important factor in the sugar industry. were tried out together with new turbosprinklers for high plantations. Currently on the drawing board is a machine capable of planting Agriculture authorities also bought E-681 and E-682 harvesters from about 13.4 hectares a day with only 25 men, task that usually takes 400 East Germany for harvesting potatoes. They asked Cuban technicians men. Besides that, the new machine opens rows in the ground at a con- to design and manufacture a station prototype for benefiting produce. stant depth; it also fertilizes, fumigates and covers the seeds in only In rice plantations, 10 types of bars for implements were tried out in one pass. Other products being made at the plant include sprayers, po- order to use different harrows with T-150K tractors on heavy tires. tato planters, harrows, towing plows and mowers of various types. Hungarian NA-10 turbosprinklers were used in banana plantations. During the 1980s, the mechanization division of the Agriculture and Sugar Ministries began to use conventional measuring units like the Cuba develops solar energy techniques tractor and hectare pattern. Cuba’s electronic industry, which is showing signs of recovery, In 1981, high-power and traction equipment represented 10.8% of all has begun producing photovoltaic modules for foreign clients. machinery; by 1989, that had risen only to 12.7%. The supply of these The equipment, which brings electricity to rural areas, is manu- tractors simply couldn’t keep up with demand. During that period, the factured at the Electronic Components Complex in western Pinar number of tractors per 100 hectares rose from 1.9 units to 2.5 units. del Río province. The production of solar panels began in 2000 after The number of implements and combines attached to each tractor a boost to electrification of mountainous areas in Cuba, with the goal increased by 6.4% during the 1980s, from 114,017 units in 1981 to over of spreading the educational audiovisual program. 130,000 units in 1989. The number of sugarcane combines increased The panels, which can last up to 20 years, are in high demand — more than 30%, from 2,895 units to over 4,000. Daily yield per machine especially smaller, low-wattage panels. At present, around 31% of in the field was low. The cyclical nature of crops, among other factors, Cuba’s solar panels are exported. was to blame for a lack of high and stable workload during most years. In 2003, the factory produced 2,500 165-watt panels for Japan, No warranty contracts were established between sugar factories and Germany, Italy and Spain, and 2,300 panels for the domestic market. farms of the non-sugar sector that would cover manufacturing defects Meanwhile, Cuban experts are refining a method to purify water and lengthy breakdowns. using solar energy. The low-cost procedure, developed by Cuba’s In 1989, Cuba had 77,000 tractors, 2,000 bulldozers and 5,000 sugar- Centro de Tecnologías Apropiadas en Saneamiento (SANTEC), is cane, rice and fodder combines. Yet the short supply of trucks forced ideal for purifying water in rural schools, clinics and small towns. farmers to use their tractors for transportation chores. In 1987, each The equipment consists of two tanks to store water before and tractor averaged only 4.7 hours of work per day, including transport after treatment, a heat exchanger and a reactor with a transparent activities — a very inefficient use of the equipment. cover to allow sunshine to penetrate. Water is stored in the reactor Today, the government is involved in replacing the motors of YUMZ- 6M Ukrainian tractors with Belarussian motors and Ukrainian parts to for an hour until the temperature reaches 50º C. and chemical reac- keep these tractors in operation. Yet a significant number of these trac- tions take place to eliminate pathogenic bacteria and viruses. tors will be put out of circulation; in the last few years, the supply has been dropping by 4,000 to 5,000 tractors annually. During the first half of 2003, the Ministry of Agriculture said it had 46,700 tractors, around 200 combines and a relatively low number of farm implements. LARRY LUXNER Industrial production of farm machinery in Cuba was slashed in half during the 1990s, mainly because of organizational instability and the lack of supplies. At present, severe restrictions in obtaining external financing and the low use of domestic industrial capacity account for the slow recovery of this industry. Nine companies inside the steel and mechanical industry are cur- rently engaged in the production of farm machinery. GIMAG is an industrial group employing 11,000 workers. It was cre- ated by the merger of the Unión de Equipos Agrícolas and part of the Unión de Equipos para la Construcción. It encompasses more than 20 productive and service units, and focuses on the manufacture and sale of equipment, spare parts and farm implements. The Institute of Research on Agricultural Mechanization takes part in the decision-making process to create mechanical means for nation- Some 31% of solar panels manufactured by Cuba are now exported. al agricultural production. February 2004 ❖ CubaNews 15 COMMODITIES AGRIBUSINESS BRIEFS CITRUS CROP REACHES PRE-MICHELLE LEVELS Outlook brightens for 2004 sugar crop Production levels at Cuban citrus enterprise Victoria de Girón are expected to reach over BY ARMANDO H. PORTELA supported pushing the end of the harvest well 420,000 tons of fruit in the 2003-04 harvest. uba says its current sugar harvest is into the rainy season which starts in May, in a Roger Delgado, director of the state-run doing much better than the 2002-03 fierce hunt for extra income. At the same time company, told Prensa Latina that this year’s C zafra. Most of the mills started opera- the practice could be easily held accountable harvest will restore the historical levels tion on schedule, cane estimates are not inflat- for the drop in the overall efficiency. obtained up until two years ago when the sec- ed and the use of industrial capacities, while But probably not this time. tor was hard hit by Hurricane Michelle. low, is higher than last year. Raw world sugar prices for the January op- The powerful storm caused considerable The 16 mills that started in December (out tion averaged 4.67¢/lb last December com- damage to Cuban agriculture, leveling over of 23 scheduled) were running at 84% of capa- pared to more than 7¢/lb a year earlier. Prices 1,200 acres of citrus trees. city. Three weeks later, this had dropped to for the March contract weren’t very encour- Victoria de Girón, located in southwestern 72-75% — mainly a result of breakdowns — aging, either. In January averaged 5.83¢/lb up Matanzas province, has over 54,000 acres of yet that’s still a lot better than the 62% report- from 5.52¢/lb in December. land, of which 47,000 are planted with grape- ed at this same time last year. Analysts don’t foresee a price improvement fruit and orange trees. The entity accounts for 60% of Cuba’s total citrus harvest and is oper- WORLD RAW SUGAR PRICES Monthly average in dollars per ton ated through a joint venture between the January $325.0 Cuban government and Israel’s Grupo BM. In addition to local consumption, Cuban $300 fruit is exported to Great Britain, France, Hol- December $273.3 land, Germany, Sweden, Denmark and Japan. Details: Empresa Citricos Victoria de Girón, $250 October $237.0 Jagüey Grande 43100, Matanzas, Cuba. Tel: +53 45 99-6315. Fax: +53 7 53 45 25-3130. February E-mail: [email protected]. $200 $198.6 June December March $126.8 $138.4 CUBAN HONEY PRODUCTION SETS RECORDS $112.70 $150 Cuba produced over 7,000 tons of bee honey in 2003, the highest output in the past 12 years, according to National Apiculture Direc- $100 tor Israel Lozada. The official noted that yield 1995 1996 1997 1998 1999 2000 2001 2002 2003 per beehive had increased to 54 kilograms.

Source: The Pink Sheet, World Bank Cuba’s central provinces reported the best honey production results in the country, he Much to the authorities’ alarm, it is report- anytime soon. The London-based commodi- said, adding that he expected that in two years ed that at least 14 mills— nearly a quarter of ties broker ED&F Man Sugar Ltd. believes a Cuba would be in a position to break its own Cuba’s 57 active mills — are having problems 3.5 million-ton world oversupply would keep honey production record of 10,000 tons, set in keeping the pace, even at such an early stage prices soft through 2004. 1983. Some 90% of the bee honey produced in of the grinding season. Six of those bad per- “The Western Hemisphere remains over- Cuba is exported to the European market. formers are located in the eastern provinces supplied during 2004, despite lower European Central Villa Clara province produced 709 of Granma and Santiago de Cuba. A sustained production, with the only hope for a change to tons of bee honey in 2003, with yields reach- 80% industrial pace is required to succeed but come from a sudden period of poor Brazil ing 60.2 kg per beehive — nearly topping the the industry tends to show fatigue after weather conditions,” ED&F Man said Jan. 27. 62.9 kg per beehive record set back in 1983. February or March. Though most Cuban sugar goes to Russia at These results follow an increase in the num- Authorities expect a 19% increase in output pre-arranged conditions favorable for the ber of beehives, the qualification of breeders, to around 2.6 million tons this harvest, com- island, the amount shipped there has steadily the use of queen bees with excellent genetic pared to the 2.2 million tons of sugarcane pro- dropped in recent years, while Brazil has dis- conditions, and timely castration of beehives. duced in 2003. That harvest followed a radical placed Havana as Moscow’s main provider. downsizing of the industry that shuttered 70 The customary shipment of 400,000 tons of of 156 mills and was plagued by organization- sugar to China every year could be threatened MAGAZINE KILLS CIGAR STORY al and resource problems. once China joins the World Trade Organiza- California magazine CigarWise pulled its Sugar Minister Ulises Rosales del Toro, tion. The decline of such markets leaves Cuba cover story out of security concerns for the opening the harvest on Dec. 10, said plans even more exposed to world market volatility. author, Ron Wagner, and following threat- call for mills to operate at 80% capacity, with Considering an average price of 6¢/lb, ening letters and phone calls. yields averaging 12% — goals the experts say which is above the prevailing price, and The exposé, titled “The Internet vs. the are a bit farfetched. assuming an output of 2.6 million tons, the Cuban Embargo,” apparently upset readers Eighty mills are scheduled to open by early value of this year’s harvest would be just $250 who engage in Internet purchasing of February, with output reaching 20,000 to million, after subtracting 700,000 tons for Cuban cigars through a third country. 30,000 tons of raw sugar per day. domestic consumption. Says publisher Vaagn Arakelyan: “The This year, authorities repeated a pledge to Vice President Carlos Lage said that mills story is based on a solid foundation of facts, pursue efficiency rather than quantity as the must keep production costs between 3.5¢ and and not opinion or fantasy. We stand by Mr. top goal of the zafra. This time, however, 4.5¢/lb (compared with 5¢/lb in 2002-03) or Wagner’s research and his journalistic world market prices could help the govern- they’ll be shut down. integrity for standing by his work.” ment fulfill its ambitions. Even if Lage’s ultimatum is followed, the Details: CigarWise Magazine, Jacobsen Soft market prices could force to end the industry will yield profits of only $60-100 mil- Bldg., 246-B N. Indian Hill Blvd., Clare- harvest earlier, at least for the worse-per- lion this year — not a pleasant prospect for mont, CA 91711. Tel: (909) 624-8343. Fax: forming mills. In recent years, healthy prices Cuba’s remaining 280,000 sugar workers. (909) 624-0790. URL: www.cigarwise.com. 16 CubaNews ❖ February 2004 CALENDAR OF EVENTS CARIBBEAN UPDATE If your organization is sponsoring an upcoming event, please let our readers know! You already know what’s going in Cuba, Fax details to CubaNews at (301) 365-1829 or send an e-mail to [email protected]. thanks to CubaNews. Now find out what’s happening in the rest of this diverse and fast-growing region. Feb. 11: “Havana the Beautiful: Past, Present & Future” Presentation by photographer Subscribe to Caribbean UPDATE, a Kenneth Treister. Cost: $10. Details: Institute for Cuban and Cuban-American Studies, monthly newsletter founded in 1985. Cor- porate and government executives, as well 1531 Brescia Ave., Miami, FL 33134. Tel: (305) 284-2822. E-mail: [email protected]. as scholars and journalists, depend on this publication for its insightful, timely cover- Feb. 20: Free screening of the 80-minute award-winning movie “Suite Habana,” written age of the 30-plus nations and territories of and directed by Fernando Pérez. No charge, but reservations are required. Details: Bild- the Caribbean and Central America. When you receive your first issue, you ner Center for Western Hemisphere Studies, City University of New York, 365 Fifth Avenue, have two options: (a) pay the accompany- ing invoice and your subscription will be #5209, New York, NY 10016. Tel: (212) 817-2096. E-mail: [email protected]. processed; (b) if you’re not satisfied, just write “cancel” on the invoice and return it. Mar. 11-15: X Feria Internacional de la Información, Automatización y Comunicaciones There is no further obligation on your part. Informatica 2004, Pabexpo, Havana. Details: Melchor Gil Morell, Palacio de Convenciones, The cost of a subscription to Caribbean UPDATE is $267 per year. A special rate of Havana. Tel: +53 7 57-4075. Fax: +53 7 57-4582. E-mail: [email protected]. $134 is available to academics, non-profit organizations and additional subscriptions Mar. 18-20: Literary Feasts 2004, Fort Lauderdale, Fla. Ann Louise Bardach to promote mailed to the same address. To order, contact Caribbean UPDATE at the revised edition of her book “Cuba Confidential: Love and Vengeance in Miami and 116 Myrtle Ave., Millburn, NJ 07041, call us Havana.” Details: Broward Public Library Foundation, 100 S. Andrews Ave., Fort Lauder- at (973) 376-2314, visit our new website at www.caribbeanupdate.org or send an dale, FL 33301. Tel: (954) 357-7381. URL: www.broward.org/library/literaryfeast/htm. e-mail to [email protected]. We accept Visa, MasterCard and American Express. Apr. 6-10: VII Feria Internacional de la Construcción/FECONS 2004. Details: Ricardo Pérez, Palco, Havana. Tel: +53 7 881-8385. E-mail: [email protected].

Apr. 27-30: 6th Annual Conference on Sustainable Tourism Development. Sponsored by Caribbean Tourism Organization and Association of Caribbean States. Details: Ricardo Pérez, Palco, Havana. Tel: +53 7 881-8385. E-mail: [email protected].

May 4-8: Expoagua 2004, Pabexpo, Havana. Details: Minerva Ugalde Teyra, Palacio de Editor & Publisher LARRY LUXNER Convenciones, Havana. Tel/Fax: +53 7 879-6786. E-mail: [email protected]. Washington correspondent ANA RADELAT Jun. 6-9: International Rum Festival 2004, Havana. Event, to coincide with 485th anni- Political analyst versary of Havana’s founding, will feature nine rum brands: Havana Club, Legendario, DOMINGO AMUCHASTEGUI Feature writers Arecha, Santiago de Cuba, Mulata, Cubay, Bucanero, Varadero and Caney. Details: Belkys VITO ECHEVARRÍA DOUGLASS G. NORVELL Acosta, Dirección de Exportaciones y Ventas al Mercado Interior, Ministerio de la Industria Cartographer Alimenticia, Ave. 41, #4455, Havana. Tel: +53 7 203-3518 x52. E-mail: [email protected]. ARMANDO H. PORTELA Graphic designer JESSICA MUDJITABA

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