2003_02/CubaNews 2/4/03 10:02 AM Page 1

Vol. 11, No. 2 February 2003

www.cubanews.com

In the News Congress likely to OK some provisions

Famous dissident while rejecting major Cuba policy shift Oswaldo Payá has become Cuba’s best- BY ANA RADELAT The provision — buried in the section of the omnibus bill that would finance Treasury — known political activist ...... Page 3 s Congress struggles to finish work on a massive $390 billion omnibus spending says no funds may be paid to OFAC personnel A package, lawmakers in Washington seem for salaries or anything else unless it agreed, Nickel financing likely to jettison some legislation that would within 120 days of final passage of the bill, to Cubaniquel chief seeks money to boost ease the U.S. trade embargo while passing other adopt the following rules: ■ All license applications to OFAC must be con- island’s nickel exports ...... Page 4 Cuba-related provisions. At press time, the House of Representatives sidered approved if not resolved within 90 days was locked in a partisan battle over the mam- of receipt. Hard-currency beer moth bill — forcing the Senate to take the ■ All denials of license applications will be made Canada’s Labatt builds a $100m brewery unusual step of crafting the legislation that in writing. ■ Whenever OFAC denies a license for travel- just outside Havana ...... Page 7 would finance all government operations in 2003 except the Pentagon. related transactions, the agency must include in Among the hundreds of provisions in the Sen- its notification the statutory or regulatory basis Newsmakers ate bill is one seeking to reform the way the U.S. for the denial. ■ University of Miami’s Jaime Suchlicki has Treasury Department’s Office of Foreign The agency must also reveal whether that Assets Control (OFAC) issues travel licenses to denial is based on national security reasons and made a career out of predicting Cuba’s Cuba and other nations currently sanctioned by why, and must include the name, phone number future after Fidel Castro ...... Page 8 the United States. Such licenses are required for and e-mail address of an OFAC official author- American visitors who want to spend money on ized to discuss the denial with the applicant. Casa Bacardi travel to those countries. See Congress, page 2 Miami museum keeps flame burning for Cuban exile community ...... Page 9 Big hotels, cruise ships grab headlines American appeal as Cuba’s tourist trade slowly recovers Despite the expense, Cuban shoppers ap- preciate U.S. food imports ...... Page 10 BY LARRY LUXNER government from vacationing in Cuba. ast month, two watershed events gave new The day Washington lifts its travel ban, Cuba’s Fruits and veggies hope to Cuba’s tourism industry, which tourism industry could be flooded with a million or more curious Americans in the first year End of U.S. embargo could trigger Cuban L had been suffering since Sept. 11, 2001. On New Year’s Day, the M/V Sunbird sailed alone. But for now, Cuban hotels and cruise-ship produce export boom ...... Page 11 into Havana Bay with a record 1,414 passengers facilities are almost completely dependent on — the largest single load of cruise-ship passen- budget travelers from Europe and Canada. Business briefs gers ever to visit the island. The Sunbird’s arri- “Put things in perspective,” a Miami-based val came just a few weeks after the visit of anoth- cruise executive advised CubaNews. “At present, Cuban oil, gas output to rise 17% in 2003; er giant cruise ship, the A’Rosa Blu, carrying Cuba’s role in the cruise-ship industry is compa- Sherritt revamps power unit ...... Page 12 over 900 passengers. rable to its role in the hotel business. It’s getting And on Jan. 21, Fidel Castro — flanked by top only bargain-seeking European tourists.” Provinces: Guantánamo tourism officials and TV cameras — inaugurated Last year, 1,683,716 visitors flocked to Cuba, the 944-room Hotel Playa Pesquero, now Cuba’s according to figures quoted in a Castro speech. Cuba’s poorest province is also home to biggest hotel. The $100 million, five-building That’s a slight drop from the 1,774,541 tourists sprawling U.S. naval base ...... Page 14 beachfront complex, located in the eastern who came in 2001, generating $1.8 billion in for- province of Holguín, is already filling up with vis- eign exchange for the troubled Cuban economy. CubaNews (ISSN 1073-7715) is published monthly itors from Canada, Germany, Great Britain, Tourism officials, while releasing no income by Luxner News Inc. © 2003. All rights reserved. France, Italy and Switzerland. figures for 2002, said 1,500 new hotel rooms Subscriptions: $429/year. For subscription or edito- “Our friends from the north are not in this were constructed last year, bringing the total up rial inquiries, call toll-free (800) 365-1997, send a fax to 40,000; another 2,000 will be added in 2003. to (301) 365-1829 or e-mail us at [email protected]. list,” joked Castro, referring to Americans who, since 1963, have been prohibited by their own See Tourism, page 6 2003_02/CubaNews 2/4/03 10:02 AM Page 2

2 CubaNews ❖ February 2003 explanation,” Dorgan’s press secretary, Barry ment of involvement in drug trafficking, but Congress — FROM PAGE 1 Piatt, told CubaNews. Complaints about have never offered proof of such activities. Robert Muse, a Washington attorney who OFAC’s handling of Cuba licenses have risen Nevertheless, the money for joint interdic- specializes in Cuba matters, said the new reg- since George W. Bush was sworn in as presi- tion efforts comes with two provisos. Funds ulations would go a long way toward clearing dent in January 2001. wouldn’t become available if “Cuba does not up long-standing problems that license appli- Dennis Hays, executive vice-president of have in place appropriate procedures to pro- cants sometimes have with OFAC. the Cuban American National Foundation, tect against the loss of innocent life in the air The OFAC reform is the work of Sen. By- said he could live with the OFAC reforms, but and on the ground in connection with the ron Dorgan (D-ND), a member of the Senate not with another provision in the Senate’s interdiction of illegal drugs,” or if there’s evi- Appropriations Committee who has spear- omnibus bill that would earmark $3 million dence that Cuban officials really are involved headed efforts in the Senate to relax U.S. trav- for joint U.S.-Cuba counter-narcotics work. in drug trafficking. el restrictions to Cuba. The appropriation, in the section of the bill Congress approved $1 million last year for Dorgan’s initial amendment would have that would fund the State Department, allows joint interdiction, thanks to the efforts of Sen. affected only licenses for Cuba, but his col- mutual assistance in the interdiction of illicit Arlen Specter (R-PA), but it’s not clear leagues on the Appropriations Committee drugs being transported through Cuban air- whether the money has been spent. decided to broaden the amendment so that it space or over Cuban waters. The Senate approved the omnibus bill on would apply to all nations under sanction. “It’s like saying ‘let’s apportion $3 million to Jan. 15 and sent it to the House for considera- “There were lots of cases that have lan- coordinate with the Mafia on crime preven- tion. A final bill will be negotiated by Senate guished for a long time without resolution, tion,’” Hays told CubaNews. The CANF and and House appropriators before the middle of and others that were denied with little or no other exile groups accuse the Castro govern- February, but — because of stiff opposition from the White House — it’s not expected to include a few Cuba provisions approved by a CNP REPORT URGES ‘PRINCIPLED ENGAGEMENT’ WITH CUBA majority in the House last summer. One of those provisions would have entire- A bipartisan advisory group, which in- restrictive policy on travel licensing for U.S. ly denied OFAC the money to enforce Cuba cludes prominent members of Miami’s exile citizens and U.S. entry to Cuban citizens. travel restrictions. Another would have community, issued a report Jan. 23 asking “Both of these steps go in the wrong direc- allowed the Cuban government to seek credit the Bush administration, Congress and the tion,” says the report, which can be down- from U.S. banks to make food purchases, and President Fidel Castro to begin a “negotiat- loaded as a PDF file from the CNP website at a third would have lifted the $1,200 yearly cap ed normalization” process. http://www.cnponline.org. “They reduce on remittances Cuban-Americans may send The Cuba Policy Advisory Group is spon- the exchange of ideas between Americans their families on the island. sored by the Center for National Policy, a and Cubans and undermine the goal of House members say they’ll promote some Washington-based think tank that says it’s greater openness on the island.” of these measures again this year, but some of “committed to identifying national issues In addition to eliminating travel restric- them are now insisting that Cuba must first that require action for common purpose.” tions for U.S. citizens going to Cuba, CNP enact more economic and social reforms. While stopping short of demanding a total asked for a loosening of restrictions on That was the message of Rep. George end to the U.S. embargo, CNP did recom- Cubans wishing to travel on short-term visas Nethercutt (R-WA), a leader in the push to mend a few specific steps the United States to the United States, including senior Cuban ease Cuba sanctions, and others at a Jan. 23 should initiate immediately. Among them: government officials, and the removal of press conference held by the Center for Na- ■ remove the current limit on remittances Cuba from the State Department’s list of tional Policy to publicize a report that recom- that can be sent legally to people in Cuba. nations sponsoring terrorism. mends policy changes toward Cuba (see box). ■ streamline or eliminate licensing and The report also urged the Castro govern- “The Cuban government has to show that reporting requirements, shipping restric- ment to lift certain restrictions on the ability it’s also willing to change the relationship,” tions and other bureaucratic regulations in of Cuban citizens to travel freely. said Nethercutt, suggesting that this new order to make it easier for Americans to sell Maureen Steinbruner, president of CNP, “common sense” approach would persuade food and medicines to Cuba, and expand the told CubaNews she hopes that the more her the White House to shed its reluctance to types of products that may be sold to include organization’s report is publicized, the more relax its Cuba policy. clothing and other consumer goods. it’s likely to gain acceptance in Congress. “We’re going to try this one thing at a time, ■ legalize private, but not public, financing case by case, issue by issue,” he said. for such commercial transactions. “We’re hoping that ultimately it will pro- ■ appoint a bipartisan task force of former vide a path forward that both the U.S. and senior government officials and experts to Cuban governments can sign on to,” Stein- review all Cuba-related laws and frame bruner said. “It’s not going to make anyone BUSINESS GUIDE TO CUBA 100% happy, but the [current] all-or-nothing options for negotiated normalization. The Business Guide to Cuba is the most ■ facilitate professional and student ex- approach is not in anybody’s interests.” CNP says its advisory group worked for a comprehensive research report on Cuban changes in the fields of science and medi- business and politics available today. year and a half on this project, and that many cine, and expand bilateral cooperation on im- With more than 300 pages of exclusive migration, drug interdiction, counterterror- group members personally visited Cuba be- information, data, charts and maps on all ism, crime and environmental protection. fore finalizing the report. Besides Jones, productive sectors of the economy — as “Despite the diverse perspectives of our members include Elizabeth Frawley Bagley, well as a list of official contacts, business members, we agree that principled engage- Max Castro, Alberto R. Coll, Carlos M. de la practices and even Cuban street slang — ment should replace isolation as the core of Cruz, Mathea Falco, William Frenzel, Har- the Business Guide to Cuba is your No. 1 U.S. policy toward Cuba,” said James R. riet Fulbright, Mimi Haas, Peter Magowan, resource on potential investment opportu- Jones, former U.S. ambassador to Mexico Elizabeth Newhouse, Ann W. Richards, nities and pitfalls in this emerging market. and chairman of the Cuba Policy Advisory Carlos Saladrigas, Alexander F. Watson, Copies of the guide are available for only Group. “Our national interest and security Thomas Wenski and John C. Whitehead. $99 each, shipping and handling included. require that we begin a dialogue with Cuba.” Details: Maureen Steinbruner, President, To order your copy, call us toll-free today CNP’s 20-page report, entitled U.S.-Cuba CNP, One Massachusetts Ave., Suite #333, at (800) 365-1997, fax us at (301) 365-1829 Relations: Time for a New Approach, criti- Washington, DC 20001. Tel: (202) 682-1800. or send an e-mail to [email protected]. cizes what it calls a shift in 2002 to a more E-mail: [email protected]. Visa, MasterCard and Amex accepted. 2003_02/CubaNews 2/4/03 10:03 AM Page 3

February 2003 ❖ CubaNews 3 POLITICAL ANALYSIS Cuban activist Oswaldo Payá grabs international spotlight

BY DOMINGO AMUCHASTEGUI This has deprived hardliners in Miami of con- a connection exists between Payá and the fter a well-publicized international siderable political stature. For them, the EU’s church or the Vatican. tour that lasted 48 days, well-known selection of Payá for the Sakharov Prize was a Pope John Paul II, during his 1998 visit to A dissident Oswaldo Payá Sardiñas re- treacherous act, an open attack on them. Payá Cuba, dismissed any possibility of meeting turned to Havana on Feb. 2 with considerably was harshly criticized by lawmakers like Rep. with Payá. And during his European tour, the enhaced credentials, recognition and support. Lincoln Díaz-Balart (R-FL), who refused to Pope received Payá only as part of a regular No other Cuban dissident has ever meet with Payá, and by various opposition public audience, with the Vatican characteriz- achieved such an international following. groups such as Unidad Cubana, Junta ing the encounter as an act of courtesy. Yet many questions remain. First, why did Patriótica Cubana and Consejo por la Payá spent less than 48 hours in Miami, the Cuban government give Payá permission surrounded by a security apparatus that pre- for such a trip? Some may argue it was the vented open meetings and interviews. result of pressure from the European Union. Clearly, his words and actions were aimed Obviously, the EU has considerable lever- at trying to appease his many opponents — age in Havana today, but it’s not because of very different from the kind of language used bullying. Rather, the EU has achieved this in- EL NUEVO HERALD in Europe, where Payá opposed the embargo fluence by becoming Cuba’s top trade partner and criticized Eastern European privatization and by cultivating a long-term constructive and other controversial actions taken after the approach to Cuban domestic politics. collapse of communism in that region. Allowing Payá to travel to Strasbourg to Meanwhile, Payá has been nominated for accept the European Parliament’s prestigious the Nobel Peace Prize by former Czech Sakharov Prize for Freedom of Thought was President Vaclav Havel. Whether he actually clearly the price Fidel Castro paid to restore Oswaldo Payá speaks to an audience in Miami. wins it is another story. After all, Payá was one his political dialogue with the EU and reapply of the few public figures who publicly sup- for membership in the Cotonou Convention Libertad de Cuba, which took out a full-page ported last April’s attempted coup against — a process he had earlier rejected because ad in Miami’s Spanish-language El Nuevo Venezuelan President Hugo Chávez, a posi- of the steep concessions it required. Herald attacking Payá and the Varela Project. tion that infuriated other Cuban dissidents. The EU, and increasingly the Bush admin- The fact that the Cuban American National Some observers say Payá made another big istration, seeks to cultivate leaders not from Foundation decided to back Payá and his re- blunder: meeting with Powell — a move that among the Cuban exile community in Miami lentless fight for political reforms have made could lend credence to the Castro govern- but in Cuba itself. The EU countries have sup- things even worse for Miami’s hardliers. ported this policy for some time, working ment’s argument that dissidents don’t repre- These continued clashes among members sent grass-roots movements but are instead with small groups led by Vladimiro Roca, of the Cuban exile community benefits the Elizardo Sánchez and other dissidents. Castro government, based on the assumption political pawns manipulated and financed by When former President Jimmy Carter of “divide and rule.” But there’s something the United States. came to Cuba and publicly endorsed Payá and else: if at some point in the future, the Castro The Varela Project has been officially dis- the Varela Project — something Fidel Castro regime permits the establishment of other qualified by the National Assembly’s Commis- knew was going to happen — few people political parties, Payá will be among the first sion of Legal and Constitutional Affairs as expected the White House to follow suit. But to benefit — unlike more radical dissidents having no legal merit. It remains to be seen if it did, repeatedly. who have allied themselves with the exiles. at some point Fidel Castro decides to encour- Not only did Payá, 50, earn warm words of Interestingly, Proyecto Varela was support- age debate on this project, as part of a nation- praise from President Bush, he also got a red- ed from the beginning by two Cuban priests al political campaign against certain dissident carpet welcome from Secretary of State Colin who disagree with the policy of the Cuban groups, the Cuban exile community in Miami Powell and Housing Secretary Mel Martínez. Catholic Church, but this does not imply that and the Bush administration.

THE VARELA PROJECT a law guaranteeing voters and candidates the right to assemble — with no condition other than respect for public order — for the Proyecto Varela, a daring referendum proposal spearheaded by purpose of discussing their proposals and ideas. All candidates will Oswaldo Payá, was presented May 9, 2001, to the People’s Power have equal access to the media. National Assembly in Havana. Under the Cuban Constitution of changes to the Elections Law that would define electoral districts 1976, the National Assembly must consider and vote on any petition for delegates to the municipal and provincial assemblies, and deputies signed by at least 10,000 citizens. Proyecto Varela has now been to the National Assembly. Under this law, each voter would be allowed signed by over 20,000 Cubans. Here are the proposal’s main points: to vote for only one candidate in any given race. In addition, citizens the right of free association according to the interests and ideas shall be nominated to elected positions only and directly by the signa- of Cuba’s citizens, with respect to the principles of pluralism and ture of voters of the corresponding districts. diversity of ideas present in society. These nominees shall submit to authorities — no more than 30 a law guaranteeing freedom of speech and freedom of the press, days before the elections — the signatures of at least 5% of the vot- to take effect within 60 days of the referendum’s passage. ers of any corresponding jurisdiction. Nominees must reside in the amnesty for all political detainees and prisoners, to take effect electoral districts they seek to represent, and must have lived in within 30 days of the referendum. Cuba for at least one year prior to the election. amendments guaranteeing citizens the right to form private Finally, this new Elections Law must take effect within 60 days, enterprises — either individuals or cooperatives — for products and and general elections must take place within 270 to 365 days, after services, to take effect within 60 days of the referendum. the referendum’s passage. 2003_02/CubaNews 2/4/03 10:03 AM Page 4

4 CubaNews ❖ February 2003 COMMODITIES Cubaniquel seeks financing to expand nickel production uba aims to produce 78,000 metric tons Between 1996 and 2001, nickel and cobalt duce one ton of nickel output. of unrefined nickel plus cobalt this year, concentrates accounted for 39.5% of all Cuban Hernández told Opciones that an 11-km- C up from 75,200 tons in 2002 and 76,500 exports by value. In 2001, those exports gen- long, German-built conveyor system will soon tons the year before. erated around $561.7 million in foreign move ore from an open-case mine higher in That’s the word from Angel Roberto Her- exchange, with Canada and Western Europe Holguín’s mountains to the nearly depleted nández, director of state nickel monopoly among the island’s leading customers. Ramous Latour plant, pushing up annual out- Cubaniquel, in a Jan. 27 interview with the Yet in the past, poor efficiency has hin- put there from the current 12,000 tons to official business weekly Opciones. dered the nickel industry — mainly at Che 17,000 tons by 2005. “We are not only going to modernize the Guevara — where over 30 metric tons of oil However, all that requires major financing. industry to significantly reduce costs, but also was used to produce one ton of nickel con- Reuters, quoting Western diplomats, says expand production,” said Hernández, whose centrate. Heavy investments in recent years Cuba has been working for over two years to entity operates two of three processing plants have cut the fuel expenditure at this plant by put together financing and suppliers for its in Holguín province, 800 kms east of Havana. half, to the point where it consumes an aver- nickel development plans, mainly with Great The two, both in Moa, are Pedro Soto Alba age 19 tons of fuel oil per ton of nickel output. Britain, Germany and Brazil. (formerly Moa Nickel Co.), which began pro- The Pedro Soto plant, which uses an acid- But no major deals have been signed due to duction in 1960, and Che Guevara, finished in leaching technology, reportedly expends $1 Cuba’s notoriously poor credit history, among 1986 with Soviet technology. to produce one pound of nickel, an excellent other factors. Cubaniquel also owns 50%, along with performance by any standard. Local analysts told Reuters that Cuba may Toronto-based Sherritt International Corp., of Both facilities are being adapted to burn now be looking to China. In early January, the René Ramos Latour plant, which began domestically produced crude oil instead of Miao Gengshu, the president of government- production in 1943 and was formerly known imported fuel, since 55% of the plants’ costs run China Minmetals Group, visited Havana as Nicaro Nickel Co. are energy-related, and burning Cuban crude in order to sign a supply deal with Cubaniquel, Cuba is currently the world’s fourth-largest saves 40% on fuel costs. though no specific details were released. producer of nickel, which is essential in the Hernández said Cubaniquel’s short-term According to Opciones, Cubaniquel also production of stainless steel and other corro- goal is to expand both state-owned facilities hopes to finish a refinery at Las Camariocas, sion-resistant alloys. so that each would soon be producing 50,000 near Moa, which was halted in 1991 after it Holguín province alone has 800 million tons of nickel plus cobalt per year. was 85% complete. tons of proven nickel plus cobalt reserves, At the Sherritt-run plant — which is under- Hernández said the plant might be used to and another 2.2 billion tons of probable going a major refurbishment to replace its process reserves of chrome into ferronickel. reserves, according to the country's National aging and environmentally unsafe technology Cuban nickel is considered to be Class II, with Minerals Resource Center. — only five tons of fuel are expended to pro- an average 90% nickel content. Ministry releases dubious 2002 foreign investment data he Cuban government signed 24 joint benefitting 16 specific sectors of the Cuban ects represent $203 million in development ventures with foreign firms in the areas economy. Also during 2002, says the MIN- aid. Of that, 21% goes to Cuba’s five eastern T of construction and basic industries VEC report, Cuba signed management con- provinces, with specific projects in nutrition, during 2002, according to Marta Lomas, min- tracts with 10 entities from seven countries. public health and environmental protection. ister of foreign investments and cooperation. In total, Lomas claims Cuba has received As of Dec. 31, 2002, Cuba had 8,213 profes- MINVEC’s public report didn’t disclose the $5.93 billion in foreign direct investment and sionals and technicians working under vari- projects, the names of the companies in- pledges of investment over the last 15 years. ous arrangements in 109 nations. volved or the dollar figures, stating only that Most experts believe actual disbursed for- – DOMINGO AMUCHASTEGUI the foreign entities represented 13 countries. eign direct investment is around $2 billion, The report did confirm that the Cuban gov- though Robert David Cruz, an associate pro- CUBA’S ANNUAL GDP GROWTH IN PERCENT ernment has 403 joint ventures in place — vir- fessor of economics and international busi- tually unchanged from last year. ness at Miami’s Barry University, says that 10 Since opening up to foreign investment, the between 1991 and 2000, Cuba has accumulat- Cuban government has authorized 578 joint ed only $98 million in foreign investment. 5 ventures and dissolved 175 of them because “There are a lot of reasons to wonder about the contracts expired or for other reasons. their statistics,” Cruz told CubaNews back in 0 Cuba’s top investment partner is Spain, November. “There’s always a big fanfare of 1990 1995 2000 03* with 105 associations, followed by Canada investments going in,” he says, “but we really (60) and Italy (57). Overall, 56% of Cuba’s ven- don’t know what happens after that.” -5 tures are with EU member countries. Based on previous years, Cruz predicted, According to the ministry report, economic Cuba would finish 2002 with FDI of between -10 associations already in existence in 2002 sold $115 million and $127 million. $1.943.4 billion worth of goods and services Cruz blames that on “the high risks associ- -15 and exported $674 million, generating $331.5 ated with investing in a fairly unpredictable * projected million for the Cuban economy. environment as well as the high investment Source: Cuban economic reports In the area of producciones cooperadas — a costs associated with negotiating the regula- Cuba’s Ministry of Economy and Planning maquila-type of arrangement between foreign tory bureaucracy.” expects the country’s GDP to expand by companies and Cuban factories — investment The MINVEC report also says the UN and 1.5% this year — up slightly from the 1.1% reportedly grew by 66% last year. its specialized agencies have 765 economic growth recorded in 2002, but far less than Companies from 25 nations led by Spain assistance projects underway in Cuba. Along the healthy 6% growth achieved in 2000. and Italy were involved in these associations, with 332 NGOs from 26 countries, these proj- 2003_02/CubaNews 2/4/03 10:03 AM Page 5

February 2003 ❖ CubaNews 5 POLITICS Critics condemn ‘elections’ In their own words … On Jan. 19, Cuban citizens sent 609 deputies “Some people say we just have to wait for Castro to die, but that’s no solu- to the National Assembly and 1,199 delegates to tion. Change can only be brought about by a civic movement of Cubans, acting provincial assemblies in the nation’s one-party, peacefully. We don’t want coups, or armed confrontations, or interventions.” one-candidate parliamentary elections. — Oswaldo Payá, founder of the Varela Project, following word that former Czech About 8.1 million of Cuba’s 8.2 million regis- President Vaclav Havel had nominated him for the 2003 Nobel Peace Prize. tered voters cast ballots, with 96.14% of them submitting valid ballots and 91.35% of them sup- “It’s a basic tenet of science to share information and have open exchanges. porting the government’s call for a “united It’s something scientists do, and Cuba is no exception.” vote” for all candidates on the slate. — Researcher Jeffrey Rosen of Houston’s Baylor College of Medicine, explaining The elections, according to the official Com- why he supports increased cooperation between U.S. and Cuban scientists. munist Party newspaper Granma, offered “over- whelming proof of popular support for the “The paper figures allow me to bring a little humor to painting. I was search- nation, the revolution and socialism.” ing for a more poetic way of saying things.” Vice President Carlos Lage called the Elec- — Adigio Benítez, a 79-year-old origami artist from Havana, and winner of tion Day exercise “truly democratic and free,” Cuba’s 2002 National Prize for Plastic Arts. even though all of the candidates ran unop- posed. Voters could either mark or leave blank “The embargo is inane strategically because it does just the opposite of what the circle next to each name on their ballots. its supporters intend. By insulating Cuba from American economic influence, Yet critics say Cuba’s electoral process vio- and most actual Americans, conservatives have indeed ‘strengthened’ and lates many universal norms of recognized par- ‘consolidated’ Cuban communism in the name of trying to pull it down.” liamentary democracies. — New York Times editorial published Jan. 12. Among other things, no accredited foreign media or independent observers were permit- “They’re the face of the regime now. The fact that we have named these ted at voting sites — despite Cuba’s Electoral individuals is for them to know that in a change toward a democratic and free Law, which allows for “public scrutiny” of the Cuba, they also have a place. We cannot exclude anyone.” elections. In addition, dissidents were turned — Jorge Mas Santos, president of the Cuban American National Foundation, away from voting areas. explaining to the Miami Herald why the CANF is offering, for the first time ever, Cuba’s leading opposition groups — the to talk with three senior Cuban officials: Vice President Carlos Lage, Foreign Assembly to Promote Civil Society and the Minister Felipe Pérez Roque and National Assembly President Ricardo Alarcón. Varela Project led by Oswaldo Payá — dis- missed the elections as a “parody” of the demo- “We do want to establish airline service into Cuba, and I’d love to be first.” cratic process and urged voters to cast blank or — David Bronner, chief executive of the Alabama pension fund that will assume voided ballots in protest. At least 313,294 voters a controlling stake in US Airways once it emerges from bankruptcy. did exactly that, acknowledged the official National Electoral Commission. “We have many trademarks in Cuba. Once the blockade is lifted, we hope to “This is not an election,” said former political negotiate with the real owners. But sometimes the real owners come to regis- prisoner Vladimiro Roca, who served a five-year ter a trademark, only to find that a pirate has already registered it.” jail term for anti-government activities. “In an — Ada Acosta Martínez, director of Servicios Juridicos Lex S.A., a Havana law election, you can choose between different op- firm which has handled 50% of the 4,000 U.S. trademarks registered in Cuba. tions. Here, the only option is to continue as we are. This is one of Fidel Castro’s many frauds.” “The Port of Tampa is doing nothing to promote trade with Cuba, and I’m A first round of balloting on Oct. 20 elected baffled.” members of Cuba’s municipal assemblies. — Arthur Savage, a prominent Tampa businessman who last month helped The National Assembly includes several well- orchestrate a 3,115-ton shipment of phosphate to the Cuban port of Cienfuegos. known personalities including folk singer Silvio Rodríguez and Juan Miguel González, father of “How long can a Congressional minority and the administration oppose the Elian González. majority support of the Congress and the American people for a change in According to the University of Miami’s Cuba Cuba policy? This tension will be a central issue in 2003.” Transition Project, 17% of the seats in the — Brian Alexander, executive director of the Cuba Policy Foundation. National Assembly are occupied by the Castro government’s senior leadership. Another 10% of “We think Cuba could be a very important market, long-term, for American assembly members are senior officers in Cuba’s agricultural producers. Every little bit helps.” armed forces. — Bob Stallman, president of the American Farm Bureau Federation, Castro, who was once again renominated to following a lengthy meeting in Havana with President Fidel Castro. the National Assembly as a delegate from Santiago de Cuba, extolled the elections as “a “We have allowed the French, the Japanese and the Canadians to seize response to the [U.S.] empire in its efforts to every viable profit-making industry in Cuba. I think we’re making a big mis- destroy the revolution.” take in not allowing American industry the opportunity to move in there and Interestingly, blacks and mulattos have con- gain economic opportunities that are being lost by our procrastination.” tinued to increase their representation in the — Sonny Callahan, former Republican Congressman from Alabama, who National Assembly. According to official figures, plans to visit Cuba in hopes of getting business for the Port of Mobile. 32.8% of all delegates are either black or mulat- to, up from 28.3% in 1998 and 26.4% in 1993. 2003_02/CubaNews 2/4/03 10:03 AM Page 6

6 CubaNews ❖ February 2003 such as taxis and restaurants were idled.” ships have been Havana, Santiago de Cuba Tourism — FROM PAGE 1 But by October 2002, some signs of recov- and Punta Francés in Isla de la Juventud. That gives Cuba the second-largest hotel ery were evident, with tourist arrivals up 10% Most of the lines that include Cuba in their inventory in the Caribbean, trailing only the over the same month a year ago. And the itineraries select Havana for overnight stays Dominican Republic, with 54,000 rooms. number of visitors to Cuba jumped 33% last and even two-day stays. But because of the Cuba will get an additional boost later this month compared to January 2002. 1996 Helms-Burton Act, any foreign ship that month, when at least three charter airlines calls on a Cuban port is banned from U.S. plan to begin direct flights to Cayo Coco, a POST-9/11 STRATEGY IS PAYING OFF ports for a period of six months. sandy key along Cuba’s northern shore in an One reason for Cuba’s relative success may In an Oct. 31 petition to the United Nations, area known as Jardines del Rey. be its strategy in the aftermath of Sept. 11. the Castro government complained that after An international airport operated by Span- European Festival Cruise Lines based one of ish management company AENA opened late Unlike most Caribbean destinations, which its largest vessels, El Mistral, in Havana for last year to receive these wide-body flights, to lowered their prices as much as possible, be operated by Air Canada, Austria’s Lauda Cuba took a different tack, refusing to lower weekly voyages between December 2001 and Air and Condor, Lufthansa’s charter company. hotel and all-inclusive rates for fear of under- March 2002, the company “was subjected to Upon arrival, tourists can stay at any of 11 mining the attractiveness of its market. enormous pressure to cancel its itinerary, and luxury hotels — six of them managed by By the end of 2001, two major hotels were was forced to include a warning saying “these Spain’s Grupo Sol Meliá — that already line completed in Varadero by French conglomer- cruises cannot be offered in the U.S.” in its the beaches of Cayo Coco and neighboring ate Bouygues. In 2002, Cayo Guillermo. several more hotels “Twenty years from now these keys could were inaugurated, in- be the premier resort in the Caribbean,” said cluding the 404-room former CIA spy Philip Agee, now director of a Sandals Royal Hicacos Havana-based travel agency, in a recent inter- Resort & Spa in Vara- view with Reuters. “These islands go on and dero. This property — on for hundreds of miles and offer a fabulous managed by Jamaica’s combination of beach, scenery and wildlife. Sandals Royal Resorts There is a huge market out there for almost and aimed at European virgin islands like these.” and Latin tourists — is The direct flights will help Jardines del Rey a four-star, all-inclusive develop quickly, because tourists won’t have “couples-only” resort, to travel overland from Havana, Varadero or with occupancy said to other Cuban airports. Even so, says Reuters, be running at 35-40%. the area’s hotel rooms will probably stay rela- The Playa Pesquero, The A’ Rosa Blu heads for Old Havana with over 900 passengers aboard. tively empty until the Americans show up. opened by Castro, was “Cayo Coco is a beautiful destination with a finished in only 22 months using Cuban capi- May-December 2002 promotional materials.’” number of nice hotels,” said Bernd Herr- tal and construction workers, with technical Likewise, when Carnival Corp. bought mann, a Havana-based travel executive. “But help from Bouygues. It’s being managed by Costa Cruciere, an Italian firm, the company’s some of them were built too quickly and seem Gaviota S.A., the rapidly growing commercial $62 million project to repair the Sierra Maes- too big. I’m not sure they can fill them all in division of Cuba’s armed forces. tra cruise-ship dock was terminated at the the short run — maybe when the American insistence of the U.S. Treasury Department. tourists arrive.” CRUISING TO HAVANA “Cuba’s problem is, the cruise industry is Another area that seems to be showing controlled by U.S. operators, and there’s only TOURISM NOW TOP HARD-CURRENCY EARNER some promise is cruise-ship arrivals. a handful of independent European compa- At the moment, Cuba has 240 hotels (inclu- Silares S.A., an Italian company operating nies,” said the cruise-ship executive. ding 102 four- and five-star properties), up in a joint venture with the Cuban government, “And the company that operates A’Rosa Blu from only 17 in 1990. Tourism as a whole gen- is expanding Havana’s Sierra Maestra cruise- will soon get bought by Carnival, so they will erates roughly 300,000 direct and indirect ship terminal to allow up to six ships to berth have to stop calling on Havana,” he said. “It’s jobs (compared to 84,000 in 1990) and in 1996 there simultaneously. The city’s master plan too bad, because they’re trying hard to find surpassed sugar to become the No. 1 foreign- calls for all cargo ships to be eventually diver- ships that can call there. But ships that meet exchange earner for Cuba. ted from Havana to the port of Mariel, so that the qualifications are getting fewer and fewer.” Local entities supply now 68% of the Cuban only cruise ships will sail into Old Havana. Yet all that could change overnight. tourist industry’s needs, up from 51% in 1999 During 2003, Silares expects 120 cruise- Once restrictions disappear, an estimated and only 12% in 1990. Meanwhile, 23 regular- ship visits carrying 75,000 passengers, a dra- 3.5 million U.S. cruise visitors could be arriv- ly scheduled airlines and 28 charter airlines matic increase from the 60 visits and 45,000 ing annually on modern vessels operated by connect Cuba with the rest of the world. passengers last year. Carnival, Royal Caribbean Cruise Lines and But “if tourism is socialist Cuba’s first ma- That’s still less than the 100,000 passengers jor brush with globalization, the results have who arrived on 200 stops in 2000, said Gianlu- P&O Princess, which together control 85% of not all been positive,” says Philip Peters, vice- ca Suprani, the company’s managing director. all cruise traffic to the Caribbean. president of the Lexington Institute, a think But even 100,000 cruise-ship passengers is Building the necessary infrastructure won’t tank based in Arlington, Va. hardly impressive when compared to the Car- be easy. Five megacruisers arriving in Havana “The economic downturn of 2001 and the ibbean’s busiest ports of call. This year, said at the same time would mean 10,000 people travel scare that followed the Sept. 11 terror- the Miami cruise-ship executive, Key West demanding ground transportation, restau- ist attacks combined to stop the growth of will get 1 million cruise visitors, San Juan 1.1 rants, nightlife and interesting places to visit. Cuban tourism in 2001 and 2002, preventing million, St. Thomas 1.9 million, Nassau 2 mil- But Peters thinks Cuba can handle it. Cuba from reaching its projected level of two lion and Cozumel 2.2 million. “As a destination, Old Havana is getting million visitors,” Peters wrote in a 16-page re- “There’s nothing we can do until the travel better and better. Its colonial area is larger port entitled International Tourism: The New ban is lifted. When something happens, then than Old San Juan, and it blows Nassau out of Engine of the Cuban Economy. “Initially, the we’ll gear up a plan,” the official said, asking the water,” he told CubaNews. “When you impact was severe; 10,000 hotel rooms were that neither he nor his company be identified. bring American cruise-ship passengers to Old put out of service, and many support services Traditionally, Cuba’s main stops for cruise Havana, they’ll think they’re in Europe.” 2003_02/CubaNews 2/4/03 10:03 AM Page 7

February 2003 ❖ CubaNews 7 FOREIGN INVESTMENT Canada’s Labatt plans $100 million brewery near Havana BY LARRY LUXNER Only 1% of the 2.45 million hectoliters of beer Cuban-brewed beer.” ervecería Bucanero S.A., a joint venture consumed annually in Cuba is imported. At present, Cuba’s per-capita beer con- between the Cuban government and A bottle of Cristal costs 75 cents, compared sumption is 21 liters a year — considerably C Canada’s Labatt Brewing Co. Ltd., plans to $1.15 for Heineken, one of Labatt’s chief lower than that of the nearby Dominican Re- to construct a 1.5 million-hectoliter brewery to competitors. Other imported brands sold in public (36 liters) and Puerto Rico (64.8 liters), keep pace with increasing domestic beer con- Cuba’s hard-currency market include and the Latin American average of 50 liters. sumption — and to be ready for an onslaught Bavaria, Carlsberg and Corona. The Labatt official said his company would of U.S. brands once the embargo is lifted. Last year, Heineken shipped 200,000 cases like to promote Cristal more heavily, but that The new brewery and its supporting na- of beer to Cuba, up slightly from 2001. The “broadcast advertising is not permitted in tional distribution network will cost at least Dutch giant sells directly to Aerocatering, Ci- Cuba. The only radio spot we have is on Radio $100 million. A company official in Toronto mex, ITH, Cubalse and other state agencies. Taíno [which targets foreign tourists]. So it’s told CubaNews that the project, to begin later “The profit margin is pretty high, but distri- all been point-of-sale.” this year at an undisclosed location on the bution costs are also high, since Cuba’s infra- At present, U.S. firms can export beer to outskirts of Havana, will more than double structure is not so good,” a Heineken official Cuba on a cash-only basis under the Trade Labatt’s existing capacity in Cuba. told CubaNews. Sanctions Reform and Export Enhancement “We believe we’re selling primarily to Labatt’s interest in the Cuban beer industry Act of 2000. However, no major brewery has Cubans, but we also recognize that it’s really began with its export program in the late ‘80s. done so, industry sources suggest, because the inflow of U.S. dollars into the country that Its involvement culminated with the forma- it’s not worth the risk of angering Miami’s will drive the volume,” said the official, who tion of Bucanero in 1997. powerful Cuban exile community. asked not to be identified. Last February, the two partners agreed to The issue is so sensitive that Mike Torres, Bucanero is a 50-50 venture between expand their venture “through investment in a spokesman for the nation’s largest brewery, Cuban state entity Coralsa and a Labatt sub- the new brewery and an expanded distribu- Anheuser-Busch of St. Louis, Mo., politely sidiary, Cerbuco Brewing Co. The venture, tion network, in order to have in place the told CubaNews that his $15 billion conglomer- established May 2, 1997, currently operates a necessary capacity for future demand for ate “prefers not to participate” in this story. brewery in the eastern province of Holguín. This 1 million-hectoliter facility brews Cristal, Bucanero and Mayabe beer brands as well as Bucanero Malta, a malt-based beverage. Bucanero employs five Canadian expatri- ates and 500 Cuban workers at the Holguín brewery and throughout Cuba in its distribu- tion network. The venture reported $50 mil- lion in gross sales last year and is profitable. At present, Bucanero brews 29% of all beer sold in Cuba, with 70% produced in six brew- eries belonging to the Cuban government. Cristal beer, available in bottles and cans, is sold to foreign tourists as well as Cubans with dollars. Glenfiddich’s new ‘Cuban’ Scotch off-limits to U.S. drinkers

yped as “an eclectic fusion of Scotland to which the embargo has gone. More often He said the company considered rums and Cuba,” Glenfiddich Havana Re- than not, it ends up with interpretations that from Venezuela, Guyana and elsewhere Hserve 21 Year Old Scotch whisky is al- are dubious and almost laughable.” before settling on the Cuban variety. “For me, ready making handsome profits for its distil- For Europeans and Canadians, however, it’s all about having the right taste, and yes, lers, William Grant & Sons International Ltd. that “Cuban connection” has given Glenfid- Cuba adds cache to the product. In our case, “Basically, we’ve sold everything we could dich Havana Reserve a bit of sex appeal — a it’s had a particularly good effect on sales.” produce,” the distiller’s rare whisky manager, fact its distillers have carefully exploited For now, most TV spots have been aimed at James Doherty, said in a phone interview. through television spots filmed in Old Havana the U.K. and European markets, though Glen- Since launching it last June, William Grant and promoted on the company website. fiddich Havana Reserve is now also available & Sons has sold about 1,800 cases of Glenfid- “We brought aged rum from the Sierra del in Canada, where it sells for C$130 to C$150 a dich Havana Reserve. At the rather stiff price Escambray region of Sancti Spíritus province bottle and is being marketed with the slogan: of £59 (around $97.30) for a 700-ml bottle, that and filled it into casks for a period of up to two “Politics hang heavily over this product.” comes to more than $2.1 million in sales. years before emptying the casks and filling Bernard Pearson, vice-president of PMA Yet because this particular whisky is aged them with whisky for the final six months of Ltd., the Toronto-based sales agent for Glen- in casks that once contained Cuban rum, you maturation,” Doherty explained. fiddich, says “we have a waiting list. We can’t won’t find it for sale in any U.S. liquor store. “The wood has picked up character from keep up with the demand.” “We have had two independent legal opin- the rum, and the whisky then draws some of Even so, the new Scotch constitutes less ions concluding that this product has the character out of the wood,” he said. “The than 0.25% of the company’s total annual vol- acquired a sufficient Cuban connection to run result is an exotic blend of toffee, banana, gin- ume of 770,000 cases. afoul of the Helms-Burton Act,” Doherty told ger and a subtle zing of lime.” While he declined to go into details about CubaNews. “So we have chosen not to sell it in According to Doherty, the unusual product the financial arrangements, Doherty did say the United States.” came about because “we were looking for a that William Grant & Sons buys the Cuban Says Max Castro, a senior research associ- new adventure, to add an element of intrigue rum from an intermediary based in the U.K., ate at the University of Miami’s North-South to Glenfiddich” — a single-malt whisky brand and not directly from the Cuban government. Center: “This points out the absurd extremes that has been distilled in Scotland since 1887. – LARRY LUXNER 2003_02/CubaNews 2/4/03 10:03 AM Page 8

8 CubaNews ❖ February 2003 NEWSMAKERS Jaime Suchlicki: Predicting the post-Castro panorama

BY LARRY LUXNER A chief component of the project involves money and writing what those who give you any so-called experts like to pontifi- the creation of four computer databases on the money want you to write. Nobody tells me cate on what’ll happen to Cuba once Cuba. The first contains general information; what to write or what to recommend. If that M Fidel Castro passes from the scene. the second is a bibliographical database of all were the case, I wouldn’t accept the money. Jaime Suchlicki has made a career of it. articles and studies ever done on transition in “Furthermore, the U.S. government does As director of the University of Miami’s Cuba; the third is a legal database containing not want someone to tell them what they’re Institute for Cuban and Cuban-American Stu- the text of Cuba’s foreign investment code already thinking. They want good analysis.” and other laws, and the fourth is a database dies (ICCAS), Suchlicki heads a seven-person HOW WILL THE CASTRO ERA END? staff devoted to the analysis of Cuban politics listing all known foreign investments in Cuba and “transition” issues. The 63-year-old acade- and the dollar amount of each investment. To that end, Suchlicki has outlined 21 spe- mic has chaired more “how-to” and “what-if” In addition, ICCAS has sponsored a series cific scenarios, along with the probability of seminars than even he can remember — the of studies dealing with everything from con- them taking place within the next two or three most recent one held Jan. 15 at the center’s fiscated properties and foreign investment to years. These include the following: Casa Bacardi in Coral Gables (see box, page 9). “The institute’s main objective is to pre- serve Cuba’s history and culture,” he told CubaNews during a lengthy interview in Miami. “Our second focus is on what’s hap- pening in Cuba today, and our third is plan- LARRY LUXNER ning for transition to democracy in Cuba.” A LONG AND DIFFICULT ROAD AHEAD Suchlicki, the son of Jewish immigrants from Poland, was born in 1939. His father owned a department store on Havana’s Prado, but early on, he was involved in the struggle against Batista. In 1960, Suchlicki came to the United States, eventually enrolling at the Uni- versity of Miami and earning bachelor’s and master’s degrees in Latin American history, He then did doctoral work at Texas Christian University in Fort Worth, eventual- ly returning to Miami, where he was founding executive director of UM’s North-South Center from 1989 to 1992. Seven years later, Jaime Suchlicki, director of University of Miami’s Institute for Cuban and Cuban-American Studies. he helped establish ICCAS. “Back in 1990, I became famous in Miami the future of the Cuban Communist Party and ■ Fidel dies and his brother Raúl takes over when I told Cuban exiles, ‘buy your suitcases the role of international organizations (see in an orderly fashion (80%). but don’t pack them,’” said the wisecracking CubaNews, November 2002, page 10). ■ Fidel and Raúl both die, and the Cuban mil- scholar, whose office shelves are crammed ICCAS has also published a series of pam- itary takes over (60%). with hundreds of books, including at least five phlets on how to run private companies, ■ Refugees flood the U.S. Naval Base at of his own: “Cuba, Castro and Revolution,” establish labor unions and fund political par- Guantánamo, sparking violence (30-40%). “Historical Dictionary of Cuba,” “Investing in ■ Cuba undergoes peaceful transition to Cuba,” “The Cuban Military Under Fidel Cas- ties “once transition begins in reality in Cuba.” These documents are being translated democracy (less than 20%). tro” and “Cuban Communism, 10th Edition,” ■ co-authored with Irving Louis Horowitz. into Spanish and sent to Cuba via e-mail, the Violent demonstrations in Cuba bring A poster of one of Suchlicki’s favorite her- U.S. Interests Section and other means. So down the Castro regime (less than 20%). far, about 20,000 CTP documents have been ■ Cuba’s military stages a coup d’etat (10%). oes, Albert Einstein, hangs on the wall near ■ several antique maps of his beloved island, smuggled into Cuba one way or another. The United States sends the Marines into which he has not visited in 43 years. Suchlicki says this kind of propaganda blitz Cuba (less than 5%). “It’s gonna be a long and difficult transition, is essential to preparing the Cuban people for ■ Fidel is assassinated (less than 5%). democracy. and our project is still going to be valid VARELA PROJECT HAS ‘NO CHANCE’ OF SUCCESS whether that transition happens now or in “The first thing we should be doing is pro- three years,” he said. “You still have to know viding information and literature,” he said. In all likelihood, Suchlicki predicts, “Fidel’s how to deal with corruption, what to do with “I’d like Cuban-Americans, whenever they death will not usher in a collapse of the sys- the economy. These are timeless topics.” visit Cuba, to bring in newspapers, magazines tem. It will usher in a succession to Raúl and and literature. I’m not talking about subver- the military, with some civilian leadership as a USAID FUNDS CUBA TRANSITION PROJECT sive propaganda. But if you send information front. That does not necessarily mean the rev- Indeed they are. In order to address them, that talks about how to organize the economy olution will collapse.” Suchlicki two years ago established the Cuba and the issue of private vs. state enterprise He adds: “This is based not on an analysis Transition Project, which has already re- and which one is more productive, it’ll get of Raúl, but on an analysis of the strength of ceived a $1 million grant from the U.S. people thinking. That’s the objective.” the institutions behind Raúl — the military, Agency for International Development; anoth- Suchlicki scoffed at suggestions that taking the Cuban Communist Party and the state er $1 million for the project’s second year will USAID money taints him in some way. security apparatus.” probably be forthcoming next month. “There’s a difference between accepting As far as Oswaldo Payá and his chances of 2003_02/CubaNews 2/4/03 10:03 AM Page 9

February 2003 ❖ CubaNews 9 reforming the system from within, says they’re gonna let me out,” he said only half- hold onto this policy and use it with a govern- Suchlicki, “the Varela Project has no chance jokingly, adding that “Fidel doesn’t like what I ment that is willing to provide concessions. of going anywhere. It’s a challenge to the sys- write, for obvious reasons. Ten years ago, I Don’t give it away just because Fidel dies.” tem, but it’s a challenge Fidel has taken on. was speaking at the Council of Foreign Rela- In the meantime, says Suchlicki, “President Before the next Party Congress, he’ll further tions in New York. After the speech, the third Bush has a real personal commitment to see a squash opposition — not as violently as in secretary of Cuba’s mission to the United democratic Cuba, and secondly he has some China, but he will eliminate it.” Nations came over and told me I was wrong political realities to deal with.” about my views, and invited me to visit Cuba.” On the other hand, “the Elian González NO DESIRE TO VISIT CUBA — NOT YET Suchlicki never accepted the offer, and event showed Cuban-Americans that they Suchlicki hasn’t been back since 1960, but doesn’t appear likely to now, either. were not as powerful or effective as they he insists that one doesn’t have to visit the For one thing, he opposes any relaxation of thought they were, that Washington had a lot of disregard for Cuban-Americans, and that island to understand what’s going on there. Washington’s embargo against Havana; even the media disliked the community.” “The best centers of Soviet studies were lifting the travel ban, he says, would endanger housed at Harvard, run by emigrés who those who support democracy for Cuba. DEMOCRACY AND MIAMI’S CUBAN COMMUNITY If in fact democracy does come to Cuba, we asked Suchlicki, will that stem the exodus of refugees and begin to lure Cuban-Americans back to the island? “Fidel’s death won’t usher in a collapse of the system. It’ll usher in “I don’t think there’ll be an end to Cuban a succession to Raúl and the military, with some civilian leader- migration to Miami. Even in a democratic Cuba, a lot of Cubans will take the opportuni- ship as a front. That does not mean the revolution will collapse.” ty to get out,” he replied. “They’ll come direct- ly to Florida and through third countries, and they’ll come legally because their relatives will claim them. And while Cuban-Americans might return to do business and buy a condo never returned to the USSR,” he said. “I don’t “I don’t think U.S. policy should be changed in Varadero, most won’t return to live there.” think it’s a prequisite to go to Cuba in order to without a quid pro quo,” he said. “Lifting the Economically, he said, the Cuban people understand it. If you study Cuban alligators in ban and permitting Americans to visit Cuba would welcome investment and expertise their habitats, then you need to visit the would only enrich those who control the from their brothers across the Florida Straits, swamps. But you don’t need to go to Cuba to tourism industry, i.e., the Cuban military. though that welcome could quickly wear thin. analyze Castro’s policies or actions. You can “Secondly, I think that if we lift the embar- “Politically, I think there’ll be a problem if learn it all from watching his speeches on TV.” go and the travel ban unilaterally, without any the Miami Cubans try to run Cuba,” Suchlicki And even if he did go, Suchlicki fears it may changes in Cuba, we’ll have no bargaining told us. be a one-way trip. chips with a future government. Fidel is not “Some of them aspire to be president of “They may let me in, but I don’t know if about to make changes in Cuba. We should Cuba, but they don’t have a chance.”

MIAMI’S CASA BACARDI KEEPS FLAME BURNING FOR SOUTH FLORIDA EXILES It’s named after the world’s largest rum distiller, but Casa Bacardi While the focus is clearly on culture, not current events, Suchlicki has almost nothing to do with rum — or any alcoholic beverage. concedes that “it’s impossible to stay away from politics in Miami.” Rather, Casa Bacardi aims to be the world’s first interactive cultural To that effect, Casa Bacardi, through its link with ICCAS, has spon- center dedicated to the history and culture of Cuba. sored thought-provoking seminars ranging from “How to Accelerate “This is for anybody who wants to know about Cuba, not only Transition in Cuba” to “Castro, Biotechnology and Terrorism.” Cuban-Americans but all visitors to Miami,” explains director Jaime Not too long ago, Casa Bacardi sparked a little controversy when Suchlicki. “It’s the only place like it anywhere in the world.” Suchlicki invited defector Alcibíades Hidalgo, Raúl Castro’s former Casa Bacardi opened in May 2002 thanks to a $1 million grant from chief of staff, to speak about the Castro regime. the Bacardi Family Foundation (this is unrelated to USAID money). “Some people were unhappy that I brought him here because, until Yet aside from a portrait of Emilio Bacardi Moreau and a few photos recently, Hidalgo was a supporter of Castro,” said the director. “But of aging distilleries, Bacardi’s presence here is decidedly low-key. we welcomed him because this is an academic institution. Some peo- Suchlicki said the rum company attached “absolutely no condi- ple feel I’m not hard enough on Castro, some people feel I’m too hard. tions” to its generous gift, other than its wish “to preserve and dis- You can’t please everybody.” seminate Cuban history and culture.” On the other hand, current Cuban officials are never invited. And that it does quite well. Casa Bacardi’s first exhibit was a Smith- “They don’t give equal sides to the story in Cuba, so why should I sonian Institution gallery of original photos of Cuba taken in 1902. The current exhibit tells the story of Cuba’s cigar industry through hun- give them a platform?” he asked. “It would be an insult to this com- dreds of colorful cigar labels and cigar-box displays. And on Mar. 1, munity, sort of like inviting an official of Nazi Germany to explain his Casa Bacardi will kick off an exhibition on Cuban painters — both government’s position to the Jews of New York during World War II.” those living in Cuba and those living abroad. Suchlicki also said he won’t host guest speakers from the University The museum, open weekdays from 10 a.m. to 5 p.m. and weekends of Havana or any other Cuban institution of higher learning — at least from 2 to 5 p.m., also has a cinema for daily screenings of films about not until Castro is dead, overthrown or voted out of office. Cuba, along with a music pavilion where visitors can put on head- “We have no problem with individual researchers or people coming phones and enjoy over 2,000 Cuban songs spanning nearly a century back and forth. But we don’t have any institutional relations with any of recorded music from Benny Moré to the Buena Vista Social Club. institutions in Cuba,” he explained. “These are all arms of the Cuban Adjacent to the music pavilion is the Cuban Information Center, fea- government, and as long as I’m the director, that will be our policy.” turing Cuba On-Line — a comprehensive archive of Cuban history Details: Casa Bacardi, PO Box 248174, Miami, FL 33124-3010. Tel: and information. At computer stations, visitors can test their know- (305) 284-2822. Fax: (305) 284-4875. E-mail: [email protected]. ledge of the island by taking one of several quizzes on Cuban history. – LARRY LUXNER 2003_02/CubaNews 2/4/03 10:03 AM Page 10

10 CubaNews ❖ February 2003 RETAIL Cuban grocery shoppers eager to try new U.S. food items BY DOUGLASS G. NORVELL nder the Trade Sanctions Reform and Export Enhancement Act of 2000, the

UCuban government may buy a variety LARRY LUXNER of U.S. farm products on a cash-only basis. As a result, Cuban food purchases from the U.S. jumped from $4.5 million in 2001 to $155 million last year, and are expected to reach $230 million in 2003 (see chart, page 11). Just to make sure everyone understands the deal, the U.S. Department of Agriculture has published a 20-page list of approved com- modities on its official website that includes luxuries like lobsters and live eels. I wouldn’t want to try and convince my Cuban friends to eat a live eel, nor would I want to sell them American lobsters costing $40 each, when Cuban lobsters are easily available for under $5 apiece. But a growing variety of U.S. food products (like apples for anywhere from 30 to 75 cents each) are now available at state-run dollar stores and at subsidized food distribution Havana woman buys vegetables at a neighborhood market where all the prices are in Cuban pesos. warehouses or bodegas, where virtually all cit- izens receive subsidized food. of skin, then cooked the big pieces in oil. The Frozen chicken parts (legs and thighs) are two other accountants cooked the chicken DOLLAR PRICES AT CUPET AND available in dollar stores for about 50¢/lb. enchilado (peppered) which in Cuba means CAFETERIA EL JUVENÍL, HAVANA and are sold in kilo-sized packages, along preparing a sauce of tomato purée, cumin, with U.S. eggs for 12¢ each. Cubans prefer dry white wine, salt and garlic. ITEM PRICE dark-meat chicken parts, which are more All four women perked up at the mention of Ham & cheese sandwich (101.5g) $1.20 moist and flavorful than white meat when brown eggs from the United States. cooked with rice and vegetables in the tradi- “They look and taste just like the eggs that Pizzeta (160g) 0.50 tional arroz con pollo dish. you get out in the country!” said one. “I Pizzeta (80g) 0.25 In the government bodegas, each member believe the American chickens eat different Choripán (40g) 0.50 of the family is allocated just over a pound of things,” said another, accurately, for U.S. chicken a month, although shortages were poultry producers do feed marigold flowers to Bocadio de jamón (43.5g) 0.60 common during the last decade. Like most chicken specifically to add color to yolks. All Hamburguesa 0.85 products in such warehouses, the price of shook their heads no and grimaced when Fried chicken (145g) 1.00 chicken barely covers transportation costs asked if American eggs came to the bodegas. Crackers & wafers (per package) 0.70 (about 3¢/lb., paid in Cuban pesos). “Only in the dollar stores,” they said. When chicken, beef or potatoes are avail- When asked what other U.S. products they Tortica (pastry, per piece) 0.10 able in a bodega, word spreads quickly and liked, the entire group jumped immediately Masa real (pastry, per piece) 0.20 Cubans gather to receive their share. into baby foods (cereales in Cuban Spanish). Cardenal (pastry, per piece) 0.30 To gather some insights, in early Decem- All had sampled American baby food from Merit Lights (20-pack) 2.85 ber I spoke with four Cuban women respon- jars of apple and banana products along with sible for shopping and preparing meals for oatmeal and other cereal products. Benson & Hedges (20-pack) 3.75 their families. Ranging in age from 32 to 48, “We eat a little tiny bit,” they said, Lucky Strike (20-pack) 1.40 all four held tecnico medio degrees (two years “then give the rest to the baby.” Benson & Hedges (20-pack) 3.75 less than a full university degree) — three in The group became even more enthused Sanitec toilet paper (4-roll pack) 1.00* accounting and one in education. Only the when I asked what other products they’d like schoolteacher is still working. Two of the to see in the future. “More beef and pork, and Guatemalan margarine (per stick) 0.40* four receive money from relatives aboard and turkeys,” said one. “Those turkeys in America Marsh-brand margarine (1-lb box) 1.65* are therefore able to shop in the dollar stores. are huge, and I want some of those big Marsh-brand sweet butter (1-lb box) 3.80* All four women had tried U.S. chicken, onions. They look wonderful.” which they viewed the same as Canadian “Send us a lot of different kinds of meat, to Pepsodent toothbrush 0.70* chicken, but different from domestic birds. have good health,” said another. “Meat, a lot Mini-tampons (box of 10) 2.75* Each nodded in agreement when the school- of meat,” said her friend. “Then I can cook it Star Value mayonnaise (470-ml jar) 2.00* teacher said, “The U.S. chickens are bigger. on the grill.” Star Value mayonnaise (950-ml jar) 3.95* They have bigger thighs and are fatter.” Later on, I wondered if a typical American Each woman prepared the chicken differ- diet would benefit Cubans, who are slender, Yacht perfume (100-ml) 2.65* ently. The schoolteacher fried it without bat- strong and graceful. During my 3-week stay, I Slik men’s cologne (18-ml tube) 0.60* ter, in garlic and then seasoned with fresh ate a fresh papaya and coffee for breakfast Bosch fan belt (for Lada, Moskvich) 4.35* lime juice, to be served with rice and beans. each day, an egg and a little bread for lunch, Castrol motor oil (1 quart) 6.85* One of the accountants boiled the chicken, and rice and beans for supper — and by the picked off all of the skin and fried the pieces end of the trip, I was 10 pounds lighter. *Items priced at the 24-hr. Cupet, 5ta Avenida and 112, Miramar 2003_02/CubaNews 2/4/03 10:03 AM Page 11

February 2003 ❖ CubaNews 11 TRADE Embargo’s end could spark fruit, vegetable export boom ill Cuba emerge as a supplier of fresh units of production.” In addition, Cuban growers will be able to fruits and vegetables to the U.S. once With help from foreign investors, Cuba respond to urgent needs, dispatching ship- W the embargo is dropped? began exporting fruit juice to Europe, Latin ments at shorter notice. Most likely, say the experts. Cuban grow- America and other Caribbean countries. One Cuba has plenty of land available for veg- ers could play a major role in supplying fresh investor, Israel’s BM Group Ltd., reportedly etable production — and even more now that fruits and vegetables to markets along the spent $22 million to improve the quality of the government is closing 71 sugar mills and East Coast, just as Mexican growers supply diverting half the island’s sugar-cane land to the West Coast and most of the Midwest. U.S. FOOD SALES TO CUBA other uses including the production of root Consider the historical evidence. After the crops and citrus. Atlantic Seaboard Railways were built early in $230 Another, more subtle, advantage is Cuba’s the 20th century, South Florida became the 200 36th position as a “late mover” in fresh produce winter garden for the northeastern United worldwide exports. As such, Cuba will be able to conduct States. Vegetable growers in Homestead, Fla., careful market analysis prior to beginning shipped tomatoes, cucumbers, citrus and production and respond to real rather than 150 imagined opportunities. For example, the other horticultural products north to New $155 York, Philadelphia and other markets by rail. U.S. appetite for organically grown vegetables 47th is expanding, and the Cubans can target this By the late 1970s and early 1980s, virtually worldwide all South Florida vegetable growers were out 100 market. Cuban biologists have shown prom- of business due to increasing labor costs, ise in controlling insects through biological competing land uses and tough environmen- rather than chemical means. tal restrictions — not to mention competition Yet even after the embargo ends, Cuba’s 50 from Guatemala and the Dominican Republic. Cuba ranked entry into the U.S. market won’t be easy. Like 144th anywhere else in the world, U.S. fresh-pro- Dave Warren, who owns and operates worldwide Central American Produce in Pompano duce markets run on family and business con- Beach, Fla., took a 50-lb. bag of snow pea seed $4.5 nections; many of the importers in Pompano 0 to Guatemala 30 years ago, helped small farm- 2001 2002 2003* Beach are Italians who formerly shipped to ers to crank up production in the highlands — other Italians in the Northeast before the and now Guatemala is the world’s largest pro- In millions of dollars; 2003 is an estimate Koreans entered the business. ducer of snow peas. Like Warren in Pompano Beach, many In total, the United States imports just over orange production at the vast orchards of wholesalers have investments in grower oper- $6 billion worth of fresh fruits and vegetables Jagüey Grande, in the province of Matanzas. ations. Others will be reluctant to start doing every year. Once the embargo is over, Cuba will have business with new suppliers, preferring to Cuba has a demonstrated ability to export an important geographical advantage over rely on tried and true trading partners. agricultural products. After fresh fruit suppliers from Central America and the Moreover, the Cuban government has exports to Russia and Eastern Europe tanked Dominican Republic. Although transporta- angered some foreign firms by changing the in the early 1990s — falling from one million tion costs may not differ greatly from one rules of the game after the projects were well tons to 500,000 tons by 1995, Cuban growers place to another, Cuba will be able to get its underway — leaving their foreign partners broke up large, inefficient agricultural coop- produce to market quicker, reducing spoilage with less-than-anticipated profits. eratives into smaller more efficient “basic and in some products, improving taste. – DOUGLASS G. NORVELL Canadian food suppliers getting stiffed; U.S. rivals like status quo As the Washington-Havana trading honey- “Companies like ourselves extended a that “U.S. companies have reported no pay- moon continues, gains by U.S. agribusiness huge credit to Cuba, $10-15 million of credit ment collection problems. As a result, due to traders are being matched by losses on the at any one time,” he said. “Anybody else deal- an absence of payment risk, Cuba has become Canadian side. Even worse, Cuba is dragging ing with Cuba looks at this current setup with one of the safest export markets in the world its feet on paying Canadian suppliers. the States and laughs because all of this new- today for U.S.-based companies.” Michael Thomas is president of Montreal- found wealth from nowhere. Cuba does not Kavulich warns that “if new payment terms based MTD Trading International, which at have the financial resources long-term to pay and U.S.-origin financing are authorized for one time accounted for 75% of Canada’s chick- for products up front. It’s short-lived. The agricultural and food product exports to en exports to Cuba. U.S. will start to see cancelled orders.” Cuba, the potential incremental increase in “As soon as they found the United States, John Kavulich, president of the U.S.-Cuba dollar value would be outweighed by a 100% they dumped Canada immediately, without a Trade and Economic Council Inc., told increase in risk. blink, overnight,” Thomas told a food-indus- CubaNews that Canadian exports to Cuba “Given the Cuban government’s chronic try trade publication. “It would have been fine declined by 37% in 2002, with poultry exports shortage of foreign exchange, and despite the if they’d paid all their debts, but they didn’t do alone plummeting by 70%. best of intentions, there would exist a sub- that. At the time it was up to $10 million in Interestingly, 94% of the 307 U.S. food and stantial likelihood of payment delays or debt, and now, a year later, I’m still owed half agribusiness export companies responding defaults as discharging payment obligations a million dollars.” to a questionnaire by Kavulich’s organization on a timely basis to U.S. companies would no Thomas — who like many other Canadian say they “do not want a change in the cash- longer be required,” he said. executives no longer trades with Cuba — only provision” of the Trade Sanctions Re- “Non-U.S. companies with outstanding obli- complains that the Castro government start- form and Export Enhancement Act of 2000. gations from Cuba would demand that those ed to delay payments last November and used Results of the survey, conducted Jan. 14-24 obligations be rendered current prior to pay- that saved money to pay for U.S. products. among senior-level executives, reflect the fact ments being made to U.S. companies.” 2003_02/CubaNews 2/4/03 10:03 AM Page 12

12 CubaNews ❖ February 2003 $1 billion to develop the oil and gas industry, erary so far this year. Previously, Viñales had BUSINESS BRIEFS build power plants that use natural gas and hired direct charter flights from Tijuana and refurbish existing plants to burn local crude, Guadalajara to Havana, in addition to existing CIMEX CONGLOMERATE UNVEILS 2003 PLANS which has an extremely heavy sulfur content. flights on Tuesdays, Thursdays and Saturdays Corporación Cimex S.A., one of Cuba’s But a foreign-exchange shortage and higher between Mexico City and Havana. largest state corporations, says it will spend prices have forced Cuba to slash fuel imports. Viñales has also signed an agreement with $34 million this year to upgrade the automo- Officials have warned they’ll declare an ener- Cuban hotel operator Gran Caribe to promote bile fleet of Havanatur S.A., a Cimex sub- gy emergency if oil prices rise further due to a Cuban beaches and colonial cities such as sidiary and Cuba’s largest car-rental agency. U.S.-led war against Iraq. Trinidad. The new offers include tours to the Cimex will also begin construction of a Cuba’s natural gas is used to produce elec- central province of Cienfuegos and the east- cold-storage facility and a food-processing tricity by Energas, a venture in which ern city of Santiago de Cuba. plant, as well as an unspecified number of Toronto-based Sherritt International Corp. has RULING FAVORS BACARDI IN TRADEMARK SUIT tourist hotels. During 2002, Cimex remodeled a 33% stake (see box, page 13). several dollar stores and other facilities “to Foreign companies, led by Sherritt and The U.S. Patent and Trademark Office has maintain its commercial capacity,” and also another Canadian firm, Pebercan, have joint delivered yet another legal blow to Havana constructed four Havana apartment buildings. ventures and production agreements with Club Holdings (HCH) through its Jan. 21 deci- A press release noted that Cimex’s strategy Cupet and account for about 60% of Cuba’s oil sion to uphold efforts by the Bacardi rum “is aimed at guaranteeing at least a 55% share” and gas output, according to Reuters. empire to strip the Cuban government of its of Cuba’s wholesale and retail sales market. Rivero told Opciones that the first test well U.S. rights to the Havana Club trademark. Cimex’s businesses are engaged in a wide would be drilled in Cuba’s 112,000-sq-km Gulf Cuba Trader reports that USPTO rejected a variety of activities. In addition to Havanatur, of Mexico waters later this year — most likely motion to dismiss Bacardi’s complaint against these include Tiendas Panamericanas, Servi- by Spain’s Repsol YPF. HCH — a joint venture between state entity Cupet, Havanatur, FINCimex, Consultoría To date, that company and Sherritt have CubaExport and Pernod Ricard of France — Jurídica, Coral Negro, Cuba Packs, Imágenes signed contracts to explore a combined 10 based on an undisclosed e-mail to the govern- Cimex and Videocentros Imágenes. concession areas off Cuba’s northwest coast ment from Florida Gov. Jeb Bush. Details: Corporación Cimex S.A., Ave. 1ra. y at a depth of 1,000 meters. “If we hit oil, as is In that e-mail, Bush urged the agency to Cero, Miramar, Havana. Tel: +53 7 203-9246. hoped given the results of initial studies,” said accept Bacardi’s arguments in the case, which HCH said amounted to a violation of Florida’s CUBA THREATENS FOREIGN DRUG DEALERS Rivero, “it will take two or three years to develop the infrastructure to exploit it.” Sunshine Act because of the potential for that The Castro government warns it’ll crack e-mail to influence the outcome of the case. down on foreigners bringing illegal drugs into HOLGUÍN FACTORY TO PRODUCE BAMBOO But the USPTO’s Trademark Trial and the island, but complained that it’s not getting The eastern province of Holguín will soon Appeal Board ruled that the Sunshine Act much cooperation from U.S. officials. get a new factory to process bamboo for the doesn’t apply to USPTO decision-makers. Faced with a growing drug problem, Cuban domestic market. Under the ruling, both parties have 40 days authorities have begun conducting an intense Cuban media says the factory will be capa- to respond to Bacardi’s motion for summary series of police raids in Havana and else- ble of processing up to 8,000 meters of bam- judgment in favor of a decision to strip the where, reports Inter Press Service. boo a year into beams and boards to build controversial trademark. “Recently, the illicit use of drugs [in Cuba] houses, furniture and handicrafts. The factory The basis of Bacardi’s motion, says Cuba has grown, although at a much lower rate will use balcoa bamboo — of which 12 hec- Trader, is that CubaExport failed to renew its than it has in other countries,” according to tares have been planted in nearby mountains rights to the Havana Club trademark — a step Communist Party newspaper Granma. The — as well as bamboo from Pinar del Río, Villa Bacardi says should have been taken in 1996. article said 252 foreigners had been arrested Clara, Sancti Spíritus, Cienfuegos, Granma, As a result, argues Bacardi, USPTO should since 1995 for importing narcotics, including Guantánamo and Santiago de Cuba provinces. decide that CubaExport is no longer the 146 who are awaiting trial or serving jail owner of the trademark under U.S. law. terms in Cuban prisons. HAVANA RELEASES ‘TERRORIST’ LIST “Faced with this adverse phenomenon, the The Cuban government has published a list EUROPEAN COMMISSION TO OPEN ‘EMBASSY’ position of the Revolution is categorical: It will of 64 people it calls terrorists. Not surprising- The European Union and Cuba have signed admit into the country nothing that threatens ly, the list — which appears on a state-run an accord to open a European Commission the security, the health, the ethics, the dignity, website — includes Orlando Bosch, who mas- office in Havana on Feb. 14, with the aim of the values that we have created in the face of terminded the bombing of a Cuban airliner in coordinating economic and political ties. danger. There will be impunity for no one.” 1973, as well as Andrés Nazario Sargen, the Cuba’s ambassador to the EU, Rodrigo CUPET: OIL, GAS OUTPUT TO RISE 17% IN 2003 aging head of the Alpha 66 guerrilla group. Malmierca, told Spanish news agency EFE The list also includes Felips Valls, owner of that the opening of the office “confirms both Cuba’s oil and natural gas output will jump Miami’s Versailles and La Carreta restaurants, parties’ agreement to continue developing by 17% this year, reaching the equivalent of along with WQBA radio host Ninoska Pérez. links at all levels.” 34.1 million barrels in 2003 — or an average What’s really shocking, however, is that the The new office will be responsible for coor- 93,400 barrels per day. list is full of personal details, including Miami dinating political, economic and cultural work, Fidel Rivero, president of state oil entity home addresses, work addresses, home and as well as promoting the EU in Cuba. Cubapetroleo (Cupet), told the official busi- work phone numbers, beeper numbers, e-mail On Feb. 2, Guy Legrás, the EU’s director of ness weekly Opciones that 2003 oil production addresses and physical descriptions. foreign affairs, moved to Havana to take up would reach 4.154 million metric tons (29.1 his new post as the office’s business attaché. million barrels) and natural gas about 800 mil- MEXICO'S VIÑALES ESTABLISHES AIR LINK lion cubic meters, compared to 3.627 million Viñales Tours of Mexico City has launched CUBA ROLLS OUT WELCOME MAT FOR STUDENTS tons (25.39 million barrels) of oil and 569 mil- a new air route between Mexico and Cuba, The Cuban government allowed 905 U.S. lion cubic meters of gas in 2002. after inaugurating regular Tijuana-Monterrey- college students to visit the island during the In the interview, Rivero said domestic oil Havana flights in conjunction with Mexicana 2000-01 school year, a 64% increase over the and gas was used to generate 92% of Cuba's de Aviación. year before. The Associated Press said this electricity last year. Company executives say the addition of number is likely to grow as students increas- Since the Soviet collapse in 1991 ended the new flights results from a growing demand for ingly turn to the only communist nation in the annual delivery of 13 million tons of subsi- Cuba as a tourist destination. Western Hemisphere. “It’s sort of forbidden dized Soviet oil, reports Reuters, the Cuban The Tijuana-Monterrey-Havana route is the fruit,” University of Nebraska senior Shane government and foreign investors have spent second weekly flight added to Mexicana’s itin- Pekny told AP. Explained Drake University 2003_02/CubaNews 2/4/03 10:03 AM Page 13

February 2003 ❖ CubaNews 13 professor Jonathan Torgerson, who has taken particulares rent rooms for $25, and entire and medicines — on the Cuba-bound trips. groups from Iowa to Cuba every year since apartments for $30 per night. Between 650 Hudson said he hopes the new service will 1996: “We have forged the way in terms of and 800 casas particulares are licensed in San- appeal to the 35,000 Cuban-Americans living making contacts.” tiago de Cuba, the island’s 2nd-biggest city. in the Tampa Bay area. “We’re hoping people Before traveling to Cuba, a school must The casas particulares are an important fac- learn about us through the Cuban community first obtain a license from the U.S. Treasury tor in Cuba’s tourism industry, because they through word of mouth,” he said. Department prohibiting the students from appeal to budget travelers who can’t afford Details: Yucatan Express, Tampa. Tel: (866) engaging in business during their visit; stu- more expensive hotels. They also allow the 670-3939. Internet: www.yucatanexpress.com. dents must also obtain Cuban visas. government to direct business to hotels by SANROS REPORTS SHRIMP REVENUES Michael Hinden, the University of Wiscon- adjusting the number of new permits issued. sin’s associate dean of international studies, Cuban state entity Sanros captured and pro- TAMPA-MATANZAS FERRY MAY START UP SOON says he expects Cuba to become a popular cessed 377 metric tons of shrimp in 2002, ac- study-abroad option for students in a variety A Tampa company aims to launch — by the cording to government reports. The company, of majors. “There’s a high level of curiosity as end of February — the first ferry service located in the eastern province of Las Tunas, to what life may be like in a country so close between Florida and Cuba in 41 years. reported a 21% growth over 2001, achieving a to us in distance,” he said, “yet so far away in The Miami Herald reports that Yucatan yield of 900 kilograms per hectare. other respects.” Express, which operates the 320-cabin, 485- Sanros said its revenues increased by Details: Peggy Blumenthal, VP/Educational foot Scotia Prince, plans to embark from a $177,000 despite a considerable drop in world Services, Institute of International Education, Tampa port on Feb. 25 for the 20-hour trip to shrimp prices last year. In 2003, the company 809 United Nations Plaza, New York, NY Matanzas, just east of Havana. But the compa- expects to capture and process 520 tons of 10017. Tel: (212) 984-5331. Fax: (212) 984- ny has yet to receive authorization from either shrimp, its highest production ever. 5574. Internet: www.iie.org. the U.S. or the Cuban government. BLACK FARMERS HOPE TO CLINCH $20M DEAL “They have applied,” U.S. Treasury spokes- ‘CASAS PARTICULARES’ LICENSES SUSPENDED man Rob Nichols told The Herald. “But it’s in The National Black Farmers Association is Faced with a fall in the demand for tourism the very beginning of the review process.” working on a deal to sell Cuba $20 million in services, the Cuban government has stopped Matthew Hudson, chairman of Yucatan food ranging from chicken to wheat this issuing permits for new casas particulares, or Express, said the $499 round-trip fare would spring, reports the Associated Press. rooms in private homes. accommodate only those who, under U.S. law, John Boyd, head of the group, said more Depending on location, size and the num- may legally travel to Cuba. The Scotia Prince than 10,000 black farmers would benefit from ber of rooms, owners who rent rooms to for- is to depart Tampa every Tuesday and return the agreement with President Fidel Castro. eigners are required to pay taxes of up to Friday mornings, through the end of April. “This could be really good for the black $150 per month. Landlords must pay the tax, The 33-year-old ship, which is registered in farmers because it’s a steady flowing business but may cease and resume operations at will, Bermuda and now operates between Tampa where we, the NBFA, would be able to get a contract directly with the farmers themselves paying a small fee to do so. and Mexico’s Yucatan Peninsula, boasts a five- and get them a fair price for their crops,” In Cuba, several thousand private homes star dining room, a casino, stage shows, a Boyd was quoted by AP as saying. are licensed for foreign rental, though the sports bar, hot tubs and a sun deck. The black leader met with Castro in number varies from year to year and season Though the Scotia Prince can carry cars, November to begin arrangements to sell corn, to season. Inexpensive hotels in Havana Hudson said the car deck would be reserved soybeans, rice, wheat and chicken. Officials charge at least $35-40 per night, while casas for humanitarian aid — such as food, clothing with the U.S. Department of Agriculture said they weren’t involved in the sale. The arrangement with black farmers would Difficulties force Sherritt to revamp Cuba unit mark the first time Cuba forges a sale with a Toronto-based Sherritt International International unsecured debentures due particular ethnic group, said John Kavulich, Corp. is proposing to swap its equity and Mar. 31, 2010, three years later than the president of the New York-based U.S.-Cuba debt for that of its struggling Cuban sub- existing notes. Trade and Economic Council. sidiary to head off a cash crunch at the Lalonde said such an arrangement “Clearly there is a political component to end of March, reports The Globe & Mail. the decision by the Cuban government with would pay a premium to the price at which respect to the NBFA,” Kavulich told AP, refer- Sherritt Power Corp., in which Sherritt the bonds currently trade. Under the pro- ring to a recent class-action lawsuit against International holds a 49.7% stake, is sched- posal, shareholders will get 1.25 restricted the USDA alleging systematic discrimination uled to pay $45 million to noteholders on voting shares in Sherritt International for in loan applications. Since 1997, the USDA Mar. 31, but does not have enough cash to each Sherritt Power share they held. has paid out over $634 million in settlements. fulfill that obligation, according to Sherritt Shareholders and noteholders will need International spokesman Ernie Lalonde. to OK the proposed changes, said Lalonde, CUBA TOUGHENS TRAFFIC RULES Delays in construction caused by the although he wasn’t sure what the thresh- Cuba’s Interior Ministry has introduced a bankruptcy of a key supplier and a 2001 old for approval will be. Sherritt holds both revised traffic code designed to bring order to hurricane meant that Sherritt Power’s debt and equity in Sherritt Power, but the island’s chaotic traffic situation. debts came due before it was able to begin would not receive replacement securities. The new regs, which took effect Jan. 1, generating cash from natural gas plants in “The proposal is designed to offer both classify infractions as highly dangerous, dan- Cuba, Lalonde told the Toronto daily. its shareholders and noteholders a premi- gerous and less dangerous. Drivers earning To avoid default, Sherritt International is um to historical trading prices of their three or more “highly dangerous” citations asking holders of debt and equity in Sher- securities as well as continuing participa- within a year will have their licenses suspend- ritt Power to exchange their securities for tion in the benefits of combining the com- ed for one to 12 months. Lesser violations Sherritt International equivalents. Holders plimentary businesses of Sherritt Power earn fines of 10, 15 or 30 pesos — pocket of unsecured Sherritt Power notes would and Sherritt International,” said a company change for most taxi drivers earning dollars. receive 12.7% of the principal value in cash, press release dated Jan. 22. But the new laws won’t bring order to just over half of the amount called for “Sherritt Power noteholders can also ex- Havana’s streets, many of which have pot- under the current amortization schedule. pect to benefit from the substantial growth holes and are clogged with pedestrians and Noteholders would receive the remain- projected in the diversified businesses of bicyclists. “It seems,” said one professional der of the principal value in 9% Sherritt Sherritt International.” driver, “that those who wrote the law never go out in the streets to know what is happening.” 2003_02/CubaNews 2/4/03 10:03 AM Page 14

14 CubaNews ❖ February 2003 GEOGRAPHY Isolated and poor, Guantánamo province is a breed apart

This is the 7th in a series of monthly articles on Cuba’s 14 provinces by geographer Armando H. Portela, who has a Ph.D. in geography from the Soviet Academy of Sciences. Portela currently resides in Miami. Population Land Use Guantánamo (212,000) BY ARMANDO H. PORTELA Sugar cane Baracoa (42,000) ocated at Cuba’s eastern tip, Guantánamo is a land of geographi- Grasslands cal contrasts that contains important natural resources and per- Sagua de Tánamo (26,000) Coffee groves L haps the island’s best-preserved wilderness. 5,000 - 10,000 Guantánamo covers 6,186 sq kms (2,388 sq miles), or 5.6% of the Cocoa country’s land area. It is a small province by Cuban standards, not only Less than 5,000 in terms of area, but also in terms of population and economic impact. Citrus orchards Transportation POPULATION Xerophitic bushes In 2002, Guantánamo had only 514,000 inhabitants, or 4.6% of Cuba’s Paved road Forest population. Traditionally, the province has reported the country’s highest birth rate as well as the highest rate of immigration to other Unpaved road Industrial facilities provinces. At present, nearly 1% of Guantánamo’s people leave the FC Central railroad province every year. From 1993 to 2000, some 38,000 guantanameros Sugar mill departed — equivalent to 7.4% of the province’s entire population. Secondary railroad The provincial capital, also known as Guantánamo, has 211,800 International airport Sugar mill (dismantled) inhabitants. The 2nd-largest city is Baracoa, with 42,000 residents. To- gether, the two cities house 49% of Guantánamo’s population. The rest Airstrip Sugar bulk terminal live in towns with less than 10,000 people, including Jamaica (8,000), Port Imías (8,000), El Salvador (6,000) and San Antonio del Sur (5,000). Irrigation systems plant U.S. military airport GEOGRAPHY Electric batteries factory Cuba’s thickest and best-preserved forests cover most of the moun- U.S. naval base tains of Guantánamo, which receives Cuba’s highest average annual 220 Kv Powerline rainfall and ironically is also the driest province in Cuba. Miscellaneous H Hotels Mountains make up 75% of Guantánamo’s land area. Curiously, there is no unified name for the province’s main mountain range. Rather, Mountains they have colorful, local names such as Cuchillas del Toa, Sierra del River Purial, Sierra de Mariana and Meseta del Guaso. Marshes Blocking the free flow of the Atlantic Ocean’s humid trade winds, the mountains are a formidable barrier for rains and divide the pro- Salt Area of Detail vince into two very different landscapes. Along the northern windward Cliff slopes, average annual rainfall exceeds 3,400 mm (134 inches). A dense rainforest, often growing over thick weathering crusts, shelters numerous plants and animals found nowhere else in the world. Sagua de Tánamo U Í N Taco Bay Atlantic Ocean South of the watershed, on the G L leeward side of the winds and O Cayoguaneque Bay rains, a narrow belt along the H H Maguana Cayo Güin coast from Guantánamo Bay to Santa Sabaneta Catalina C u Boca del Toa the Point of Maisí receives less c h i than 600 mm (24 inches) of rain- l l Baracoa La Tagua Palenque a s A d e a y fall yearly, and xerophytic thorn Bayate l T B o a t a B e r H E riv a l o a M G a s o bushes predominate. U u T S Another outstanding geogra- Caridad de i C los Indios e Maisí FC r phic trait of this part of the island Puriales r Gran EL SALVADOR HONDURAS Capiro Maisí E de Caujerí a Point is the series of spectacular mar- A. MARTÍNEZ Jamaica r Tierra

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S b millions of years. i b r a To some extent, the largely C mestizo inhabitants are physically U.S. Naval Base Armando H. Portela

10 20 30 40 kilometers 0 5101520 25 miles 2003_02/CubaNews 2/4/03 10:03 AM Page 15

February 2003 ❖ CubaNews 15 distinguishable from other Cubans. The local Spanish and even some staples of the local diet contrast with the rest of the island. GITMO: A THORN IN CASTRO’S SIDE These distinctions make Guantánamo unique — to the point that driving through the province is almost like being in another country. Guarding the entrance to Guantánamo Bay since 1901, the U.S ECONOMY Naval Base known affectionately as “Gitmo” is the only American mil- Guantánamo’s economy is mainly agricultural, with 40% of its land itary enclave in a communist country. It covers 118 sq kms (45 sq area devoted to farms. But arable land, found only in the miles) — one-third of that inland water — and is protected by a heav- Guantánamo Basin and at Caujerí, is scarce and poor. Nearly 20% of ily patrolled perimeter fence that stretches 27 kms (17.4 miles). the province’s farmlands reportedly suffer from saline intrusions. The base is a byproduct of the 1898 Spanish-American War. A As part of the Cuban sugar industry’s recent downsizing, the gov- treaty signed exactly 100 years ago this month by Washington and ernment has dismantled three out of the province’s six sugar mills, leaving a fourth producing only molasses. The dismantled mills — the newly born Republic of Cuba granted the United States the right Costa Rica (formerly Ermita); Honduras (Isabel) and Paraguay (Los to keep the site exclusively for coaling and naval operations. Caños), along with El Salvador (Soledad), which will produce Because the treaty cannot be broken unless both governments molasses — together yielded some 90,000 metric tons of sugar annu- agreed to do so, the United States is assured a perpetual military ally in their heyday. But authorities became increasingly unable to presence on Cuban soil. operate the mills after the collapse of the Soviet bloc. Under a May 1934 modification, the U.S. government agreed to Another two mills, Héctor Infante (Romelié) and Jorge Prieto pay Cuba $4,085 per year to lease the territory, though Fidel Castro (Santa Cecilia), were shut by authorities before 1990. has never deposited a single U.S. Treasury check because doing so The two surviving mills, Argeo Martínez (Esperanza) and Manuel Tames (San Antonio), have a daily grinding capacity of 4,000 to 4,500 would be an admission of yanquí sovereignty over the base. tons, giving the province a total sugar production of between 40,000 Gitmo — which happens to host the only McDonald’s restaurant and 50,000 tons per harvest. That compares to the 1980s, when on Cuban soil — has been the site of daring escapes by desperate Guantánamo produced 140,000 tons per season. Cubans swimming for miles at night in shark-infested waters, or While sugar production is now negligible, Guantánamo still pro- running blindly across minefields under the eyes of Cuban border duces 25% of Cuba’s coffee crop, ranking second after Santiago de guards with shoot-to-kill orders. Cuba. The coffee plantations are located in the mountains, where Following the rupture in U.S.-Cuban diplomatic ties in the early deep soils, cool temperatures and high humidity provide excellent ‘60s, all vital links with Cuba were abruptly broken, including the growing conditions for the bean. Nevertheless, plantations have been pretty much neglected, driving down both yields and quality. freshwater supply from Río Yateras, for which the U.S. paid $14,000 Annual production of coffee today is less than 5,000 tons. monthly for up to 2 million gallons per day. The situation forced the On the other hand, Guantánamo is beginning to benefit from pro- U.S government to make the base self-sufficient for a permanent pop- duction of high-value organic coffee. Sources say that in 2002, the ulation of around 6,000 military personnel and their dependents. province exported around 70 tons of such coffee to Europe, with the In the past, Gitmo has sheltered thousands of desperate Haitians beans certified by the German agency BCS Öko-Garantie GmbH. and Cubans, and in the mid-1990s even hosted refugees from war- In order to win that kind of certification, coffee producers must torn Kosovo. More recently, Gitmo has become a tropical peniten- use biological rather than chemical means to fertilize crops and pro- tiary for Taliban and al-Qaeda fighters captured in Afghanistan. tect them from plagues and insects. Their reward: considerably higher prices on the world market. Some 3,000 hectares of land have U.S. NAVAL BASE AT GUANTÁNAMO been devoted to organic coffee production in Guantánamo, with the goal of eventually boosting output to 800 tons a year. PARAGUAY

Guantánamo is also Cuba’s leading cacao producer, averaging G

some 1,700 tons annually. That’s considerably lower than the 6,800 u

a Rancho s

tons produced per year in the early 20th century, before plantations Grande o Glorieta were abandoned as a result of Cuba’s sugar expansion. r Aided by the dry climate, a facility at Caimanera produces 115,000 Ensenada Las de Joa tons of table salt a year, equivalent to 70% of Cuba’s annual consump- Mata Abajo Salinas

tion. A furniture factory in the capital supplies Cuba’s tourist sector. G Cayamo

u Punta Manatí B a h í a d With only 303 rooms in poor-quality hotels, tourism capabilities a e G n u a are limited to the city of Baracoa. However, Guantánamo’s outstand- t n t á n a m o á n a ing tropical landscapes and virgin shores offer an important poten- m Caño Caimanera

tial for future development. o Verga r . Boquerón INFRASTRUCTURE Guantánamo’s network of highways and railroads is very limited. Some mountain settlements are actually inaccessible by modern Northeast gate means of transportation. Guantánamo’s sugar production, as well as (closed) . Medico

part of the production of neighboring Santiago de Cuba province, is r Key o

exported through Boquerón, where facilities for bulk shipping can m Hospital Camp a Key X-Ray n handle about 5,000 tons daily and store up to 20,000 tons. á t Hospital n y Two domestic airports, located in Guantánamo and Baracoa, sup- a B a u m o n a port some domestic traffic. Before the economic collapse of the ‘90s, G High t a n School light planes linked some isolated settlements such as Maisí on Mahomilla a Bay u Ferry Cuba’s eastern tip, but local air service has since been suspended. G dock Barracks Provincial radio stations here play a key role in personal commu- Headquarters McCalla Camp Bulkeley nications among rural guantanameros. Field Radar Leeward Point (closed) Through radio broadcasts, people send messages to relatives or Field friends, usually in order to arrange meetings. A typical message Windward Point 5 km might be: “To Pedro at La Tinta, meet Mongo and his wife coming 0 from Capiro on Saturday at dawn at the Río Yumurí. Make sure to 3 miles bring an extra mule with you.” 2003_02/CubaNews 2/4/03 10:03 AM Page 16

16 CubaNews ❖ February 2003 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 Feb. 1-28: “Cecilia Valdes, A Cuban Ballet.” Video recording based on novel by Cuban fast-growing region. writer Cirilo Villaverde is presented at 2:30 p.m. daily all month at UM’s Casa Bacardi. Subscribe to Caribbean UPDATE, a monthly newsletter founded in 1985. This Details: Institute for Cuban and Cuban-American Studies, PO Box 248174, Miami, FL publication has been praised by corporate 33124-3010. Tel: (305) 284-2822. Fax: (305) 284-4875. E-mail: [email protected]. and government executives, as well as by scholars and journalists, for its insightful, Feb. 11-13: 2003 World Ag Expo, Tulare, Calif. John Kavulich, president of U.S.-Cuba timely coverage of the 30-plus nations and Trade and Economic Council, to speak on potential for U.S. farm equipment exports to territories of the Caribbean and Central Cuba. Details: Nancy Lockwood or Doreen Nagle, World Ag Expo, PO Box 1475, Tulare, America. When you receive your first issue, you have two options: (a) pay the accom- CA 93275-1475. Tel: (800) 999-9186. Fax: (559) 686-5065. E-mail: [email protected]. panying invoice and your subscription will Feb. 17-19: U.S.-Cuba Business Conference, Westin Regina Resort, Cancún, Mexico, be processed; (b) if you’re not satisfied, simply write “cancel” on the invoice and with fully hosted day in Havana. Sponsored by the U.S.-Cuba Trade Association, event return it. There will be no further obligation will focus on U.S. agriculture, wood and medical products exports to Cuba. Cost: $2,390 on your part. inc. Cancún/Havana airfare. Details: Conway Data Inc., 35 Technology Parkway S., #150, The cost of a subscription to Caribbean UPDATE Norcross, GA 30092. Tel: (770) 446-6996. Fax: (770) 263-8825. E-mail: [email protected]. is $267 per year. A special rate of $134 is available to academics, non-profit Feb. 24-28: 5th Habana Festival, Palacio de Convenciones, Havana. “A tradition for peo- organizations and additional subscriptions mailed to the same address. ple from all over the world who love a good smoke.” Details: Marketing Department, Hab- To order, contact: Caribbean UPDATE, anos S.A., Calle 22, No. 115 e/1ra y 3ra, Miramar, Havana. Tel: +53 7 204-0513. Fax: 52 Maple Ave., Maplewood, NJ 07040. Tel: +53 7 204-0549. E-mail: [email protected]. Internet: www.habanossa.com/5festival.asp. (973) 762-1565. Fax: (973) 762-9585. E-mail: [email protected]. We accept Mar. 10-14: XVI World Congress of Sexology, Palacio de Convenciones, Havana. Cost: VISA, MasterCard and American Express. $500. Details: National Center for Sexual Education, Calle 10, No. 460, e/19 y 21, Vedado, Havana. Tel: +53 7 833-4844. Fax: +53 7 830-2295. E-mail: [email protected].

Mar. 27-Apr. 3: Fourth Annual Havana Film Festival New York 2003. “Featuring the best in Cuban and Latin American cinema, with screenings in three boroughs: Manhat- tan, Queens and the Bronx.” Details: HFFNY, 3 East 69th St. #SR2, New York, NY 10021. Tel: (212) 946-1839. Fax (212) 628-4969. E-mail: [email protected]. Internet: www.aflfc.org.

Apr. 1-11: Earthwatch expedition, Los Indios Ecological Reserve, Isla de la Juventud, Editor & Publisher ■ LARRY LUXNER ■ Cuba. Project aims to “conduct the first comprehensive study of sandhill cranes in Cuba Washington correspondent to promote their conservation.” Cost: $2,295. Details: Vanitha Sivarajan, Earthwatch, Box ■ ANA RADELAT ■ 75, Maynard, MA 01754-0075. Tel: (800) 776-0188. Fax: (978) 461-2332. E-mail: Miami correspondent [email protected]. Internet: www.earthwatch.org/expeditions/chavez-ramirez.html. ■ DOMINGO AMUCHASTEGUI ■ Apr. 3-10: ULI Study Tour to Cuba. Focus on land use, urban planning, sustainable de- Cartographer velopment. Details: Rose Kim, Urban Land Institute, 1025 Thomas Jefferson St. NW, #500, ■ ARMANDO H. PORTELA ■ Washington, DC 20007. Tel: (202) 624-7000. Fax: (202) 624-7140. E-mail: [email protected]. Art director ■ IVAN SCHWABE ■

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